8-KEarnings & Results

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 17, 2017)

Filed May 17, 2017For Securities:CSCO

Summary

This 8-K filing by Cisco Systems, Inc. (CSCO) on May 17, 2017, primarily serves to furnish their earnings press release for the fiscal third quarter ended April 29, 2017. The report details both GAAP and non-GAAP financial results, with a strong emphasis on the latter. Cisco utilizes non-GAAP measures to provide a clearer view of its ongoing operational performance by excluding items such as share-based compensation, amortization of acquisition-related intangible assets, acquisition/divestiture costs, significant asset impairments, restructurings, litigation, and investment gains/losses. Investors should note that the press release provides forward-looking estimates for gross margin, operating margin, tax provision rate, and EPS on a non-GAAP basis. Cisco explicitly states its belief that these non-GAAP measures, when presented alongside GAAP figures, offer valuable insights into financial and business trends. The company also highlights the exclusion of the divested SP Video CPE Business from certain historical financial measures to better reflect its current business trajectory.

Key Highlights

  • 1Cisco Systems, Inc. reported its fiscal third quarter 2017 results on May 17, 2017.
  • 2The filing furnishes a press release detailing Q3 2017 financial results and forward-looking guidance.
  • 3The company provides both GAAP and non-GAAP financial metrics, with a focus on non-GAAP for operational insights.
  • 4Key non-GAAP adjustments include exclusions for share-based compensation, acquisition-related costs, and amortization of intangibles.
  • 5Cisco also excludes significant asset impairments, restructurings, litigation, and investment gains/losses from its non-GAAP reporting.
  • 6The company provides future estimated ranges for key non-GAAP metrics like gross margin, operating margin, and EPS.
  • 7Financial measures excluding the divested SP Video CPE Business are presented to reflect ongoing operations.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly furnish Cisco's earnings press release for its fiscal third quarter ended April 29, 2017, thereby making the financial results and related commentary officially available to investors and the public.

Cisco emphasizes non-GAAP financial measures because it believes they provide a more useful view of its ongoing operational performance and business trends by excluding certain items that management considers not reflective of core operations. These excluded items include share-based compensation, acquisition-related costs, amortization of intangibles, and other significant, non-recurring, or non-operational items.

The filing indicates that the accompanying press release includes future estimated ranges for key non-GAAP financial metrics. These projections typically cover gross margin, operating margin, tax provision rate, and earnings per share (EPS), offering investors guidance on the company's expected near-term performance.

Cisco explicitly states that its non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with Generally Accepted Accounting Principles (GAAP) and may differ from similar measures used by other companies. Investors should always review the provided reconciliations to GAAP and understand the specific exclusions Cisco makes.