8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Aug 5, 2009)

Filed August 5, 2009For Securities:CSCO

Summary

This Form 8-K filing from Cisco Systems, Inc. (CSCO) on August 5, 2009, primarily serves to announce the company's financial results for its fiscal fourth quarter and full fiscal year 2009, ending July 25, 2009. The report highlights the company's financial performance and operational condition, with a significant focus on the presentation of non-GAAP financial measures. These non-GAAP figures, which exclude items such as stock-based compensation, acquisition-related costs, and certain tax effects, are provided alongside GAAP measures to offer investors a clearer view of underlying business trends and management's internal performance evaluation. Investors should note that Cisco uses these non-GAAP measures to provide what it believes is useful information for evaluating operational trends, inventory management, and core business performance. The company explicitly details the specific items excluded from its non-GAAP calculations, such as employee share-based compensation and amortization of acquisition-related intangible assets, explaining their rationale for exclusion. While these non-GAAP measures offer a different perspective, it's crucial for investors to review them in conjunction with the corresponding GAAP figures to gain a comprehensive understanding of Cisco's financial health and operational results.

Key Highlights

  • 1Cisco Systems, Inc. reported its financial results for the fiscal fourth quarter and full fiscal year 2009.
  • 2The filing's primary purpose is to disseminate these financial results, which are detailed in an accompanying press release (Exhibit 99.1).
  • 3The company presents both GAAP and non-GAAP financial measures, including non-GAAP net income, non-GAAP earnings per share, and non-GAAP inventory turns.
  • 4Cisco emphasizes that non-GAAP measures are used to provide insight into financial and business trends and are not a substitute for GAAP.
  • 5Key excluded items in non-GAAP calculations include employee share-based compensation, in-process R&D, amortization of acquisition-related intangibles, and certain acquisition-related costs.
  • 6The company also excludes the income tax effects of these non-GAAP adjustments, along with significant effects of retroactive tax legislation and specific transfer pricing adjustments related to share-based compensation.
  • 7Management utilizes these non-GAAP measures for internal budgeting and reviewing financial results, believing they offer a better reflection of ongoing operating results.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Cisco Systems, Inc.'s financial results for its fiscal fourth quarter and full fiscal year ended July 25, 2009. These results are provided in an accompanying press release.

Non-GAAP financial measures are financial metrics that are not prepared in accordance with Generally Accepted Accounting Principles (GAAP). Cisco uses them, along with GAAP measures, to provide investors and management with additional insights into the company's financial and business trends, particularly regarding ongoing operational results and inventory management, by excluding certain non-cash or acquisition-related expenses.

Cisco typically excludes expenses such as employee share-based compensation, in-process research and development, amortization of acquisition-related intangible assets, other acquisition-related costs, and expenses related to enhanced early retirement programs. They also exclude the tax effects of these items and certain significant tax legislation or transfer pricing adjustments.

Investors should interpret non-GAAP information as supplementary data to the official GAAP financial statements. While Cisco believes these measures provide useful insights into operational trends, they should always be reviewed in conjunction with the corresponding GAAP measures to get a complete and accurate picture of the company's financial performance and condition.