8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 12, 2014)

Filed February 12, 2014For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on February 12, 2014, to report its financial results for the fiscal second quarter ended January 25, 2014. The report primarily serves as a vehicle to furnish a press release detailing these results, which is included as an exhibit. Of significant note for investors is Cisco's practice of providing non-GAAP financial measures alongside GAAP figures. The company believes these non-GAAP metrics, which exclude items such as share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture costs, and significant litigation/restructuring charges, offer a clearer view of ongoing operational trends and performance. Investors should pay close attention to the specific exclusions made by Cisco and understand how they bridge the gap between GAAP and non-GAAP reporting when evaluating the company's financial health and future prospects.

Key Highlights

  • 1Cisco Systems reported its fiscal second quarter 2014 financial results on February 12, 2014.
  • 2The 8-K filing includes a press release (Exhibit 99.1) with detailed financial information for the quarter ended January 25, 2014.
  • 3Cisco provides both GAAP and non-GAAP financial results, with a detailed explanation of excluded items.
  • 4Key exclusions for non-GAAP measures include share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs.
  • 5The company emphasizes that non-GAAP measures are intended to provide insights into financial and business trends and should be analyzed in conjunction with GAAP measures.
  • 6Management utilizes these non-GAAP measures for internal budgeting and performance review.
  • 7The report specifies that information furnished in this 8-K is not incorporated by reference into other filings and is not deemed 'filed' under Section 18 of the Exchange Act.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly report Cisco Systems' financial results for its second fiscal quarter of 2014, which ended on January 25, 2014. It formally furnishes the press release containing these results as an exhibit.

Non-GAAP financial measures are financial performance indicators that exclude certain items from the corresponding GAAP (Generally Accepted Accounting Principles) measures. Cisco provides them because management believes these adjusted figures offer a more useful view of the company's ongoing operational performance and trends by excluding non-cash expenses, acquisition-related impacts, and significant one-time events that may not reflect the core business operations.

Cisco typically excludes expenses such as share-based compensation, amortization of acquisition-related intangible assets, purchase accounting adjustments to inventory, acquisition-related and divestiture costs, significant asset impairments and restructurings, significant litigation and other contingencies, and the related income tax effects. They may also exclude significant tax matters.

Investors should view non-GAAP results as supplementary information to GAAP results. They provide a different lens on performance by attempting to normalize for factors that can distort period-to-period comparability. It is crucial for investors to review the specific explanations provided by Cisco for each excluded item and consider how these adjustments impact the overall financial picture when making investment decisions.