After having reported a series of disappointing quarters, Cisco Systems CEO John Chambers on Thursday finally put a final point on what's troubling the technology giant, CNBC's Jon Fortt reports.
Chambers said lower margin, new switching technologies are cannibalizing one of Cisco's core businesses, Fortt reports. He added that internal communications need to be more clear, Fortt noted. The 62-year-old executive also addressed growth.
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Cisco Systems chairman and CEO John Chambers speaks during a press event at the 2010 International Consumer Electronics Show in Las Vegas, Nevada.
"When you're growing, let's just say for purposes of discussion, in the high teens, you can afford to bet in many areas. When you're growing in a lower number—just for purposes of discussion, let's cut that number in half—you can't afford many of the areas," Chambers said. "So we're going to cut back on the number of priorities, get very focused on our top five [and] grow it through."
Cisco shares fell after Chambers made the comments Thursday morning.
It almost seems as though Chambers has admitted there's a problem, CNBC's Melissa Lee noted. The comments suggest he needs to take action, or shareholders will likely make changes to management, she added.
Stuart Frankel's Steve Grasso agreed. He currently has a small position in Cisco.
"I would trade these things where if you see a pop, sell it," Grasso said. "Take a little off and then I would buy it back on the dips."
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STOCK OF THE DAY: CONSTELLATION BRANDS
For Thursday's "Stock of the Day" segment, Constellation Brands CEO Rob Sands joined the "Fast Money" desk.
Watch the video to see the full interview—it starts at 1:48 on the left.
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RETAIL WINNERS
Citi analyst Deborah Weinswig on Thursday looked at the retail picture while appearing on the "Fast Money Halftime Report."
Weinswig said department stores are performing very well. Companies that will be hit by rising gas prices, however, are lower-end retailers.
Get her full thoughts by watching the video.
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Trader disclosure: On April 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Cortes owns (GS), (SDY), (EXC) and (SO). Steve Cortes is long 10 yr. notes. STeve Cortes is long U.S. Dollar vs. Euro vs. British Pound. Steve Cortes is short (F). Steve Cortes is short (BAC). Steve Cortes is short nasdaq. Steve Cortes is short (TOL). Steve Cortes is short EUR/CHF currency cross. Steve Cortes is short Wheat.
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