Summary
This Form 8-K filing by Cisco Systems, Inc. on November 10, 2010, primarily serves to report the company's financial results for its fiscal first quarter ended October 30, 2010. The filing includes a press release (Exhibit 99.1) detailing these operational outcomes. A key aspect of this report is Cisco's continued use of non-GAAP financial measures, which exclude items such as share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, significant asset impairments and restructurings, and related tax effects. The company believes these non-GAAP measures offer valuable insights into underlying business trends and operational performance, supplementing the standard GAAP reporting.
Key Highlights
- 1Cisco Systems reported its financial results for the fiscal first quarter ended October 30, 2010.
- 2The company provided a press release (Exhibit 99.1) detailing these quarterly results.
- 3Cisco continues to present non-GAAP financial measures alongside GAAP measures.
- 4Key exclusions from non-GAAP measures include share-based compensation expense and acquisition-related costs.
- 5Amortization of acquisition-related intangible assets is also excluded from non-GAAP reporting.
- 6Significant asset impairments, restructurings, and related income tax effects are excluded from non-GAAP calculations.
- 7The company asserts that these non-GAAP measures provide useful information to investors regarding financial and business trends.
Frequently Asked Questions
The primary purpose of this Form 8-K filing is to announce and report Cisco Systems, Inc.'s financial results for its fiscal first quarter ended October 30, 2010, as detailed in an accompanying press release.
Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) measures. Cisco uses them, alongside GAAP measures, because management believes they provide a clearer view of the company's ongoing operational performance and financial trends by excluding items that may not be directly reflective of core business activities, such as share-based compensation and acquisition-related costs.
In this report, Cisco excludes items such as 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.
Cisco states that its non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may differ from non-GAAP measures used by other companies. Investors should review these measures in conjunction with Cisco's GAAP financial statements for a complete understanding.