(Telecompaper) Cisco Systems has reduced its mid-term growth forecast to 3-6 percent revenue growth per year, from 5-7 percent previously. The new outlook was given by CFO Frank Calderoni at an investors conference in . The reduced forecast is due to the weaker economic climate, conservative customer budgets and constraints at service providers. At the same time, Cisco continues to see growth in products for the data centre, cloud, mobility and security segments. Growth in these areas will offset expected flat revenues over the next 3-5 years at its core business. In compensation for the weaker revenues, Cisco aims to reduce operating costs as a percentage of sales, to the low 30s from 34 percent last year and 35 percent the previous year. The adjusted operating margin is expected to remain in the high 20s, after a figure of 28 percent the past two years. The company also remains committed to growing cash flow in order to continue its share repurchases. For the current quarter to January, Cisco forecasts revenues down 8-10 percent year-on-year, hurt by the slowdown in emerging markets, product transitions and constricted spending at operators. Over the full year, adjusted EPS is expected little changed, at USD 1.95-2.05 versus USD 2.02 last year.