Cisco CEO: 'We Have Lost the Accountability' (CSCO)

Cisco Systems CSCO CEO John Chambers issued a memo to employees acknowledging that the company has flaws in "operational execution." "We have been slow to make decisions, we have had surprises where we should not, and we have lost the accountability that has been a hallmark of our ability to execute consistently for our customers and our shareholders," Chambers wrote. "That is unacceptable. And it is exactly what we will attack." "Bottom line, we have lost some of the credibility that is foundational to Cisco's success - and we must earn it back," he continued. "Our market is in transition, and our company is in transition. And the time is right to define this transition for ourselves and our industry." According to a Reuters report, "Cisco's last two quarterly results have disappointed the market. In November, the company announced sales growth would be lower than analysts had expected. In February, Cisco warned of dwindling public spending and weaker margins from tough competition. The shares have lost a third of their value over the past 52 weeks." Shares of Cisco gained $0.16, to close at $17.22 on Tuesday.