What was Cisco's revenue growth in the reported period?

Cisco Systems, Inc. reported net sales increased by 21% for the three months ended April 28, 2007, and by 24% for the nine months ended April 28, 2007, compared to the corresponding periods in the prior fiscal year.

How did the acquisition of Scientific-Atlanta impact Cisco's financial performance?

The acquisition of Scientific-Atlanta, completed in February 2006, contributed to revenue growth in the reported periods. For the nine months ended April 28, 2007, Scientific-Atlanta's net sales totaled $1.975 billion. However, the integration of Scientific-Atlanta's business, which has a lower gross margin percentage than Cisco's core business, led to a decrease in overall gross margin percentage for the company.

What is Cisco's current cash position and how is it being utilized?

As of April 28, 2007, Cisco Systems, Inc. reported cash and cash equivalents and investments totaling $22.3 billion, an increase from $17.8 billion at the end of fiscal 2006. This growth was primarily driven by strong operating cash flow ($7.4 billion for the nine months) and issuance of common stock. The increased cash position is partly in anticipation of upcoming acquisitions, including WebEx and IronPort. The company also utilized $6.3 billion in the first nine months of fiscal 2007 for its significant stock repurchase program.

CSCO 10-Q Quarterly Report Q3 FY2007 — Revenue, Net Income, EPS

Summary

Cisco Systems, Inc. reported strong financial results for the third quarter and nine months ended April 28, 2007. Net sales saw a significant increase of 21% and 24% year-over-year for the respective periods, driven by robust growth across its geographic theaters and product families. The company's strategy, which includes focusing on the commercial market, expanding advanced technologies, and evolving its support model, appears to be paying off, with advanced technologies sales growing by 36% and 53% for the quarter and nine months, respectively. Acquisitions, notably Scientific-Atlanta, are contributing to revenue growth, although they also impacted gross margin percentages due to a lower gross margin business model. Financially, Cisco demonstrated healthy profitability with net income increasing by 34% for both the quarter and nine months. Diluted earnings per share also saw substantial growth. The company's balance sheet remains strong, with cash and cash equivalents and investments growing to $22.3 billion, reflecting strong operating cash flow of $7.4 billion for the nine-month period and strategic anticipation of upcoming acquisitions like WebEx and IronPort. Cisco continued its commitment to shareholder returns through a significant stock repurchase program, spending $6.3 billion in the nine-month period.

Key Highlights

1Net sales increased by 21% and 24% for the three and nine months ended April 28, 2007, respectively, compared to the prior year periods.
2Net income grew by 34% for both the three and nine months ended April 28, 2007, compared to the prior year periods.
3Sales of 'advanced technologies' products saw significant growth of 36% and 53% for the quarter and nine months, respectively.
4The acquisition of Scientific-Atlanta is contributing to revenue, with its net sales totaling $752 million for the third quarter and $1.975 billion for the nine months.
5Cash and cash equivalents and investments increased to $22.3 billion as of April 28, 2007, up from $17.8 billion at the end of fiscal 2006.
6Cisco repurchased $6.3 billion of its common stock during the first nine months of fiscal 2007.

CISCO SYSTEMS, INC. Quarterly Report for Q3 Ended Apr 28, 2007

Summary

Key Highlights

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