8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Aug 10, 2011)

Filed August 10, 2011For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on August 10, 2011, primarily reports the company's financial results for its fiscal fourth quarter and full fiscal year 2011, which ended on July 30, 2011. The filing indicates that a press release detailing these results was issued on the same date, which is furnished as an exhibit. Notably, the report includes and discusses non-GAAP financial measures, such as non-GAAP net income, non-GAAP net income per share, and non-GAAP inventory turns. Cisco explains its rationale for using these non-GAAP figures, asserting that they provide investors with a more insightful view of underlying business trends by excluding items like share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs, significant asset impairments and restructurings, and income tax effects related to these items. Investors should carefully review these non-GAAP measures alongside the corresponding GAAP figures, as Cisco itself notes their limitations.

Key Highlights

  • 1Cisco Systems reported its fiscal fourth quarter and full fiscal year 2011 results on August 10, 2011.
  • 2The filing is primarily an update on the company's financial performance.
  • 3A press release detailing the results for the quarter and year ended July 30, 2011, is furnished as Exhibit 99.1.
  • 4The report includes non-GAAP financial metrics alongside GAAP figures.
  • 5Cisco explains its use of non-GAAP measures, including non-GAAP net income, net income per share, and inventory turns.
  • 6Excluded items from non-GAAP calculations include share-based compensation, acquisition-related costs, asset impairments, and restructuring charges.
  • 7The company emphasizes that non-GAAP measures are not a substitute for GAAP and have limitations.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Cisco Systems' financial results for its fiscal fourth quarter and full fiscal year 2011, which concluded on July 30, 2011. It also provides context and definitions for the non-GAAP financial measures used in the reporting.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) calculations. Cisco uses them, such as non-GAAP net income and inventory turns, to provide investors with a clearer view of the company's ongoing operational performance by excluding non-cash expenses (like share-based compensation) and costs related to acquisitions, impairments, or restructurings that may not reflect the core business's recurring results.

Cisco excludes several items from its non-GAAP measures, including share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs (such as professional fees and restructuring related to acquisitions), significant asset impairments and restructurings, and the associated income tax effects. Significant tax matters are also sometimes excluded.

Investors should view the non-GAAP information presented in this filing as supplementary to, and not a replacement for, the company's GAAP financial results. Cisco itself acknowledges that these measures have limitations and should be used in conjunction with the corresponding GAAP measures to gain a comprehensive understanding of the company's financial condition and performance trends.