Summary
This Form 8-K filing by Cisco Systems, Inc. (CSCO) on February 13, 2013, announces the company's financial results for its fiscal second quarter ended January 26, 2013. The report includes a press release detailing these results, which provides investors with key performance indicators for the period. A significant aspect of this filing is Cisco's use and explanation of non-GAAP financial measures, which are presented alongside their GAAP counterparts to offer a clearer view of ongoing operational trends. Investors should pay close attention to these non-GAAP adjustments, as they are used by management to assess business performance and for internal budgeting processes.
Key Highlights
- 1Cisco Systems reported its fiscal second quarter 2013 financial results on February 13, 2013.
- 2The filing's primary purpose is to provide information about the company's financial condition and results of operations for the quarter.
- 3Cisco utilizes and discloses non-GAAP financial measures in addition to GAAP measures.
- 4Non-GAAP measures exclude items such as share-based compensation, amortization of acquisition-related intangibles, and other acquisition/restructuring costs.
- 5The company believes these non-GAAP measures offer useful insights into financial and business trends, aiding investor and management understanding of ongoing operating results.
- 6Management uses these non-GAAP metrics for internal budgeting and reviewing financial results.
- 7The press release containing the detailed financial results is attached as Exhibit 99.1.
Frequently Asked Questions
The main purpose of this 8-K filing is to report Cisco Systems' financial results for its fiscal second quarter ended January 26, 2013. It includes a press release that details the company's performance for the period.
Cisco presents non-GAAP measures because management believes they provide useful information to investors and themselves about ongoing business trends and operational results. These measures exclude certain expenses like share-based compensation and acquisition-related costs, which management does not consider reflective of regular, day-to-day operations.
Cisco typically excludes expenses such as share-based compensation, amortization of acquisition-related intangible assets, purchase accounting adjustments to inventory, other acquisition-related/divestiture costs, significant asset impairments and restructurings, and the related income tax effects. They may also exclude significant tax matters if deemed not reflective of ongoing operations.
No, Cisco explicitly states that these non-GAAP measures are not a substitute for or an alternative to measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). They are intended to be used in conjunction with GAAP measures to provide a more comprehensive understanding of the company's financial performance.