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CLAIM #17423 · CSCO (CSCO) · 2021Q4 earnings call · Aug 18, 2021 · due Apr 30, 2022

Think of those price increases as being something that we'll feel more of the benefit of in Q2 and Q3 versus what we see in Q1.

Scott Herren · CFO

CANNOT_DETERMINE
resolved by a revision, graded at the moved level · official band 5 percent
Committed
we'll feel more of the benefit of in Q2 and Q3 versus what we see in Q1
Reported
that price increase having a bigger effect towards the second half of the year than it will have certainly during Q2

In context

Q1 as we have a good sense of the products that don't have those same impacts that we will be able to ship, that are sitting in backlog, so that's what's driving that sequential change. As you know, we did put in place a price increase; very selective, very targeted, only on the products where we were seeing the higher component costs. That went into effect August 7th, but we always honor quotes that are out there for 30 days, beyond that price because it goes -- maybe those quotes were produced before the price increase was put in. So, scroll 30 days ahead from August 7th before the first orders come in with those higher prices, and then it takes a while for those orders to come in, get built, and shipped back out to customers and for us to realize the benefit of that on the top line. Think of those price increases as being something that we'll feel more of the benefit of in Q2 and Q3 versus what we see in Q1. Meta Marshall: Great. Thanks. Marilyn Mora: Thank you. Next question, please? Operator: Paul Silverstein from Cowen, you may go ahead. Paul Silverstein: I appreciate Scott's pick-up on the previous two questions. If I look at your annual guidance, it's strong revenue, it's almost a billion above the consensus number. The EPS is more in line, it's slightly light but not meaningfully. But the difference obviously is gross margin and or OpEx. I appreciate that COVID has elevated your cost structure, as well as all of your peers. Can you give us any granular insight in terms of translating the revenue upside that you're looking at that you're expecting relatively to the more modest EPS outlook for the year in terms of gross margin versus OpEx? Scott Herren: Yes. Paul, it really is gross marg

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SEC filings for CSCO · Claim quote is verbatim from the 2021Q4 earnings call.