Cisco views modest growth

Cisco Systems shares fell 5% on Wednesday as the world's largest manufacturer of networking gear said it sees only modest near-term growth.

The California-based company's fourth-quarter profit rose 27%, matching Wall Street expectations, as cost controls and product savings helped Cisco.

Shares dropped, though, as investors yanked support from a multi-month rally that lifted Cisco's stock to an 18-month high of $19.81 only last week.

On Wednesday, shares fell by US$1.08 to US$17.79.

In recent months, shares of Cisco have been on the rise as investors anticipated a more robust recovery.

However, in its announcement on Tuesday, Cisco said it expects only minor sales growth in its first quarter.