8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 11, 2011)

Filed May 11, 2011For Securities:CSCO

Summary

This 8-K filing by Cisco Systems, Inc. (CSCO), dated May 11, 2011, reports its financial results for the fiscal third quarter ended April 30, 2011. The filing primarily consists of a press release (Exhibit 99.1) detailing these results. Investors should note that Cisco is presenting both GAAP and non-GAAP financial measures. The non-GAAP measures, which exclude items like share-based compensation expense, amortization of acquisition-related intangible assets, and restructuring costs, are provided to offer investors a view of underlying operational trends. While the filing does not provide the actual financial numbers within the 8-K text itself (as they are in the furnished press release), it clearly outlines the rationale behind the non-GAAP adjustments. Cisco's management uses these non-GAAP figures for internal budgeting and performance review, believing they better reflect ongoing operating results by removing the impact of non-cash expenses, acquisition-related costs, and significant one-time events. Investors are advised to review these non-GAAP measures in conjunction with the corresponding GAAP figures to gain a comprehensive understanding of the company's financial performance.

Key Highlights

  • 1Cisco Systems reported its fiscal third quarter 2011 results on May 11, 2011.
  • 2The report is primarily a furnishing of a press release (Exhibit 99.1) detailing the quarterly financial results.
  • 3Cisco is presenting both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures to investors.
  • 4Non-GAAP measures are provided to offer a view of ongoing operational performance, excluding certain expenses.
  • 5Key exclusions from non-GAAP measures include share-based compensation expense and amortization of acquisition-related intangible assets.
  • 6Restructuring charges, asset impairments, and significant tax effects are also excluded from non-GAAP calculations.
  • 7Cisco's management utilizes these non-GAAP metrics for internal budgeting and performance assessment.
  • 8Investors are encouraged to analyze non-GAAP results alongside GAAP results for a complete financial picture.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Cisco Systems' financial results for its fiscal third quarter ended April 30, 2011. It includes a press release that contains the detailed financial information.

Cisco provides non-GAAP financial measures to give investors a clearer view of the company's ongoing operational performance. These measures exclude certain expenses such as share-based compensation, acquisition-related costs, and restructuring charges, which management believes are not reflective of the core, day-to-day business operations.

Cisco's non-GAAP calculations typically exclude share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, significant asset impairments and restructurings, income tax effects of these items, and significant retroactive tax legislation effects. The specific exclusions can vary and are detailed in the press release furnished with this report.

No, investors should not rely solely on non-GAAP numbers. Cisco emphasizes that these non-GAAP measures are not a substitute for GAAP measures and may differ from those used by other companies. They are intended to be used in conjunction with the corresponding GAAP measures to provide a more comprehensive understanding of the company's financial condition and results of operations.