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Earnings Calls: 
Cisco Systems Third Quarter Earnings Call
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 11:05 AM EDT May 08 2008


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The networking solutions provider reported revenues of $9.8 billion, a 10.4% increase from $8.87 billion in 2007 on strong order growth. However, net income dropped 5% to $1.77 billion or 29 cents a share as a result of a charge of $246 million or 4 cents per share relating to the intent to purchase, remaining interest in Nuova Systems.


Investors Question and Answers

 
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Sequential Earnings Growth | Quarterly Earnings by Year | Quarterly Earnings Growth by Year

Source: Company filings    Q1:October  Q2:January  Q3:April  Q4:July
 
John Chambers: From a big picture perspective, the fundamentals have not changed. IP is one. It is not going to be conversed data-voice video, fixed and mobile together. Video is going to drive the next load of networks.

Right after video the next load wave will be driven by collaboration Web 2.0, which is in the early stages of that. And you will see Cisco and candidly service providers as they actually right move from plumbers where it''s about transport to solutions.

From a geographic point of view, Asia-Pacific and emerging grew respectively 17% and 26%. Japan grew in service provider at 50% growth rate. Europe grew in single digits much like it did the prior quarter. U.S. was about minus 3.

When you think about the markets they occur predictability by service provider and various service providers within a country as around the world will be in different cycles. So when you think about the service provider cycles, the first segment that you see built out is the core segment.

And core occurs first then you give it to the edge. Then as the edge restarts to build it out, you start to load the networks happily for the above-mentioned reasons then you have to go back and redo the core and then go back and redo the edge.

We think we a''re set up cycle wise very well for that to occur in terms of our products. We will take a great deal of comfort in terms of your high-end CRS routers growing at a 150% year-over-year.

Paul Mansky (Citigroup): What is your order growth in North America service provider ex Scientific Atlanta?

Jim McDonald: This quarter versus previous quarter we were slightly negative.
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