Industry bellwether rings economic warning -

Industry bellwether Cisco has reported first quarter results that were better than what the cocaine nose jobs of Wall Street predicted.

But, according to Market Watch the outfit warned that it expects flat earnings and slower revenue growth for the current quarter.

Chief executive John Chambers said he thinks that Europe will get a lot worse before it gets better. However, he thinks there are signs of improvement in the US in the enterprise, service provider and commercial sectors.

Chambers warned that it was too early to speak of a trend "though we are continuing to see what we like".

He sees revenue growth in a range of 3.5 percent to 5.5 percent, compared with 11.6 percent growth in the second quarter of 2012.

In its first quarter, Cisco surprised analysts thanks to its cutting costs.

First-quarter net income rose 10.6 percent to $2.6 billion, or 48 cents per share, compared with analysts' average estimate of 46 cents a share.

Revenue rose six percent from the year-ago quarter to $11.9 billion, compared with a Street view of $11.77 billion.