SAN FRANCISCO (Bloomberg) - Cisco Systems Inc., the world's largest maker of networking equipment, fell as much as 4.4 percent on the Nasdaq after an analyst said investors overlooked slowing sales in developing countries when it reported earnings.

Investors instead focused on a decline in US orders, said John Marchetti, an analyst with Morgan Stanley in New York who recommends buying the shares. Cisco saw a "dramatic" drop in orders from US financial companies and automakers, CEO John Chambers said on November 7.

The company has relied on emerging markets sales, which now contribute 10 percent of revenue, as US orders slow. Sales growth in developing countries fell to 19 percent in the fiscal first quarter from 36 percent a year earlier, Mr. Marchetti said.

"We will closely monitor this critical part of Cisco's growth story for signs of a rebound or further deterioration," he said.

Cisco, based in San Jose, California, fell 98 cents, or 3.4 percent, to $27.71 at 1:38 p.m. New York time in Nasdaq Stock Market trading. Earlier, the shares slipped to $27.42, the biggest drop since November 8, the day after it released earnings.

The company has said emerging market sales can expand 30 percent to 50 percent a year, according to Marchetti.

"We look for revenue growth to return to similar levels," Mr. Marchetti said.