8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 13, 2013)

Filed November 13, 2013For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on November 13, 2013, to report its financial results for the fiscal first quarter of 2014, which ended on October 26, 2013. The filing primarily serves as a notification of the release of their earnings press release (Exhibit 99.1), which contains detailed operational and financial data for the quarter. An important aspect of this filing is Cisco's continued use and explanation of non-GAAP financial measures. The company elaborates on the specific adjustments made to GAAP figures, including share-based compensation expense, amortization of acquisition-related intangible assets, purchase accounting adjustments to inventory, acquisition/divestiture costs, significant asset impairments and restructurings, and significant litigation settlements. Cisco asserts that these non-GAAP metrics provide useful insights into underlying business trends and operational performance, aiding investor and management analysis.

Key Highlights

  • 1Cisco Systems reported its Q1 FY2014 financial results on November 13, 2013.
  • 2The report's primary purpose is to furnish the earnings press release as Exhibit 99.1.
  • 3The press release details the company's financial performance for the quarter ended October 26, 2013.
  • 4Cisco continues to present and explain its use of non-GAAP financial measures.
  • 5Key non-GAAP adjustments discussed include share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs.
  • 6The company believes non-GAAP measures offer valuable insights into ongoing operational trends when viewed alongside GAAP results.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Cisco Systems' financial results for its fiscal first quarter ended October 26, 2013, by furnishing the accompanying earnings press release (Exhibit 99.1).

The earnings press release, as indicated in the 8-K, contains Cisco's results of operations and financial condition for the fiscal first quarter of 2014. It also includes non-GAAP financial measures such as non-GAAP net income, non-GAAP effective tax rates, non-GAAP net income per share, and non-GAAP inventory turns.

Cisco presents non-GAAP financial measures because management believes they provide useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. These measures are intended to exclude items that are not reflective of ongoing operating results and to provide a clearer view of the core business performance when viewed alongside GAAP measures.

Cisco excludes several items from its GAAP results to arrive at its non-GAAP measures. These typically include share-based compensation expense, amortization of acquisition-related intangible assets, impact to cost of sales from purchase accounting adjustments to inventory, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements, and the income tax effects of these items, as well as significant tax matters.