One of the biggest names in technology, Cisco Systems (CSCO, $21.65, down $1.23), took out its 52-week low today after its CEO gave a grim outlook for spending in the sector. The stock touched a low of $21.56 earlier in the session and is trying to close above $21.77 or else it’s official.

CEO John Chambers said that the company’s customers don’t see the economy recovering until early next year. Wall Street had expected spending to pick up in the tech sector in the latter part of the year but his comments have crushed those hopes. This will hurt sales at Cisco and other tech companies as well.

I can’t say I’m surprised. Anyone who thought a recovery was around the corner has to be fooling themselves with so much weighing on the economy. The company’s CEO didn’t see a need for any dramatic cuts (yet) and said the company will continue expanding in developing markets to help offset the slowdown in U.S. demand. This all sounds good but I would look for Cisco to fall below $20 before considering any option plays.

Rick Rouse