CLAIM #17530 · CSCO (CSCO) · 2022Q4 earnings call · Aug 17, 2022 · due Jul 31, 2023
“There may be some benefit in freight and logistics. We'll see, as commercial airlift comes back online.”
Scott Herren · CFO
In context
“ahead, we did see signs of stability during Q4. And as I said, in the late in Q4 that we just closed, we actually saw some improvement. The way that improvement showed up was availability of some of the constrained parts that we have been chasing in the broker network. And obviously, when you buy from the broker network, you pay a premium for those. And you see that reflected in the gross margins. I think there'll still be some of that in Q1. You see that reflected in our gross margin guide in Q1. And then it gets better as the year goes on, not because -- I'm not assuming any price declines or any cost declines coming from our suppliers. I think the -- I don't see them lining up to come back and say, hey, good news, Scott and Chuck. We're going to charge you less for the component parts. There may be some benefit in freight and logistics. We'll see, as commercial airlift comes back online. I think the benefits we'll get will be much more from shipping more out of our backlog that are orders that were received after we did the price increases last year. Ittai Kidron: So as I think about your fiscal year, fiscal 2023 on guidance, what is the underlying assumption regarding volume component availability exiting fiscal 2023? How much better are you expecting it to be in your guidance? What's embedded there? Scott Herren : Yes. Again, our guidance assumes that we continue to be supply constrained through the year. As I said, if we could get more supply, we would be growing more quickly in fiscal 2023. So we'll continue to be supply constrained. Our modeling shows that our backlog, as we exit fiscal 2023, Chuck touched on this earlier, that we think the dollar value, obviously, i”
Verify independently
SEC filings for CSCO ↗ · Claim quote is verbatim from the 2022Q4 earnings call.