8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 12, 2010)

Filed May 12, 2010For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc. (CSCO) on May 12, 2010, reports the company's financial results for its fiscal third quarter ended May 1, 2010. The filing primarily consists of furnishing a press release and a CFO video transcript detailing these results. Investors should note that Cisco is providing both GAAP and non-GAAP financial measures, with a detailed explanation of the adjustments made to arrive at the non-GAAP figures. The company highlights that it excludes items such as share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, enhanced early retirement benefits, and certain tax-related effects from its non-GAAP reporting. Cisco believes these non-GAAP measures offer investors useful insights into financial and business trends by excluding items that may not be indicative of ongoing operating results. However, investors are cautioned that these non-GAAP measures are not a substitute for GAAP measures and may differ from those reported by other companies.

Key Highlights

  • 1Cisco Systems reported its fiscal third quarter 2010 results on May 12, 2010.
  • 2The filing includes a press release (Exhibit 99.1) and a CFO video transcript (Exhibit 99.2) detailing the Q3 2010 results.
  • 3Cisco is presenting both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial results.
  • 4Key adjustments to non-GAAP measures include exclusion of share-based compensation expense, amortization of acquisition-related intangible assets, and other acquisition-related costs.
  • 5The company also excludes enhanced early retirement benefits and significant effects of retroactive tax legislation from its non-GAAP reporting.
  • 6Cisco believes these non-GAAP metrics provide valuable insights into ongoing operational performance and business trends.
  • 7Investors are advised that non-GAAP measures are not a substitute for GAAP and may not be comparable to other companies' reporting.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly report Cisco Systems, Inc.'s financial results for its fiscal third quarter ended May 1, 2010. It includes a press release and a transcript of the CFO's discussion of these results.

Non-GAAP measures are financial metrics that exclude certain items from the standard GAAP (Generally Accepted Accounting Principles) reporting. Cisco provides these measures because it believes they offer investors a clearer view of the company's ongoing operational performance and business trends by removing expenses that are not directly related to current operations, such as stock-based compensation or acquisition-related costs.

Cisco excludes several items from its non-GAAP measures, including share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, enhanced early retirement benefits, and certain income tax effects or retroactive tax legislation adjustments.

While Cisco believes non-GAAP measures are useful for investors, they are not a substitute for GAAP measures. These non-GAAP figures are not prepared in accordance with GAAP and may differ significantly from how other companies calculate their non-GAAP results. Investors should always consider both GAAP and non-GAAP information, along with the accompanying explanations, for a comprehensive understanding of Cisco's financial health.