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But as bad as these numbers look on the lower part of our screen if it works for tech giant Cisco the Dow would look -- Cisco jumping after reporting earnings yesterday after the bell.
They came in with better than expected profit and it -- Cisco's fourth straight quarter of earnings growth.
After the networking equipment company they -- on the Internet -- make all that hardware stumble back in 2011.
Cisco chairman and CEO John Chambers.
-- joins us now live.
From San Jose California John you're getting a lot of props from analysts today.
About these numbers and for really good really good -- -- (%expletive) up.
What is different about this quarter because the times are still challenging -- -- not.
They are Liz and I think what is different it's almost what you saw when you -- there's over at the Olympics in London.
Cisco is moving from selling routers and switches to -- helping governments are helping companies achieve their key goals.
So on this quarter we grew share of wallet we do share stand.
We exceeded the analysts' expectations with 12% growth in earnings.
Good progress around the world with the exception of Europe and Europe is as tough as you -- -- probably get tougher.
But we start to see the US start to turn up and we'll see if this maintains for another quarter that was probably the key take away in terms of positive notes on the quarter in terms of the global -- Big corporations and that kind of business so what looks stronger -- for you.
Well this I think we'd all agree government -- -- -- -- so the fact that our government business is often the federal business but 15%.
Even do will respond to that over time I think it's actually healthy for our country's direction.
But -- strong which our enterprise business which is two quarters ago was in growing year over year at all.
-- 5% last quarter and 9% this quarter.
The commercial marketplace is coming up our -- -- -- marketplace is moving from.
No single digits grace to this quarter and American 13% growth.
These numbers you see -- back to four quarters GDP movement now security to -- -- and we get -- -- at a quarter like this and is an looks positive for our country.
Okay and I and you just also mentioned that our country spends too much now we're heading toward the fiscal cliff.
As you know we've got major companies right now Wal-Mart General Electric Xerox these leaders are meeting with President Obama at this very moment to talk about.
Perhaps we hope solutions to falling off the fiscal cliff.
What is the number one thing that you believe we need to see to avoid that.
Well there's this answer might at first surprise you -- your viewers.
Not parents who -- doctors and I think of the fiscal cliff we're dealing with this symptom rather than the overall illness.
The key is we gotta have predictability and tax policy we've got to know when we had an employee in this country which -- badly wanna do.
But that employee is going to cost you repeated time.
We've got to know it's we're successful growing our profits overseas.
Can we bring them back invest in America or are we being told invest overseas.
So predictability for the business leaders is the number one issue the fiscal cliff is purity the symptom that is now facing us if we don't deal with the underlying issues in terms -- how much we -- certainty on tax policy.
-- pro growth pro job generation economy got a problem.
We found exact opposite is you are not talked about in London -- where the prime minister there was very pro business.
He focused on how -- -- cut taxes he focused on how do you make business very welcome there.
And -- the resource is in terms of their economy.
Prime minister in Canada does the exact same thing it's kind of providential leaders IE our state leaders as an example.
Canada is a very easy place to invest in India business and we're gonna continue to grow there.
We need to take perhaps some lessons learned from some of the other of our peers he democracies in terms of -- how to -- business in government.
Working together I remember you would sit Canada's the best place to invest right now which surprised a lot of people when we spoke during the Olympics but let me really pin you down on this.
William hold on hiring here in the US -- I know you hire all over the world but here in the US will you hold off on bringing on new employees.
Until the fiscal -- question is solved.
I think -- going back to the overall.
Underlying illness as opposed to the symptoms.
Our ability to invest in this country by hiring employees by doing acquisitions is dramatically limited -- -- we have clarity on tax policy.
Our ability to determine do we have our company's overseas and wherever we -- we're gonna grow or do require back in this country is very dependent upon tax policy.
As long -- those issues are open our ability to grow in the US no matter how much we want to and I'm an American company proud to be an American company.
Want to -- are here if we don't have clarity on it in approved.
Job creation type agenda that has to be very difficult for us to grow our head -- in this country.
I I want before we go to -- quickly about the situation with walk away one of the competitors out there -- the Chinese competitor that the US government that members of mostly Republican members had put out this investigative report about while wasting their ties to Chinese Government -- too close.
And that it could hurt if they did business here in the US and that they weren't cooperating with an investigation.
That helps your company if you get the business instead of while -- so my question she was this you know.
People wondered -- -- was.
With Cisco whispering in in the ears of any of these Republican members to say watch out for while way they're gonna start doing things like spying and it was there any of that at all job.
This there was not -- -- no one at the major and then their periodicals.
Credit that Cisco is behind this did not seem to be further than the truth so if someone -- something not tell people I'm gonna do it.
And other than just responding to a -- about a legal case that we had worthwhile way we did not participate at all here and I think there were probably as many Democrats as Republicans on that committee who -- the concerns.
In terms of our ability to compete against -- way.
Eighteen months ago.
Juniper by and while away with a four competitors we focus on -- people were concerned -- -- gonna beat us and we didn't -- -- moving fast enough to compete against them.
Eighteen months later we're gaining share against most often so we're tough to compete against we see while way as a serious competitor -- a global basis.
And we see our ability to compete both here in China very key.
Part of the take away is immediately after that came out the which competitors we got the -- beat out of -- in China.
In the press there so now we're balancing a little bit reminding people this is between two company's this is not between two countries well.
If anything it's that performance and the performance in London you guys wired hundreds of locations and nothing went down as far as I -- so congratulations John it's good to see you thank you for being with us.
It is it's deflation -- -- -- -- to be with you after record quarter and to perhaps at a time when.
Earnings were disappointing and guidance was even more disappoint.
Be one of the companies that looks like we're kind of swimming up the river but hopefully river's gonna change directions and -- all benefit from it what will help -- upset thank you -- we'll be right back John Chambers Cisco chairman and CEO.