He said the network equipment maker is unlikely to lose market share in the business heart of routing and switching, but there is strong competition and the name of Huawei Technologies Co Ltd as its major rivals.
Chambers, one of the leading companies in Silicon Valley dean, said the company was surprised by a sudden drop in orders from public sector clients in recent weeks in its first fiscal quarter ended October 30. "I hate to be unpredictable, and it really was a disappointment for us," he told an annual meeting of shareholders held in Santa Clara, California, and live streaming.
"I'm sorry. I'm really disappointed, "he said. "I believe that transparency and consistency is very important. We will not surprise you very often and I apologize that we did. "Shareholders applauded after the closing speech. Cisco share closed up 1.06 percent at $ 19.61 Thursday.
But the shares are still down about 20 percent from the middle of last week when the company expects revenue growth of 9 to 12 per cent for fiscal 2011, well below the 13 percent analysts had expected. A projection of 3 to 5 per cent growth in turnover in the second quarter also fell far short of Wall Street expectations.
"Chambers said conditions were mixed in Europe, where governments were indebted to cut spending . He said that federal spending in the United States was "great" but that local government spending and the state had fallen off a cliff.
Some analysts said the slowdown fears that the company is neglecting the bread and butter business of selling traditional routing and switching, as it expands into new products such as cameras and video servers. Asked about the possibility of losing market share in its core business.
Chambers said: "I would say that is unlikely." He acknowledged, however, that the company faces strong competition, especially from China manufacturer of communications equipment from Huawei.
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