8-KEarnings & Results

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

Filed November 7, 2007For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on November 7, 2007, to report its financial results for the fiscal first quarter ended October 27, 2007. The filing includes a press release detailing the company's operational performance and financial condition. A key aspect of this report is Cisco's presentation of non-GAAP financial measures alongside their GAAP counterparts. These non-GAAP measures are intended to provide investors with a clearer view of the company's ongoing operational performance by excluding items such as employee share-based compensation, purchase accounting adjustments, payroll taxes on stock option exercises, acquisition-related expenses, in-process R&D, amortization of intangible assets, gains/losses on equity securities, and certain tax effects. Management utilizes these non-GAAP metrics for internal budgeting and performance review, believing they offer valuable insights into financial and business trends related to operations and inventory management. Investors are encouraged to review these non-GAAP figures in conjunction with the standard GAAP reporting to gain a comprehensive understanding of Cisco's financial health and operational efficiency during the reported quarter. The filing emphasizes that these non-GAAP measures are not a substitute for GAAP and may differ from similar measures used by other companies.

Key Highlights

  • 1Cisco Systems reported its Q1 fiscal year 2008 results on November 7, 2007.
  • 2The 8-K filing primarily furnishes a press release detailing the Q1 results.
  • 3Cisco is providing non-GAAP financial measures, including non-GAAP net income and EPS.
  • 4The company explains its rationale for using non-GAAP measures, citing usefulness for investors and management in understanding operational trends.
  • 5Excluded items from non-GAAP measures include employee share-based compensation, purchase accounting adjustments, payroll tax on stock options, acquisition costs, in-process R&D, and amortization of intangibles.
  • 6Non-GAAP inventory turns are also presented to offer insights into inventory management.
  • 7Management uses these non-GAAP measures for internal budgeting and performance review.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Cisco Systems' financial results for its first fiscal quarter ended October 27, 2007, and to furnish the accompanying press release detailing these results.

Non-GAAP financial measures are financial performance indicators that exclude certain items from the corresponding GAAP (Generally Accepted Accounting Principles) measures. Cisco presents these to provide investors and management with a clearer view of the company's ongoing operational performance and business trends, excluding items they believe are not reflective of core operations or are unpredictable, such as stock-based compensation and acquisition-related costs.

Cisco excludes several items, including employee share-based compensation expense, impact to cost of sales from purchase accounting adjustments, payroll tax on stock option exercises, compensation expense related to acquisitions and investments, in-process research and development, amortization of purchased intangible assets, significant gains and losses on publicly traded equity securities, and certain related tax effects.

No, Cisco explicitly states that its non-GAAP measures are not in accordance with, or an alternative for, GAAP. They are intended to be used in conjunction with the corresponding GAAP measures to provide additional insights, and investors should not consider them as a replacement for GAAP reporting.