8-KEarnings & Results

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

Filed May 8, 2007For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on May 8, 2007, to report its financial results for the fiscal third quarter ended April 28, 2007. The filing primarily serves to furnish a press release detailing these results, which is attached as Exhibit 99.1. Investors should note that this report emphasizes non-GAAP financial measures alongside GAAP figures, aiming to provide a clearer view of ongoing operational trends by excluding items such as share-based compensation, purchase accounting adjustments, payroll taxes on stock option exercises, and acquisition-related expenses. The company's management utilizes these non-GAAP measures for internal budgeting and performance evaluation, believing they offer valuable insights into financial and business trends, particularly regarding inventory management through non-GAAP inventory turns. While these non-GAAP figures are presented as supplementary information, they are not intended to be a substitute for GAAP measures and may differ from those reported by other companies.

Key Highlights

  • 1Cisco Systems reported its fiscal third quarter 2007 financial results on May 8, 2007, via an 8-K filing.
  • 2The filing furnishes a press release detailing the results for the quarter ended April 28, 2007.
  • 3The report includes a significant emphasis on non-GAAP financial measures in addition to GAAP results.
  • 4Non-GAAP measures are presented to provide insights into ongoing operational trends, excluding certain expenses and adjustments.
  • 5Excluded items from non-GAAP measures include share-based compensation, purchase accounting adjustments, payroll tax on stock option exercises, and acquisition-related expenses.
  • 6Non-GAAP inventory turns are specifically highlighted as a metric for assessing inventory management.
  • 7The company states that non-GAAP measures are for informational purposes and should be considered alongside GAAP results.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly report Cisco Systems' financial results for its fiscal third quarter ended April 28, 2007, and to furnish the accompanying press release which contains these details.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. Cisco provides them because management believes they offer a more useful view of the company's ongoing operating performance and business trends, by removing the impact of items they deem not reflective of core operations, such as stock-based compensation and acquisition-related costs.

The company states that its non-GAAP measures are not in accordance with GAAP and may differ from those used by other companies. While management believes they provide useful information, investors are advised to use these measures in conjunction with the corresponding GAAP measures for a comprehensive understanding of Cisco's financial condition and results of operations.

Cisco typically excludes items such as employee share-based compensation expense, impact to cost of sales from purchase accounting adjustments to inventory, payroll tax on stock option exercises, compensation expense related to acquisitions and investments, in-process research and development, amortization of purchased intangible assets, and significant gains/losses on publicly traded equity securities, along with their related income tax effects.