8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 9, 2011)

Filed November 9, 2011For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on November 9, 2011, to report its financial results for the fiscal first quarter of 2012, which ended on October 29, 2011. The report primarily serves to furnish the press release detailing these results, which is included as an exhibit. A key aspect of this filing is Cisco's use and explanation of non-GAAP financial measures. The company emphasizes that these non-GAAP figures, including non-GAAP net income, net income per share, and inventory turns, are provided to offer additional insights into financial and business trends. Investors should note that Cisco explicitly states these non-GAAP measures are not prepared in accordance with GAAP and may differ from those used by other companies. The company details the specific items excluded from its GAAP results to arrive at non-GAAP figures, such as 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 tax matters. Cisco's management uses these non-GAAP measures internally for budgeting and performance review, believing they provide a clearer view of ongoing operating results.

Key Highlights

  • 1Cisco Systems reported its fiscal first quarter 2012 results ended October 29, 2011, via an 8-K filing on November 9, 2011.
  • 2The filing includes a press release (Exhibit 99.1) detailing the company's operational and financial performance for the quarter.
  • 3Cisco utilizes and explains non-GAAP financial measures, including net income, net income per share, and inventory turns.
  • 4The company believes these non-GAAP measures provide valuable insights into financial and business trends alongside GAAP results.
  • 5Specific items excluded from GAAP to calculate non-GAAP measures are detailed, including share-based compensation and acquisition-related costs.
  • 6Management uses non-GAAP figures for internal budgeting and to assess ongoing operating results.
  • 7The filing emphasizes that non-GAAP measures are not a substitute for GAAP and may differ from other companies' metrics.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Cisco Systems' financial results for its fiscal first quarter of 2012, which concluded on October 29, 2011. It serves to furnish the press release containing these results.

Non-GAAP financial measures are financial metrics that exclude certain items that are included in GAAP (Generally Accepted Accounting Principles) results. Cisco provides them, such as non-GAAP net income and non-GAAP net income per share, because management believes they offer useful insights into the company's ongoing financial and business trends, particularly by excluding items like share-based compensation and acquisition-related costs that may not reflect the core operational performance in a given period.

Cisco excludes several items from its GAAP results to calculate non-GAAP measures. These include 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, the income tax effects of these items, and significant tax matters. The company may also exclude other items in the future if deemed appropriate.

No, Cisco explicitly states that its non-GAAP measures are not prepared in accordance with GAAP and may differ from non-GAAP measures used by other companies. They are provided as supplemental information to GAAP results and should be viewed in conjunction with the corresponding GAAP figures.