8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Aug 14, 2013)

Filed August 14, 2013For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on August 14, 2013, to report its financial results for the fourth quarter and full fiscal year 2013, which ended on July 27, 2013. The filing primarily serves to furnish a press release detailing these results, which are presented on both a GAAP and non-GAAP basis. Investors should note that Cisco utilizes non-GAAP measures to provide a clearer view of its operational performance by excluding certain non-recurring or non-cash items such as share-based compensation, amortization of acquisition-related intangibles, and other acquisition/restructuring costs. The company believes these non-GAAP metrics offer valuable insights into business trends alongside the standard GAAP reporting. While the specific financial figures are detailed in the accompanying press release (Exhibit 99.1), the 8-K emphasizes Cisco's methodology for calculating non-GAAP results. This includes detailed explanations of the adjustments made, such as excluding the impact of share-based compensation, amortization of acquired intangibles, and acquisition/divestiture related costs. Cisco also clarifies that these non-GAAP measures may differ from those used by other companies and should be considered in conjunction with GAAP figures. The filing also mentions a significant litigation settlement with TiVo, Inc. impacting GAAP results for the quarter.

Key Highlights

  • 1Cisco Systems, Inc. reported its Q4 and full fiscal year 2013 results on August 14, 2013.
  • 2The 8-K filing includes a press release (Exhibit 99.1) with detailed financial results for the period ended July 27, 2013.
  • 3Cisco presents its financial results using both Generally Accepted Accounting Principles (GAAP) and non-GAAP measures.
  • 4Non-GAAP results exclude items such as share-based compensation expense and amortization of acquisition-related intangible assets.
  • 5The company believes non-GAAP measures provide useful insights into business and financial trends by excluding certain non-recurring or non-cash expenses.
  • 6Adjustments for non-GAAP calculations are clearly defined, including acquisition/divestiture costs and significant asset impairments/restructurings.
  • 7A significant litigation settlement with TiVo, Inc. is noted as impacting GAAP results for the fourth quarter of fiscal 2013.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s financial results for its fourth fiscal quarter and the full fiscal year 2013, which ended on July 27, 2013. It includes a press release detailing these results.

Non-GAAP measures are financial metrics that exclude certain items from GAAP results, such as share-based compensation, amortization of acquisition-related intangibles, and acquisition/restructuring costs. Cisco uses them because management believes these measures provide a more useful and comparable view of the company's ongoing operational performance and business trends by removing the impact of certain non-recurring or non-cash expenses.

Cisco's non-GAAP calculations typically exclude share-based compensation expense, amortization of acquisition-related intangible assets, impacts from purchase accounting adjustments to inventory, other acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements, and the related income tax effects. They may also exclude significant tax matters.

Investors should interpret these non-GAAP results as supplementary information that aims to provide a clearer picture of operational performance. It is crucial to analyze these non-GAAP figures alongside the corresponding GAAP results, as stated by Cisco, and to understand the specific adjustments made. These non-GAAP measures are not standardized across all companies and should not be used as a sole basis for investment decisions.