Cisco Systems Inc Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : I guess maybe if I can start with a clarification on the orders. I think, Chuck, I heard you say orders were sequentially 1 point below seasonality. But if you can clarify whether on a quarter-over-quarter basis, they were up or down, and I'm not sure if you gave it year-over-year. But maybe more broadly, as you think about your guide for next year as well, are you -- what are you assuming for orders in that? And I have a follow-up.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Okay. Got it. And for my follow-up, I think I wanted to sort of touch on that expense control that you talked about and EPS growing faster than revenue. Is that sort of a change of thinking from the Analyst Day in terms of -- I think at the Analyst Day, you were talking about sort of limited operating leverage and growing earnings more in line with revenue. It seems to be that outside of the gross margin, you're thinking about being a bit more disciplined and pulling back on expenses, but maybe confirm if that's sort of how you -- if we are interpreting that right.

Question: David Vogt - UBS Investment Bank, Research Division - Analyst : Maybe just more qualitative and maybe as a follow-up to Simon's question. Can you kind of give a little bit more color on what you saw, let's say, in March into April and what you're seeing today from a macro perspective? Because it certainly sounds like from our conversations with partners and other industry folks that March was a bit softer than people had anticipated, and it didn't improve in April. Just love to get your perspective there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2023 / 8:30PM, CSCO.OQ - Q3 2023 Cisco Systems Inc Earnings Call And then I'll give you my follow-up real quick. So if I kind of take your comment about the 3-year plan, it certainly would imply kind of revenue growth next year in kind of the 2%, 3% range and EPS in the 5% range. Is that kind of what you're trying to communicate from a back-of-the-envelope perspective next year given the macro headwinds?

Question: David Vogt - UBS Investment Bank, Research Division - Analyst : Yes. If I just kind of take the back-of-the-envelope math on your 5% to 7% 3-year target, that would imply revenue growth next year in the 2% to 3% range and EPS maybe 5% to 6% range. Is that kind of what you're trying to message here? Just so we have a sense for how you're thinking about the macro.