8-KOther EventsExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Mar 9, 2011)

Filed March 9, 2011For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on March 9, 2011, primarily to announce and detail changes in its reportable business segments and product categorization. The company has consolidated its Asia Pacific and Japan operations into a single 'Asia Pacific Markets' segment, resulting in four primary geographic segments: United States and Canada, European Markets, Emerging Markets, and Asia Pacific Markets. This move is intended to achieve operational efficiencies. Additionally, Cisco has refined its product categorization. A new 'New Products' category has been established, encompassing collaboration, data center, security, wireless, and video connected home products. This new category replaces the 'Advanced Technologies' segment and incorporates some items previously under 'Other Products.' The 'Other Products' category will now primarily consist of optical networking products and emerging technologies. These changes are retrospective, with prior period financial information being reclassified to align with the new segment and product structures. Importantly, Cisco states that these reclassifications do not alter previously reported consolidated operating results, financial condition, or cash flows.

Key Highlights

  • 1Cisco Systems has restructured its geographic reporting segments by combining Asia Pacific and Japan operations into a single 'Asia Pacific Markets' segment.
  • 2The company now reports under four geographic segments: United States and Canada, European Markets, Emerging Markets, and Asia Pacific Markets.
  • 3A new 'New Products' category has been introduced, consolidating key growth areas like collaboration, data center, security, wireless, and video connected home.
  • 4The 'New Products' category replaces the former 'Advanced Technologies' segment.
  • 5Prior period financial data has been reclassified to conform to the new segment and product reporting structure.
  • 6These changes are aimed at achieving operational efficiencies and improving reporting clarity.
  • 7Cisco confirms that these reclassifications do not change previously reported consolidated financial results, financial condition, or cash flows.

Frequently Asked Questions

Cisco is changing its reporting segments and product categories to achieve operational efficiencies and to refine the presentation of its business, particularly by grouping related growth products into a new 'New Products' category.

No, Cisco explicitly states that these reclassifications do not alter its previously reported consolidated operating results, financial condition, or cash flows. Prior period data has been restated for comparative purposes only.

The 'New Products' category includes products related to collaboration, data center, security, wireless, and video connected home. It replaces the 'Advanced Technologies' segment and also incorporates some items previously classified under 'Other Products'.

Previously, Cisco reported separate segments for Asia Pacific and Japan. Now, these have been combined into a single 'Asia Pacific Markets' segment, resulting in a total of four geographic segments: United States and Canada, European Markets, Emerging Markets, and Asia Pacific Markets.