8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 13, 2012)

Filed November 13, 2012For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on November 13, 2012, primarily serves to report the company's financial results for its fiscal first quarter ended October 27, 2012. The report highlights the company's performance and provides supplemental financial information, including non-GAAP measures. Investors should note that while GAAP results are the primary reporting standard, Cisco also presents non-GAAP net income, non-GAAP net income per share, and non-GAAP inventory turns to offer insights into underlying business trends. The company details the specific adjustments made to arrive at its non-GAAP figures, such as excluding share-based compensation expense, amortization of acquisition-related intangible assets, purchase accounting adjustments, and other acquisition-related costs. These exclusions are made to present a clearer view of ongoing operational performance, free from the impact of acquisitions and non-cash accounting items. The disclosure emphasizes that these non-GAAP measures are not a substitute for GAAP and may differ from those presented by other companies.

Key Highlights

  • 1Cisco Systems reported its financial results for the fiscal first quarter of 2013, ended October 27, 2012.
  • 2The filing includes a press release (Exhibit 99.1) detailing these results.
  • 3Cisco provided non-GAAP net income and non-GAAP net income per share data, alongside GAAP figures.
  • 4The company also presented non-GAAP inventory turns as a metric for operational efficiency.
  • 5Key non-GAAP adjustments include excluding share-based compensation, amortization of acquisition-related intangibles, and other acquisition-related costs.
  • 6These non-GAAP measures are intended to provide a clearer view of ongoing operational performance and business trends.
  • 7The company explicitly states that non-GAAP measures are not in accordance with GAAP and should be viewed in conjunction with GAAP results.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to report Cisco Systems, Inc.'s financial results for its fiscal first quarter ended October 27, 2012, as detailed in an accompanying press release (Exhibit 99.1).

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) results. Cisco presents non-GAAP net income, non-GAAP net income per share, and non-GAAP inventory turns to provide investors with a view of the company's operational performance and business trends that may be clearer without the impact of certain non-cash expenses (like share-based compensation) or acquisition-related costs. Cisco believes these measures offer useful supplemental information when considered alongside their GAAP counterparts.

Cisco typically excludes items such as share-based compensation expense, amortization of acquisition-related intangible assets, impacts to cost of sales from purchase accounting adjustments to inventory, other acquisition-related costs, significant asset impairments and restructurings, and the income tax effects of these items. They may also exclude significant tax matters. The company states these are excluded because they are not believed to be reflective of ongoing operating results or are not directly correlated to the core operations of the business.

No, investors should not rely solely on non-GAAP financial results. Cisco explicitly states that these non-GAAP measures are not prepared in accordance with GAAP and may differ from similar measures used by other companies. They are intended to be used as supplemental information and should be evaluated in conjunction with the corresponding GAAP measures to gain a comprehensive understanding of the company's financial condition and results of operations.