The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst
: I guess, if I can just clarify one thing first. I think, Chuck, in your prepared remarks, you did say you saw the more pronounced impact
on the orders in the month of October. I think that's what I heard you say. I mean just curious, are you implying that you did see an
improvement in orders in the sort of first couple of weeks of November itself. And that's maybe part of your confidence, and that
it's a bit more temporary than a longer pause from the customers.
And then you did mention large partners really being the ones that are facing this sort of inventory installation problem. What gives
you sort of color that SMBs or smaller customers are sort of not going to face a similar issue? Or are you also baking that in, in terms
of your sort of next couple of quarters of headwinds that you're thinking about on the revenue side?
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: Scott, maybe this is for you. I just want to unpack maybe one of the comments that you made, and I know you don't guide to orders.
But I think in your prepared remarks, you said backlog is back at normal levels at the end of the quarter. So are we to assume that
the guide for 2Q and the rest of the year doesn't include backlog conversion into revenue?
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NOVEMBER 15, 2023 / 9:30PM, CSCO.OQ - Q1 2024 Cisco Systems Inc Earnings Call
And then if that's the case, to your comment about orders accelerating in the second half, I know you don't guide specifically to
orders. But you did make a comment that revenue is going to be up, I think, sequentially in the third quarter year-over-year and in
the fourth quarter sequentially and year-over-year. Doesn't that suggest like a pretty steep order acceleration, not just an acceleration,
but significant positive order trajectory in the fourth quarter and the third quarter? I know it's easy comps, but just some more color
there would be helpful.
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