CHICAGO (CNN/Money) - Technology stocks pulled back Wednesday after a tepid outlook from Cisco Systems, but the damage was minimal compared with the recent gains achieved by the sector.

The Nasdaq Composite Index fell 16.95 to close at 1,506.76, according to preliminary results.

Among technology blue chips, IBM (IBM: Research, Estimates) lost 67 cents to $86.68, Microsoft (MSFT: Research, Estimates) slipped 39 cents to $25.99, but Dell Computer (DELL: Research, Estimates) managed to gain 13 cents to $30.64.

Leading the Nasdaq lower was Cisco (CSCO: Research, Estimates), which dropped 40 cents to $15.50 after the networking firm reported a fiscal third-quarter profit that beat Wall Street estimates. But the company also issued a cautious outlook for its fourth quarter, noting that it expects revenue to be unchanged from the third quarter, which would fall short of analysts' forecasts.

That tech shares would retreat a bit comes as no surprise, given the recent Nasdaq rally -- the index reached an 11-month high at Tuesday's close. Tech shares had been steadily rising even when the broader market retreated, a sign that investors are optimistic that demand for technology products will improve later in the year.

But investors hoping to hear such statements from Cisco were disappointed, as company executives noted that it's too soon to determine whether the improved bookings Cisco saw late in the quarter would be sustainable.

Nonetheless, the mild nature of the losses suggests investors were merely taking a breather from a lengthy bout of buying.

Other networking stocks followed Cisco lower, including Juniper Networks (JNPR: Research, Estimates), down 10 cents to $12.19, and Tellabs (TLAB: Research, Estimates) down 39 cents to $6.22.

The Amex Networking Index fell 2.70 to 178.12.

The weakness struck all tech sectors, even those in which good news was to be found. Intel (INTC: Research, Estimates) fell 38 cents to $19.16 despite the fact that the chip maker reaffirmed its second-quarter outlook.

The Philadelphia Semiconductor Index, which has been at the forefront of the tech charge this year, fell 8.53 to 344.47.

Other chip stocks finishing lower included Analog Devices (ADI: Research, Estimates), down 63 cents to $33.55, Novellus Systems (NVLS: Research, Estimates), down $1 to $28.95, and Advanced Micro Devices (AMD: Research, Estimates), off 16 cents to $7.48.

One bright spot in the tech landscape was Electronic Arts (ERTS: Research, Estimates), which gained 86 cents to $62.60 after the video game maker reported better-than-expected fiscal fourth-quarter earnings and delivered an optimistic first-quarter outlook.