Networking major, Cisco registered a drop in revenues of 17% to $ 8.2 billion while profit too declined to $ 1.3 billion from $ 1.8 billion registered during the corresponding quarter last year. The mentioned financial performance is for the third quarter ended April 25, 2009.

The company said that it is still not velar about when to expect stabilization of business.

Industry observers say that the pinch may only get worse for the company as its partners IBM and HP may actually scale down the business with it. The speculation is related to the recent announcement by Cisco that it will foray into server market which will see it in competition to HP and IBM.

The company''s move to consistently expand its offerings in areas such as video conferencing, software, services and consumer electronics is expected to come in hand for registering future growth.

Apart from this, observers say that the company's cash balance, ability to generate cash, strengthening balance sheet as well as cutting costs will see it sail through the ongoing financial crunch.

For Q4 the company expects a drop in revenue by about 17-20 %.