Network provider Cisco Systems has halved its sales forecast as it struggles with reduced demand and increased competition.
Cisco's annual revenues will grow up to 7% over the next three years, down from a previous target of up to 17%. But profits are expected to grow up to 9%, said the company.
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Speaking at Cisco's annual analysts' day, CEO John Chambers said it intended to do battle with Chinese network provider Huawei, which he described as a very tough competitor, reported Reuters.
Chambers also said he wants Cisco to generate 40% of its long-term growth from emerging markets compared with its current 20%. But he said he was seeing positive signs from Cisco's existing customers.
Chambers said Cisco would refocus on its core markets in routers and switching, collaboration, datacentre virtualisation and video, in an organisational restructure announced earlier this year
"Bottom line, we have lost some of the credibility that is foundational to Cisco's success - and we must earn it back," Chambers said.