8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 3, 2010)

Filed February 3, 2010For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on February 3, 2010, to report its financial results for the fiscal second quarter ended January 23, 2010. This filing primarily serves to furnish a press release and a CFO discussion transcript detailing these results. Investors should note that Cisco presented both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. The company clarified its methodology for non-GAAP reporting, excluding items such as share-based compensation expense, amortization of acquisition-related intangible assets, and other acquisition-related costs, which it believes are not reflective of ongoing operating results. While specific financial figures are detailed in the furnished exhibits, this 8-K highlights Cisco's commitment to providing investors with various perspectives on its performance. The exclusion of certain expenses from non-GAAP measures aims to offer insights into the company's core operational trends, though investors are advised to consider these alongside the GAAP figures for a comprehensive understanding. The company also noted changes in how it calculates non-GAAP net income per share and its exclusion of certain items in prior periods, demonstrating an evolving approach to financial transparency.

Key Highlights

  • 1Cisco Systems announced its fiscal second quarter 2010 financial results on February 3, 2010.
  • 2The 8-K filing includes a press release (Exhibit 99.1) and a CFO discussion transcript (Exhibit 99.2) detailing the Q2 2010 performance.
  • 3The company reported results using both GAAP and non-GAAP financial measures.
  • 4Cisco detailed specific items excluded from its non-GAAP calculations, including share-based compensation, acquisition-related intangibles, and other acquisition costs.
  • 5The rationale for excluding these items is to provide a clearer view of ongoing operating results, as these expenses are considered non-cash or not directly tied to core business operations.
  • 6Cisco noted changes to its non-GAAP calculations for fiscal 2010, specifically no longer using non-GAAP shares in the calculation of non-GAAP net income per share.
  • 7The company emphasized that non-GAAP measures should be reviewed in conjunction with corresponding GAAP measures for a complete financial picture.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco's financial results for its fiscal second quarter ended January 23, 2010. It formally announces these results and provides access to the detailed press release and CFO discussion transcript that contain the actual financial figures and management commentary.

Non-GAAP measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) figures. Cisco uses them to provide investors with a view of its financial and business trends that it believes are more reflective of ongoing operating results. These exclusions typically involve non-cash expenses (like share-based compensation) or costs related to acquisitions that are not considered part of day-to-day operations.

For this reporting period, Cisco excluded items such as share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, enhanced early retirement benefits (if applicable), and the related income tax effects. They also mention historical exclusions and potential future adjustments based on accounting guidance and business events.

No, Cisco explicitly states that non-GAAP measures are not a substitute for GAAP measures and should only be used in conjunction with the corresponding GAAP results. Investors should consider both sets of figures to gain a comprehensive understanding of the company's financial performance and condition.