The supply situation will likely get worse in the first half, while demand looks sluggish at best, with large inventory levels in the supply chain.

We believe that demand is now likely to exceed Intel's processor supply now through the third quarter and possibly into the fourth quarter.

As a result, we believe forward EPS estimates at best will remain unchanged and most likely will need to be lowered.

I'll be honest with you, it feels really good to come back from a tough situation, a sluggish first half and still capitalize down the stretch. We have been losing a lot of fights down the stretch.

The first half we came out sluggish. We shot 22 percent in the first half.

Cisco's inability to reduce its inventory after the October quarter when revenues grew 14 percent quarter over quarter and inventory grew by 59 percent quarter over quarter reaffirms our view that we have not yet seen the worst of the inventory correction for semiconductor suppliers.