Networking giant Cisco reported a whopping $2.69bn loss on Tuesday for the three months to the end of April, after being unable to sell $2.2bn worth of equipment.
The hit on inventory came on top of a $1.17bn charge for restructuring that includes 8500 job cuts by the end of July. Cisco is cutting 17 per cent of its staff, 500 more than expected.
Revenue fell from $4.93bn for the same period last year to $4.73bn, and operating profits declined to $230m, down from $1bn in comparison with the same period last year but slightly ahead of revised expectations stated by US analysts.
Quarter-on-quarter sales also dropped for the first time in Cisco's 11-year history to $4.73bn from $6.7bn in the three months to the end of January 2001.
John Chambers, chairman and chief executive at Cisco, said that events that used to take place over multiple quarters or years now took place in months.
"It is also now clear to us that the peaks in this new economy will be much higher, the valleys will be much lower and the movement between these peaks and valleys will be much faster. We are now in a valley much deeper than any of us anticipated," he said.
"The first four months of 2001 were extremely challenging as we went from year-over-year bookings in excess of 70 per cent in November, to 30 per cent negative growth within a span of several months," he added.
During a conference call, Chambers repeated earlier predictions that fourth-quarter revenue is likely to be flat with the third-quarter level at best, and could be down as much as 10 per cent sequentially.
Although Chambers felt confident in the long-term outlook for the company, he said: "This may be the fastest deceleration any company of our size has ever experienced."
At the close of trading, Cisco shares were up $1.11 to $20.36.
Ceres, located in the asteroid belt, has a carbonaceous-rich upper crust, SwRI study claims
The spacecraft found traces of hydrogen and oxygen molecules, known as hydroxyls, embedded in the rocky surface of the asteroid
The skeleton was unearthed more than 20 years ago in South Africa
Moon's dark side is mountainous, rugged and never visible from the Earth