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.
|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.
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