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Cisco sees profits almost halve

Computer firm Cisco Systems has seen its quarterly profits fall by 46%, as its

sales have declined in the face of the global economic slump.

For the three months to 25 July, Cisco made a net profit of $1.1bn ( 647m),

compared with $2bn for the same period a year earlier.

Despite the big fall, analysts had expected an even steeper decline.

And the firm said the quarter may have seen the bottom of the recession-related

downturn.

"We saw a number of positive signs this quarter in the economy and in our

business," said chief executive John Chambers.

Cisco's quarterly sales were down 18% to $8.5bn.

The company is the world's largest manufacturer of computer networking

equipment.

Cisco said its cost-cutting program - that has seen about 2,000 workers sacked

- was over.