Cisco Systems, Inc. (CSCO)
Q4 2009 Earnings Call Transcript
August 5, 2009 4:30 p.m. ET

Executives

Blair Christie – Senior Vice President, Corporate Communications
John T. Chambers – Chairman and Chief Executive Officer
Frank A. Calderoni – Executive Vice President and Chief Financial Officer
Robert Lloyd – Executive Vice President, Worldwide Operations
Ned Hooper – Chief Strategy Officer and Senior Vice President, Corporate Development & Consumer Group
Padmasree Warrior – Chief Technology Officer

Analysts

Jeffrey Evenson – Sanford C. Bernstein & Co.
Paul Silverstein – Credit Suisse
Simona Jankowski – Goldman Sachs
Tal Leoni – Bank of America/Merrill Lynch
Mark Sue – RBC Capital Markets
Richard Gardner – Citigroup
Nikos Theodosopoulos – UBS
Simon Leopold – Morgan Keegan
Brian Modoff – Deutsche Bank
Jeff Kvaal – Barclays Capital
John Marchetti – Cowen and Company
Ittai Kidron – Oppenheimer & Co.

Presentation

Operator

Welcome to Cisco Systems fourth quarter and fiscal year 2009 financial results conference call. At the request of Cisco Systems, today’s conference is being recorded. If you have any objections you may disconnect. Now, I would like to introduce Ms. Blair Christie, Senior Vice President of Corporate Communications for Cisco Systems. Ma’am, you may begin.

Blair Christie

Great. Thank you, Bridget. Good afternoon everyone and welcome to our 78th quarterly conference call. I am Blair Christie and I’m joined by John Chambers, our Chairman and CEO; Frank Calderoni, Executive Vice President and Chief Financial Officer; Rob Lloyd, Executive Vice President of Worldwide Operations, Ned Hooper, Chief Strategy Officer and Senior Vice President - Consumer Business, and Padmasree Warrior, Chief Technology Officer.

The Q4 fiscal year 2009 press release is on US High Tech Marketwire and on the Cisco website at www.newsroom.cisco.com. I would like to remind you that we have a corresponding webcast with slides. In those slides you will find the financial information we cover during this conference call, as well as additional financial metrics and analysis that you might find helpful.

Additionally, downloadable Q4 financial statements will be available following the call, including revenue by product and geography. Income statements, full-GAAP to non-GAAP reconciliation information, balance sheets, and cash flow statements can be found on our website in the Investor Relations section. Click on the financial section of the website to access the webcast and slides and these documents.

A replay of this call will be available via telephone from August 5th through August 12th at 866-357-4205 or 203-369-0122 for international callers. It is also available from August 5th through October 16th on Cisco’s Investor Relations website.

Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results. Our commentary today will be providing information on both our Q4 financial results and our full fiscal 2009 financial results. Financial results in the press release are unaudited.

The matters we will be discussing today, include forward-looking statements and as such are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC specifically, the most recent annual report on Form 10-K and quarterly report on Form 10-Q, and any applicable amendments, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

Unauthorized recording of this conference call is not permitted and I’ like now to turn it over to John for his commentary on the quarter. John?

John T. Chambers

Blair, thank you, very much. During the opening comments of the conference call, I will focus on what I view to be the key takeaways for Q4 fiscal year 2009. First, a very candid discussion about what we are seeing in the market on a global basis, relative to Q4, and its effect on our Q1 fiscal 2010 expectations.

Second, an update given the current economic challenges, and how we are reducing the expenses, prioritizing our many opportunities for future growth, as well as our progress in realigning the resources, all of this with a focus on investing in new market adjacencies, emerging technologies, and emerging markets.

Third, on a very positive note, a detailed discussion on sequential order trends in Q4 and progress on several of our 30 plus market adjacencies that we are focused on, and finally, our revenue guidance for Q1 fiscal year 2010, with the appropriate caveats. Frank will follow these opening comments with additional details on Q4 and the majority of the fiscal year 2009 discussion.