8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Aug 11, 2010)

Filed August 11, 2010For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on August 11, 2010, to report its financial results for the fourth quarter and full fiscal year 2010, ending July 31, 2010. The filing primarily serves to furnish a press release and a CFO video transcript detailing these results. Investors should note that Cisco is presenting both GAAP and non-GAAP financial measures, with detailed explanations provided for the adjustments made to arrive at non-GAAP figures. These adjustments include exclusions for share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, significant asset impairments and restructurings, and certain tax-related items. The company emphasizes that its non-GAAP measures are not intended to be a substitute for GAAP but are provided to offer investors and management with additional insights into financial and business trends. These non-GAAP measures are used internally for budgeting and reviewing financial results, aiming to present a clearer view of ongoing operating performance by excluding items not directly tied to core business operations or that are non-cash in nature. Investors are encouraged to review these non-GAAP figures in conjunction with the corresponding GAAP measures for a comprehensive understanding.

Key Highlights

  • 1Cisco Systems (CSCO) reported Q4 and full fiscal year 2010 results on August 11, 2010.
  • 2The 8-K filing includes a press release (Exhibit 99.1) and CFO video transcript (Exhibit 99.2) detailing the financial performance.
  • 3Cisco is presenting both GAAP and non-GAAP financial results.
  • 4Non-GAAP adjustments exclude items such as share-based compensation, acquisition-related costs (amortization, other costs), asset impairments/restructurings, and certain tax effects.
  • 5The company believes non-GAAP measures offer additional insight into financial and business trends, focusing on ongoing operating results.
  • 6Non-GAAP measures are used internally for budgeting and financial review.
  • 7Investors are advised to consider non-GAAP measures alongside GAAP results for a complete financial picture.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems' financial results for its fourth fiscal quarter and the full fiscal year 2010, which ended on July 31, 2010. It also serves to furnish the accompanying press release and a transcript of the CFO's discussion of these results.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. Cisco provides them because it believes they offer investors and management additional insights into the company's ongoing operating performance and financial trends by excluding items such as share-based compensation, acquisition-related costs, and restructuring charges, which may not be reflective of day-to-day business operations.

Cisco excludes several items from its non-GAAP measures, including share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, significant asset impairments and restructurings, the income tax effects of these items, significant effects of retroactive tax legislation, and significant transfer pricing adjustments related to share-based compensation.

Investors should interpret the non-GAAP information as supplementary to, not a replacement for, the company's GAAP financial statements. Cisco itself states that these measures have limitations and should only be used to evaluate the company's results in conjunction with the corresponding GAAP measures. They are intended to provide a different perspective on financial and business trends.