This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cisco CFO: We're Not Changing Course

Stocks in this article: CSCO

SAN JOSE, Calif. ( TheStreet) -- Cisco (CSCO - Get Report) is doing all the right things to succeed in an uncertain economy, according to the company's CFO Frank Calderoni.

The Dow component eased past Wall Street's third-quarter estimates after market close on Wednesday, although investors balked at the company's weaker-than-expected guidance, pushing its shares down more than 9% on Thursday.

 Frank Calderoni
Cisco's CFO Frank Calderoni

"We're not changing course with the business and the financial strategy that we have outlined," Calderoni told TheStreet, during an interview late on Wednesday. "We have executed and we will continue to execute."

Cisco, which has emerged from a turbulent period marred by poor execution and consumer spending pressure, has set out key five business priorities. These are core networking technologies like switching and routing, collaboration, data center and cloud.

Despite a tough macroeconomic climate, this strategy is delivering, according to the Cisco CFO.

"Things are working well from a customer perspective across the major segments," he said. "We're executing on everything that we have been talking to investors about for the last several quarters."

Calderoni pointed to Cisco's 7% revenue growth for the first three quarters of fiscal 2012, which was at the high end of its target of 5% to 7%. The finance chief also explained that Cisco grew its profit 14% during the first three quarters, well above its projection of 7% to 9% growth.

As part of its long-term financial strategy, Cisco has vowed to grow profit faster than revenue.

The Cisco CFO also pointed to the company's total third-quarter gross margin of 63.1%, which was up 0.7% compared to the prior quarter. For product only, Cisco's gross margin was 62%, up 1.1% on the second quarter.

Cisco's switching business, which makes up almost a third of its total revenue, grew 5% year-over-year during the third quarter. The company's routing business, however, which accounts for 20% of total sales, was flat.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs