RESEARCH TRIANGLE PARK – Tech giant Cisco — one of the triangle’s largest private-sector employers — reported Wednesday earnings and revenue that beat Wall Street expectations. And in a conference call with analysts, CEO Chuck Robbins was very optimistic.
Cisco (Nasdaq: CSCO) beat earnings expectations by one cent at 83 cents and revenue came in at $13.1 billion, nearly $327 million ahead of estimates. However, revenue fell slightly by 0.2% year over year, according to business news site SeekingAlpha.
On the conference call, Robbins responded positively to a question from an analyst Amit Daryanani on economic concerns such as inflation among customers.
Robbin’s answer:
Yes, that’s a good question. And we – I would say we are not immune to significant changes in the macro that would result in an upward shift in corporate spending. My comments are only that we didn’t see any significant change in the demand signal as we entered the first quarter. So here we are.
I think on the last call I talked a lot about how I think our customers’ view of technology post-pandemic is very different than it was seven, eight, nine years ago. I think if you ask our customers if they would pause their spending during a crisis, they would probably answer when there won’t be a crisis given what we’ve covered over the past three years.
So in general we don’t hear much of a difference to your question as to whether we’ve seen different buying behavior or what they’re trying to buy from us. In some cases, customers are looking for a slightly shorter ROI, which is affecting how they think about which products to buy during these times.
In some cases, customers are looking at the lead times to fiscal 2023 budgets and trying to better understand what their budgets will look like as the deliveries and payments would be in the 2023 timeframe. But other than that, we don’t see anything significantly different.
To read the full transcript visit: https://seekingalpha.com/article/4535341-cisco-systems-inc-csco-ceo-chuck-robbins-on-q4-2022-results-earnings-call-transcript
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