8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 8, 2012)

Filed February 8, 2012For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. on February 8, 2012, primarily announces the company's financial results for its second fiscal quarter of 2012, which ended on January 28, 2012. The report includes a press release detailing these results, which is furnished as an exhibit. Investors should note that the filing emphasizes the use of non-GAAP financial measures alongside GAAP figures, explaining that these adjustments (such as excluding share-based compensation, acquisition-related costs, and restructuring charges) are used to provide a clearer view of ongoing operational performance and business trends. The company explicitly states its belief that presenting non-GAAP net income, non-GAAP net income per share, and non-GAAP inventory turns offers valuable insights to investors and management. This approach aims to highlight the core business operations by removing one-time or non-cash items that may not reflect the company's recurring profitability or operational efficiency. Investors are cautioned that these non-GAAP measures are not standardized and should be reviewed in conjunction with the official GAAP financial statements.

Key Highlights

  • 1Cisco Systems, Inc. reported its financial results for the second fiscal quarter ended January 28, 2012, via an 8-K filing on February 8, 2012.
  • 2The filing includes a press release (Exhibit 99.1) containing the detailed Q2 2012 financial results.
  • 3Cisco utilizes and presents non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per share, and non-GAAP inventory turns.
  • 4These non-GAAP measures exclude items such as share-based compensation expense, amortization of acquisition-related intangible assets, and other acquisition-related costs.
  • 5Significant asset impairments, restructurings, and certain tax matters are also excluded from non-GAAP calculations when significant.
  • 6The company believes these non-GAAP metrics provide useful insights into ongoing operational performance and business trends for investors and management.
  • 7Investors are advised that non-GAAP measures are not a substitute for GAAP reporting and may differ from measures used by other companies.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s financial results for its second fiscal quarter of 2012, which ended on January 28, 2012. It includes a press release detailing these results.

Non-GAAP financial measures are financial metrics that exclude certain items from the company's GAAP (Generally Accepted Accounting Principles) results. Cisco uses them, such as non-GAAP net income and non-GAAP earnings per share, to provide investors with a view of its ongoing operational performance and business trends, excluding the impact of items like share-based compensation, acquisition-related costs, and restructuring charges, which are often non-cash or not reflective of recurring operations.

Cisco typically excludes share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs (like professional fees and changes in contingent consideration), significant asset impairments and restructurings, and the associated income tax effects. Significant tax matters may also be excluded. The company states that these exclusions are intended to present measures that are more reflective of ongoing operating results.

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. Investors should carefully review Cisco's explanations and the accompanying GAAP figures to understand the differences and ensure a proper comparison.