Speaking towards the end of Wednesday's conference call, Chambers acknowledged that Cisco needs to execute better, but attempted to downplay the second-quarter numbers. "We will look on back on this period of time, and wish that we could have avoided it, but it will make us stronger," he said. The CEO, however, pointed to continuing challenges in public sector spending, an issue that weighed heavily on the company's first-quarter results. During the second quarter, Cisco saw its public sector orders grow 7% compared to the same period last year, although Chambers warned that this area could be "severely challenged" over the next several quarter, growing in the mid-to-low single digits. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.