What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to officially report Cisco Systems, Inc.'s financial results for its fiscal third quarter ended April 25, 2020, by furnishing the accompanying press release (Exhibit 99.1).

What are non-GAAP financial measures and why does Cisco use them?

Non-GAAP financial measures are financial metrics that exclude certain items from generally accepted accounting principles (GAAP) measures. Cisco uses them, along with GAAP measures, to provide investors with a clearer view of its ongoing operational performance by excluding items like share-based compensation, acquisition-related costs, and other non-recurring or non-operational expenses. Management uses these to understand business trends better.

Why is the Service Provider Video Software Solutions (SPVSS) business mentioned as being excluded?

The SPVSS business was divested in fiscal 2019. Cisco excludes its financial impact from certain reported measures to offer a clearer perspective on the performance and trends of its current, ongoing business operations, as SPVSS is no longer part of the company's future business.

Should investors rely solely on the non-GAAP financial measures presented?

No, investors should not rely solely on non-GAAP financial measures. Cisco itself states that these measures have limitations and should be used in conjunction with the corresponding GAAP measures to get a complete understanding of the company's financial condition and results of operations. Additionally, investors should be aware that non-GAAP measures are not standardized across all companies.

CSCO 8-K: Earnings & Results

Summary

Cisco Systems, Inc. (CSCO) filed an 8-K on May 13, 2020, to report its financial results for the fiscal third quarter ended April 25, 2020. The report primarily serves to furnish the accompanying press release (Exhibit 99.1), which details the company's operational and financial performance. A significant focus of this filing is the presentation of non-GAAP financial measures, which exclude various items such as share-based compensation, acquisition-related costs, and other one-time or non-operational expenses. Cisco asserts that these non-GAAP figures, when reviewed alongside GAAP measures, provide a more insightful view of ongoing business trends and operational results. The filing also notes the exclusion of the Service Provider Video Software Solutions (SPVSS) business from comparable financial measures, as this segment was divested in fiscal 2019. Investors are advised that these non-GAAP measures are not standardized and may differ from those used by other companies. The company's management utilizes these non-GAAP metrics for internal budgeting and financial review, aiming to present a clearer picture of the core business performance.

Key Highlights

1Cisco Systems, Inc. reported its fiscal third quarter 2020 financial results on May 13, 2020, via an 8-K filing.
2The primary content of the filing is a press release (Exhibit 99.1) containing the quarterly financial results.
3The report emphasizes the use of non-GAAP financial measures alongside GAAP measures to provide insights into operational performance.
4Key excluded items from non-GAAP measures include share-based compensation, amortization of acquisition-related intangibles, and acquisition/divestiture costs.
5Financials exclude the impact of the divested Service Provider Video Software Solutions (SPVSS) business for better trend analysis.
6Investors are cautioned that non-GAAP measures are not universally standardized and may differ across companies.

CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 13, 2020)

Summary

Key Highlights

Frequently Asked Questions