8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 6, 2009)

Filed May 6, 2009For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K report on May 6, 2009, to disclose its financial results for the fiscal third quarter ended April 25, 2009. The report primarily serves as an announcement of these results, which are detailed in an accompanying press release (Exhibit 99.1). Investors should note that the filing emphasizes the use of non-GAAP financial measures alongside GAAP figures. The company uses these non-GAAP measures, which exclude items such as employee share-based compensation expense, acquisition-related expenses, in-process R&D, and amortization of acquisition-related intangibles, to provide what it believes is a clearer view of ongoing operating results and inventory management trends. While these non-GAAP figures are presented to offer additional insights, investors are cautioned that they are not prepared in accordance with GAAP and may differ from measures used by other companies. The report also notes that Cisco is adjusting its non-GAAP reporting by no longer excluding payroll tax on stock option exercises, effective this quarter.

Key Highlights

  • 1Cisco announced its fiscal third quarter 2009 earnings results on May 6, 2009.
  • 2The company is providing both GAAP and non-GAAP financial results for the quarter.
  • 3Non-GAAP measures exclude items such as share-based compensation, acquisition costs, and amortization of intangibles.
  • 4Cisco believes non-GAAP measures offer a better view of ongoing operational performance and inventory management.
  • 5The company is modifying its non-GAAP reporting by no longer excluding payroll tax on stock option exercises.
  • 6Investors should review GAAP results in conjunction with non-GAAP measures for a complete understanding.
  • 7The accompanying press release (Exhibit 99.1) contains the detailed financial information.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s financial results for its fiscal third quarter ended April 25, 2009. It includes a press release detailing these results.

Cisco presents non-GAAP financial measures because management believes they provide useful information to investors and management regarding financial and business trends that reflect ongoing operating results. These measures exclude items like employee share-based compensation, acquisition-related costs, and amortization of intangibles, which are considered non-cash or not directly related to ongoing operations.

No, the non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles (GAAP). They may differ from non-GAAP measures used by other companies and should be used in conjunction with the corresponding GAAP measures for a comprehensive view of Cisco's financial performance.

Yes, effective in the third quarter of fiscal 2009, Cisco is no longer excluding payroll tax on stock option exercises from its non-GAAP financial measures. In the past, other items were excluded but are no longer, and the company states it may exclude other items in the future.