8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 15, 2017)

Filed February 15, 2017For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on February 15, 2017, to report its financial results for the fiscal second quarter ended January 28, 2017. The report primarily serves to furnish a press release detailing these results, which investors should review for a comprehensive understanding of the company's performance. The filing emphasizes Cisco's use of non-GAAP financial measures, including non-GAAP net income, gross margins, operating expenses, operating income, effective tax rates, and EPS. These non-GAAP figures are presented alongside GAAP measures and are intended to provide investors with a clearer view of underlying business trends by excluding items such as share-based compensation, acquisition-related amortization and costs, significant asset impairments/restructurings, litigation, investment gains/losses, and related tax effects. The company also highlights free cash flow as a key liquidity measure.

Key Highlights

  • 1Cisco reported its fiscal second quarter 2017 results on February 15, 2017.
  • 2The 8-K filing includes a furnished press release (Exhibit 99.1) containing the detailed financial results.
  • 3The company utilizes and presents non-GAAP financial measures, including non-GAAP net income, margins, and EPS, alongside GAAP measures.
  • 4Key exclusions from non-GAAP measures include share-based compensation, amortization of acquisition-related intangibles, acquisition/divestiture costs, and significant one-time items.
  • 5Free cash flow is presented as a key liquidity metric, defined as operating cash flow less capital expenditures.
  • 6The company also provides future estimated ranges for gross margin, operating margin, tax provision rate, and EPS on a non-GAAP basis.
  • 7Financial measures excluding the divested SP Video CPE Business are also provided for historical and projected results.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially report Cisco's financial results for its fiscal second quarter ended January 28, 2017. It includes a press release that details these results.

Non-GAAP financial measures are financial metrics that exclude certain items from GAAP (Generally Accepted Accounting Principles) measures. Cisco uses them to provide investors with additional insights into its ongoing business performance and trends by excluding items like share-based compensation, acquisition-related costs, and significant one-time charges or benefits that management believes are not indicative of core operational results.

Cisco defines free cash flow as net cash provided by operating activities less cash used for property and equipment acquisitions. The company highlights free cash flow as a key liquidity measure because it represents the cash available for strategic initiatives such as returning capital to shareholders through dividends and stock repurchases, investing in the business, and making acquisitions.

Yes, the attached press release (Exhibit 99.1) includes future estimated ranges for gross margin, operating margin, tax provision rate, and EPS on a non-GAAP basis.