8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 9, 2012)

Filed May 9, 2012For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on May 9, 2012, to report its financial results for the third fiscal quarter of 2012, which ended on April 28, 2012. The primary purpose of this filing was to furnish the press release detailing these results as an exhibit. The report emphasizes the company's use of non-GAAP financial measures, explaining that these are presented alongside GAAP figures to provide investors with a clearer view of underlying business trends and operational performance. The company outlines specific adjustments made to arrive at these non-GAAP figures. These exclusions primarily include 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 believes these adjustments offer a more consistent and comparable view of its ongoing operational results by removing items it deems to be non-recurring or not directly tied to core business activities.

Key Highlights

  • 1Cisco Systems reported its Q3 2012 financial results on May 9, 2012.
  • 2The 8-K filing primarily served to submit the press release containing the Q3 2012 earnings.
  • 3The company provided both GAAP and non-GAAP financial measures in its reporting.
  • 4Non-GAAP measures are used to provide investors with insights into ongoing operational performance.
  • 5Key exclusions for non-GAAP calculations include share-based compensation, acquisition-related costs, and restructuring charges.
  • 6Cisco management utilizes these non-GAAP measures for internal budgeting and financial review.
  • 7The company reserves the right to exclude other items in the future if deemed relevant for investor understanding.

Frequently Asked Questions

The main purpose of this 8-K filing is to formally report Cisco Systems' financial results for its fiscal third quarter ended April 28, 2012, by furnishing the accompanying press release.

Cisco presents non-GAAP financial measures to offer investors additional insights into the company's financial and business trends. They believe these measures provide a clearer view of ongoing operating results by excluding items that may not be directly reflective of core business performance, such as share-based compensation and acquisition-related expenses.

Cisco excludes several types of expenses from its non-GAAP measures, including share-based compensation expense, amortization of acquisition-related intangible assets, other acquisition-related costs (like professional fees and restructuring related to acquisitions), significant asset impairments and restructurings, the income tax effects of these items, and significant tax matters.

No, the non-GAAP measures presented by Cisco are not prepared in accordance with Generally Accepted Accounting Principles (GAAP) and may differ from those used by other companies. Cisco emphasizes that these non-GAAP measures should be used in conjunction with, not as an alternative to, the corresponding GAAP measures.