8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 15, 2013)

Filed May 15, 2013For Securities:CSCO

Summary

This 8-K filing from Cisco Systems, Inc., dated May 15, 2013, announces the company's financial results for its third fiscal quarter ended April 27, 2013. The report primarily serves to furnish the press release detailing these results, which is provided as an exhibit. Investors should note that Cisco is presenting both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures. The company believes these non-GAAP measures, which exclude items like share-based compensation expense, amortization of acquisition-related intangible assets, and certain acquisition/divestiture costs, provide a more useful view of ongoing operational trends and financial performance to investors and management. The filing also clarifies the specific exclusions used in their non-GAAP reporting, explaining why each item is considered not reflective of ongoing business operations. This includes detailed explanations for excluding share-based compensation, amortization of intangibles, purchase accounting adjustments to inventory, acquisition/divestiture costs, significant asset impairments/restructurings, and certain tax matters. Cisco emphasizes that these non-GAAP measures are not a substitute for GAAP and may differ from similar measures used by other companies. Investors are encouraged to review these non-GAAP results in conjunction with the corresponding GAAP figures to gain a comprehensive understanding of Cisco's financial health and operational performance.

Key Highlights

  • 1Cisco Systems, Inc. reported its third fiscal quarter 2013 results on May 15, 2013.
  • 2The 8-K filing includes a press release (Exhibit 99.1) detailing the financial results.
  • 3The company is presenting both GAAP and non-GAAP financial measures.
  • 4Non-GAAP measures exclude items such as share-based compensation, acquisition-related intangibles amortization, and restructuring costs.
  • 5Cisco believes non-GAAP measures offer insights into ongoing business trends and operating results.
  • 6The company defines and explains the specific adjustments made to arrive at its non-GAAP figures.
  • 7Investors are advised to consider non-GAAP results alongside GAAP measures for a complete financial picture.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Cisco Systems, Inc.'s financial results for its third fiscal quarter ended April 27, 2013, by furnishing the press release containing these results.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) calculations. Cisco uses them because management believes they provide a more useful view of ongoing business trends and operating results by excluding costs such as share-based compensation and acquisition-related expenses that may not be reflective of the company's core, day-to-day operations.

Cisco typically excludes items such as share-based compensation expense, amortization of acquisition-related intangible assets, impact to cost of sales from purchase accounting adjustments to inventory, other acquisition-related/divestiture costs, significant asset impairments and restructurings, and significant tax matters. The specific exclusions are detailed in the filing.

No, non-GAAP results are not the same as GAAP results. They are alternative measures that exclude certain items, and Cisco states they are not in accordance with, or an alternative for, measures prepared in accordance with GAAP. Investors should always review both GAAP and non-GAAP figures to get a complete understanding.