8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 6, 2007)

Filed February 6, 2007For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc. on February 6, 2007, primarily serves to furnish a press release detailing the company's financial results for its fiscal second quarter ended January 27, 2007. Investors should note that the filing includes both GAAP and non-GAAP financial measures. The company explicitly states its belief that these non-GAAP measures provide valuable insights into financial and business trends, especially when viewed alongside GAAP figures. The key differentiator highlighted is Cisco's methodology for calculating non-GAAP results. The company excludes several items, including share-based compensation, purchase accounting adjustments, payroll taxes on stock option exercises, acquisition-related expenses, in-process R&D, amortization of intangibles, and gains/losses on equity securities. These exclusions are justified by Cisco as non-cash, uncontrollable, or not reflective of ongoing operational performance. Investors should carefully review the detailed explanations for each exclusion provided in the filing.

Key Highlights

  • 1Cisco Systems reported its fiscal second quarter 2007 results on February 6, 2007.
  • 2The 8-K filing includes a press release containing these financial results.
  • 3Both GAAP and non-GAAP financial measures are presented, with a focus on the latter for operational insights.
  • 4Key excluded items from non-GAAP measures include share-based compensation, acquisition-related costs, and amortization of intangibles.
  • 5Cisco believes non-GAAP measures offer a better view of ongoing operational performance and business trends.
  • 6The company details its rationale for excluding specific items, citing their non-cash nature, lack of operational control, or unsuitability for evaluating current business performance.
  • 7The filing emphasizes that non-GAAP measures are not a substitute for GAAP and should be considered in conjunction with them.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Cisco Systems' financial results for its fiscal second quarter ended January 27, 2007, by furnishing the accompanying press release.

Cisco presents both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. The company believes its non-GAAP measures provide useful insights into financial and business trends when analyzed alongside GAAP results.

Cisco excludes items such as share-based compensation, purchase accounting adjustments, acquisition-related costs, and amortization of intangibles because it considers them to be non-cash expenses, not directly related to ongoing operations, subject to management's lack of control, or not reflective of the company's core business performance.

No, Cisco explicitly states that its non-GAAP measures are not in accordance with, or an alternative for, GAAP. They should only be used to evaluate the company's results in conjunction with the corresponding GAAP measures and are not based on a comprehensive set of accounting rules.