8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 9, 2005)

Filed November 9, 2005For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on November 9, 2005, to report its financial results for the fiscal first quarter ended October 29, 2005. The filing primarily serves as a notification of the release of this quarterly earnings information, with the detailed press release furnished as an exhibit. Investors should note that this report focuses on the dissemination of the earnings announcement, and the provided data includes both GAAP and non-GAAP (pro forma) financial measures. The company emphasizes that these non-GAAP measures are used internally and are presented to offer additional insights into financial and business trends, particularly concerning stock-based compensation expenses related to SFAS 123(R) and other specific adjustments. While the 8-K itself doesn't contain detailed financial figures beyond stating the reporting period, it directs investors to the accompanying press release (Exhibit 99.1) for the comprehensive breakdown of the quarter's performance. The company highlights its belief that presenting non-GAAP measures alongside GAAP figures provides valuable context for understanding operational performance and the impact of certain accounting adjustments, which is especially relevant as they begin to implement new accounting standards like SFAS 123(R).

Key Highlights

  • 1Cisco Systems (CSCO) filed an 8-K on November 9, 2005, reporting Q1 fiscal 2006 results.
  • 2The filing officially releases the company's financial performance for the quarter ended October 29, 2005.
  • 3A press release detailing the Q1 results is furnished as Exhibit 99.1 to this 8-K.
  • 4The report indicates the use of both GAAP and non-GAAP (pro forma) financial measures.
  • 5Cisco believes non-GAAP measures provide useful insights into financial and business trends.
  • 6Specific non-GAAP adjustments mentioned include stock-based compensation expense and payroll tax on stock option exercises.
  • 7The company notes the relevance of these non-GAAP measures as they adopt SFAS 123(R).

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally announce and report Cisco Systems' financial results for its fiscal first quarter ended October 29, 2005. It also serves to furnish the accompanying press release containing these detailed results.

The detailed financial numbers for the fiscal first quarter ended October 29, 2005, are provided in the press release furnished as Exhibit 99.1 to this 8-K filing. This 8-K filing itself does not contain the specific financial figures.

Non-GAAP (pro forma) measures are financial metrics that exclude certain items that are included in GAAP (Generally Accepted Accounting Principles) financial statements. Cisco uses these to provide additional insights into their financial performance, such as excluding stock-based compensation, payroll taxes on stock options, and other specific charges, which they believe helps management and investors understand underlying business trends.

Cisco mentions SFAS 123(R) because they are beginning to apply this accounting standard, which relates to stock-based compensation. They believe it's useful for investors to understand how expenses related to stock-based compensation, as dictated by SFAS 123(R), impact their financial statements, and thus present non-GAAP measures to show performance before these specific accounting adjustments.