But some analysts focused on the better-than-expected results.

"It's a good solid report relative to expectations and relative to the macro environment going in. Cisco's good at executing, but it can't be all that bad if it's beating numbers," Mark McKechnie, analyst at American Technology Research.

Cisco said U.S. orders grew around 5 percent in the quarter, while European orders rose 14 percent and emerging markets orders grew 10 percent.

One major weakness in the quarter was a 3 percent decline in orders from U.S. service providers, or phone and cable companies, but some said that was no surprise after a particularly strong quarter a year earlier.

Sales to such customers are seen as particularly volatile due to the size of each order. Some analysts were reassured by strong sales of Cisco's flagship high-end router, the CRS-1.

Dan Davidowitz, portfolio manager at Polen Capital Management, reaffirmed his positive view on Cisco.

"They're executing as well as anyone could in this environment," he said. "In the long run, the valuation in the stock is still compelling."

Cisco shares rose to $26.70 in after-hours trade after closing up 5 cents at $26.33 on Nasdaq. The shares have been under pressure in the past several months due to worries about weaker technology spending.

(Additional reporting by Sinead Carew and Tiffany Wu, editing by Richard Chang)

Copyright Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks or trademarks of the Reuters group of companies around the world.