8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 16, 2016)

Filed November 16, 2016For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on November 16, 2016, reporting its financial results for the fiscal first quarter ended October 29, 2016. The report primarily details the company's performance and includes a press release with financial information. Investors should note that Cisco utilizes and presents non-GAAP financial measures alongside GAAP measures, which exclude items such as share-based compensation, amortization of acquisition-related intangible assets, and acquisition/divestiture costs. These non-GAAP metrics are provided to offer a clearer view of ongoing business trends and operational performance. Key financial data, including non-GAAP net income, margins, operating expenses, and earnings per share, are disclosed in the accompanying press release. The company also provides forward-looking estimates for non-GAAP gross margin, operating margin, tax provision rate, and EPS. Cisco emphasizes the importance of considering these non-GAAP figures in conjunction with their GAAP counterparts for a comprehensive understanding of the company's financial health. The report also highlights the exclusion of the divested Service Provider Video Connected Devices (SP Video CPE) business from certain financial measures.

Key Highlights

  • 1Reporting of Cisco's fiscal first quarter 2017 results (ended October 29, 2016).
  • 2Use and presentation of non-GAAP financial measures, including net income, margins, operating expenses, and EPS.
  • 3Disclosure of future estimated ranges for key non-GAAP financial metrics.
  • 4Explanation of the rationale behind excluding specific items (e.g., share-based compensation, acquisition costs) from non-GAAP measures.
  • 5Inclusion of free cash flow as a liquidity measure, defined as net cash from operating activities less capital expenditures.
  • 6Financial measures are presented excluding the divested Service Provider Video CPE Business for a clearer go-forward view.
  • 7The information is furnished via an attached press release (Exhibit 99.1).

Frequently Asked Questions

This 8-K filing is primarily to report Cisco's financial results for its fiscal first quarter ended October 29, 2016, and to furnish the accompanying press release that contains detailed financial information and outlook.

Cisco presents non-GAAP measures because it believes they provide useful information to investors and management by excluding certain items like share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs. These exclusions are intended to offer a clearer view of ongoing business trends and operational performance, excluding items that may not be directly reflective of core operations or that are non-cash in nature.

Cisco defines free cash flow as net cash provided by operating activities less cash used to acquire property and equipment. The company views this as an important liquidity measure for assessing its ability to return capital to shareholders through dividends and stock repurchases, as well as for reinvesting in the business.

Yes, Cisco presents certain financial measures that exclude the results of the Customer Premises Equipment portion of its Service Provider Video Connected Devices business (SP Video CPE Business), which was divested in the second quarter of fiscal 2016. This exclusion is intended to provide a more accurate view of the company's ongoing business trends.