What slowdown? Fresh off earnings beat, Cisco CEO sees a lot of opportunity right now

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Shares of the company rose about 4% in extended trading after the company's fiscal first-quarter earnings and revenue beat Street estimates.

Cisco CEO Chuck Robbins said Wednesday that he expects customers will keep spending to keep their technology infrastructure up to snuff — a sentiment at odds with some on the Street who predict a slowdown. "The [Covid] pandemic taught our customers a very important lesson about being prepared with your technology infrastructure. And I think that they're going to continue to spend as much as they can," Robbins told Jim Cramer in an interview.

"Assuming our bookings for the year are even down 10% – which is not what we're forecasting – we would project we'll exit the fiscal year with two to three times our normal year-ending backlog," he said, adding that the company's backlog typically amounts to around $4 to $5 billion dollars. "And then you look at 43% of our business coming from recurring [customers]," Robbins said.

 

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