Cisco Systems’ (CSCO) Q1 2017 Earnings Call

posted in: Earnings Call, Notes | 0

Chuck Robbins – CEO

On the US elections

“Post-election I think that, most CEOs that I talk to we are pragmatic about the result and now we are all focused on the policy issues that matter to each of our companies…I think that President-elect Trump appears to be very business oriented and is very focused on driving the US economy and anytime the US economy improves, that’s certainly good for us”

Macro Uncertainty leading to CapEx weaknesses for service providers

“Right now I think there are unique set of characteristics particularly in SP [Service Provider] space you have the overarching macro uncertainty in the economy which I think has led to the SP CapEx weakness has been reported all year by the analyst as well as you have the political and regulatory environments. They are somewhat uncertain both in the US and around the world. ”

Kelly Kramer – EVP & CFO

If the optimism of the last week is sustained, it will be a boon to them

“I’d say for campus switching which is two-thirds roughly of our entire switching business which is our biggest business unit. I’d say most of that is macro, right. I mean it is the one area and I think we’ve talked about this before, it’s one area that people can put off doing a refresh, if there is any macro concerns and that’s what we typically see anytime you see any economic pause or macro event. So I do truly feel that if the optimism we’ve seen this week in the stock market continues giving that feeling of optimism in the economy I would expect that to raise all boats in our campus switching side.”

Steve Milunovich – Analyst from UBS Securities

“…we just wrapped up our tech conference and we had a panel on folks who helped companies moved to the cloud and the general consensus was that private cloud implementations generally are not working and many companies that begin on a private cloud path end up going down a public cloud path.”