8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 13, 2015)

Filed May 13, 2015For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on May 13, 2015, to report its financial results for the fiscal third quarter ended April 25, 2015. The filing primarily references a press release (Exhibit 99.1) detailing these results. Notably, Cisco provided both GAAP and non-GAAP financial measures, explaining the rationale for excluding certain items like share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs. The company emphasizes that these non-GAAP measures are intended to offer a clearer view of ongoing operational trends and business performance to investors and management. Of particular interest to investors is Cisco's inclusion of free cash flow as a key metric. They define it as operating cash flow less capital expenditures and highlight its importance for returning value to shareholders through dividends and stock repurchases. The company also outlines its internal use of these non-GAAP measures for budgeting and financial review, signaling a consistent approach to financial reporting that aims to provide transparency beyond standard GAAP figures.

Key Highlights

  • 1Cisco reported its fiscal third quarter 2015 results on May 13, 2015, via an 8-K filing.
  • 2The filing includes a press release (Exhibit 99.1) with detailed financial outcomes for the quarter ended April 25, 2015.
  • 3Cisco provided both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial results.
  • 4Non-GAAP measures exclude items such as share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs to reflect ongoing operations.
  • 5Free cash flow is highlighted as a key metric, defined as operating cash flow less capital expenditures.
  • 6The company uses free cash flow to fund shareholder returns, including dividends and stock repurchases.
  • 7Management uses these non-GAAP measures for internal budgeting and review of financial performance.

Frequently Asked Questions

This 8-K filing covers Cisco Systems, Inc.'s fiscal third quarter ended April 25, 2015.

Cisco reports non-GAAP financial measures to provide investors and management with a clearer view of financial and business trends. These measures exclude certain items like share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs, which are not considered reflective of ongoing operating results.

Cisco defines free cash flow as net cash provided by operating activities less cash used to acquire property and equipment. It is considered an important liquidity measure because Cisco intends to return a stated percentage of free cash flow to shareholders through dividends and stock repurchases, and it reflects cash available for business investments, acquisitions, and shareholder returns.

The press release (Exhibit 99.1) is furnished with the 8-K and contains the detailed results of operations for Cisco's fiscal third quarter ended April 25, 2015. It is the primary document providing the financial data discussed in the 8-K.