8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Aug 7, 2007)

Filed August 7, 2007For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc., dated August 7, 2007, primarily serves to report the company's financial results for its fiscal fourth quarter and full fiscal year ended July 28, 2007. The report itself does not contain the detailed financial figures but rather refers investors to an accompanying press release (Exhibit 99.1) for these figures. Investors should consult the referenced press release for specific revenue, profit, and earnings per share data. A significant portion of the filing is dedicated to explaining Cisco's use of non-GAAP financial measures. The company outlines various adjustments made to GAAP figures, including the exclusion of employee share-based compensation, purchase accounting adjustments, payroll taxes on stock options, acquisition-related expenses, in-process R&D, amortization of intangibles, gains/losses on equity securities, and certain tax effects. Cisco asserts that these non-GAAP measures provide a more useful view of ongoing operating results and financial trends for investors and management.

Key Highlights

  • 1Cisco Systems, Inc. (CSCO) reported its Q4 and full fiscal year 2007 financial results on August 7, 2007.
  • 2The detailed financial results are provided in an accompanying press release (Exhibit 99.1).
  • 3The filing clarifies Cisco's use of non-GAAP financial measures to present operating performance.
  • 4Key exclusions from GAAP to arrive at non-GAAP figures include share-based compensation and acquisition-related costs.
  • 5Cisco believes non-GAAP measures offer insights into ongoing business trends and operational performance.
  • 6The company's management utilizes these non-GAAP measures for internal budgeting and performance review.

Frequently Asked Questions

The specific financial results, including revenue, profit, and earnings per share, are detailed in the press release issued by Cisco Systems, Inc. on August 7, 2007, which is furnished as Exhibit 99.1 to this 8-K filing.

Cisco states that it uses non-GAAP financial measures to provide investors and management with a clearer view of financial and business trends relating to its financial condition and results of operations. They believe these measures, when viewed alongside GAAP results, offer insights into ongoing operating results by excluding items that may not be directly reflective of day-to-day business activities.

Cisco excludes several items, including but not limited to: employee share-based compensation expense, impact from purchase accounting for acquisitions, payroll tax on stock option exercises, acquisition and investment-related compensation expenses, in-process R&D, amortization of purchased intangible assets, significant gains/losses on publicly traded equity securities, and certain tax effects related to these items or retroactive tax legislation.

No, the non-GAAP measures presented are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP) and may differ from similar measures used by other companies. Cisco explicitly states these measures should only be used to evaluate their results in conjunction with the corresponding GAAP measures.