Chambers sorry for Cisco stock panic


Chambers sorry for Cisco stock panic

Alex Scroxton

John Chambers has taken the unusual step of apologising to investors for the weak quarterly forecast that he delivered last week on Cisco's quarterly earnings call.

The outspoken CEO's remarks caused Cisco's stock price to plunge by 16%, erasing billions from the firm's value and dragging down the Dow Jones Index, and the stocks of firms such as IBM and Intel, with it.

"I hate being unpredictable, and this clearly was a disappointment for us," said Chambers, though he added that he thought the markets had overreacted to the news.

"I consider both transparency and consistency very important. We won't surprise you very often, and I apologise that we did," he added.

Chambers claimed that public sector orders had essentially evaporated towards the back end of the quarter, and admitted Cisco had been caught napping.

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