Cisco Systems Reports Second Quarter Earnings.SAN JOSE San Jose, city, United StatesSan Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Feb. 4, 1997--Cisco Systems Inc., the worldwide leader in networking for the Internet, today reported its second quarter results for the period ending Jan. 25, 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter were $1,592.4 million, compared with $918.5 million for the same period last year, an increase of 73%. Net income was $338.5 million or $0.49 per share, compared with $209.7 million or $0.31 per share for the second quarter of 1996. On Nov. 19, 1996, Cisco completed its purchase of NETSYS Technologies Netsys Technologies was a Palo Alto, California technology company that developed computer network simulation, modeling, and management software. The company was founded in 1991 by CEO Herb Madan and Jim McGuire, and grew to approximately 50 employees by the time it was acquired by Inc., a pioneer in network infrastructure management and performance analysis software, in exchange for common stock worth approximately $79 million and took a one-time charge of $43.2 million or $0.06 per share on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. as a write-off of in-process R&D. Additionally, the company realized a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of $47.3 million from the sale of a portion of one minority stock investment that, on an after-tax basis, contributed $0.04 per share to net income for the quarter. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income, excluding the write-off of NETSYS in-process R&D and the gain from the sale of the above-mentioned stock was $351.9 million or $0.51 per share, compared with $209.7 million or $0.31 per share in the same period last year, increases of 68% and 65% respectively. Net sales for the first six months of fiscal 1997 were $3,027.2 million, compared with $1,716.8 million for the same period last year, an increase of 76%. Net income was $519.4 million or $0.76 per share, versus $391.1 million or $0.59 per share during the first six months of fiscal 1996. Pro forma net income for the first six months was $672.7 million or $0.98 per share, excluding write-offs of in-process R&D from the NETSYS and Telebit acquisitions and the gains from sales of the minority stock investment, versus net income of $391.1 million or $0.59 per share for the same period last year, increases of 72% and 66% respectively. The net income per share and number of shares used in per-share calculations for all periods presented reflect the two-for-one stock split that was effective Feb. 16, 1996. "We are pleased to report the eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarter of double-digit revenue growth for Cisco," said John Chambers John Chambers could be any of the following people:
Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. . Cisco continued to make progress in its three key markets -- Enterprise, Service Provider and Small-to-Medium Business -- by providing end-to-end network systems through internal product developments, strategic alliances, minority investments and acquisitions. In the enterprise, Cisco continued to be selected as a strategic network provider by leading customers such as USAA USAA United Services Automobile Association USAA Urban Superintendents Association of America USAA United States Achievement Academy USAA United States Arbitration Act of 1925 USAA United States Axemen's Association USAA United States Air-Table-Hockey Association and Canadian-based Toronto Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. Bank, who want end-to-end networking solutions from a single source. Leading-edge customers are increasingly seeking both comprehensive end-to-end networking systems and computing computing - computer systems from one or two strategic suppliers. To address this requirement, Cisco and Hewlett-Packard announced a unique worldwide business alliance. The two companies will offer integrated end-to-end network-computing solutions with a one-stop approach to service and support for customers. For enterprise customers who continue to use the mainframe as a powerful server, Cisco made minority investments in Interlink INTERLINK - A commercial product comprising hardware and software for file transfer between IBM and VAX computers. and OpenConnect. Both companies offer technologies that help integrate SNA (Systems Network Architecture) IBM's mainframe network standards introduced in 1974. Originally a centralized architecture with a host computer controlling many terminals, enhancements, such as APPN and APPC (LU 6. systems more tightly with open, standards-based networks. For small-to-medium businesses, Cisco complimented its NetBeyond family with the Cisco 770 series of access products that address the needs of Small Office/Home Office See SOHO. (SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. ) users. This new series of products delivers simple, secure intranet and Internet access See how to access the Internet. to a growing number of SOHO customers. In the wide area networking arena, Cisco's Tag Switching A layer 3 switching technology from Cisco that is used in large enterprise networks (WANs). It uses tags (labels) containing forwarding information. Tag switching uses routers (Tag Edge Routers) that sit on the periphery of the network and make forwarding decisions for all the routers in , Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. and ATM technologies are being met with increasing acceptance by service providers. Additionally, to help scale the Internet, Cisco introduced a variety of enhancements and new systems for its high-end core routers A router that resides within the middle or backbone of the network rather than at its periphery. The routers that make up the backbone of the Internet are core routers. See edge router and WAN router. that will improve performance and increase port density while reducing cost. "During the past several quarters, we have seen leading enterprise customers move to reduce network complexity by aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. with Cisco as their strategic vendor for network systems. This trend is now beginning to emerge in the service provider area with a number of customers choosing Cisco for their end-to-end network system requirements To be used efficiently, all computer software needs certain hardware components or other software resources to be present on a computer system. These pre-requisites are known as (computer) system requirements and are often used as a guideline as opposed to an absolute rule. ," said Chambers. Cisco Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com . This release may consist of forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Cisco with the S.E.C., specifically the most recent reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. -0- NOTE TO EDITORS: Cisco Systems and NetBeyond are trademarks, and Cisco and the Cisco Systems logo are registered trademarks of Cisco Systems Inc. All other trademarks, service marks, registered trademarks or registered service marks mentioned in this document are the property of their respective owners. -0-
Cisco Systems Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
(Unaudited)
Quarters Ended Six Months Ended
------------------ ----------------------
Jan. 25, Jan. 28, Jan. 25, Jan. 28,
1997 1996 1997 1996
--------- -------- --------- ---------
Net sales $1,592,377 $918,510 $3,027,203 $1,716,801
Cost of sales 552,519 312,315 1,053,999 580,057
--------- -------- -------- --------
Gross margin 1,039,858 606,195 1,973,204 1,136,744
Operating expenses:
Research and
development 167,652 89,695 312,363 167,875
Sales and marketing 288,341 163,527 547,451 308,778
General and
administrative 52,111 31,462 93,887 59,729
Purchased R & D 43,203 - 217,792 -
--------- -------- -------- --------
Total operating
expenses 551,307 284,684 1,171,493 536,382
--------- -------- -------- --------
Operating income 488,551 321,511 801,711 600,362
Realized gain on sale of
investment 47,299 - 102,407 -
Interest and other
income, net 27,064 15,646 48,542 28,504
--------- -------- -------- --------
Income before provision
for income taxes 562,914 337,157 952,660 628,866
Provision for
income taxes 224,455 127,420 433,258 237,742
--------- -------- -------- --------
Net income $ 338,459 $209,737 $519,402 $391,124
========= ======== ======== ========
Net income per share $ 0.49 $ 0.31 $ 0.76 $ 0.59
========= ======== ======== ========
Shares used in per-
share calculation 690,304 666,177 686,824 659,625
========= ======== ======== ========
The net income per share and number of shares used in the per-share
calculation for all periods presented reflect the two-for-one stock
split that was effective Feb. 16, 1996.
Cisco Systems Inc.
PRO FORMA STATEMENT OF OPERATIONS
Excluding Purchased R & D and Realized Gain
(In thousands, except per-share amounts)
(Unaudited)
Quarters Ended Six Months Ended
------------------ ----------------------
Jan. 25, Jan. 28, Jan. 25, Jan. 28,
1997 1996 1997 1996
--------- -------- --------- ---------
Net sales $1,592,377 $918,510 $3,027,203 $1,716,801
Cost of sales 552,519 312,315 1,053,999 580,057
--------- -------- -------- -------
Gross margin 1,039,858 606,195 1,973,204 1,136,744
Operating expenses:
Research and
development 167,652 89,695 312,363 167,875
Sales and marketing 288,341 163,527 547,451 308,778
General and
administrative 52,111 31,462 93,887 59,729
--------- -------- -------- --------
Total operating
expenses 508,104 284,684 953,701 536,382
--------- -------- -------- -------
Operating income 531,754 321,511 1,019,503 600,362
Interest and other
income, net 27,064 15,646 48,542 28,504
--------- -------- -------- -------
Income before provision
for income taxes 558,818 337,157 1,068,045 628,866
Provision for
income taxes 206,955 127,420 395,368 237,742
--------- -------- -------- -------
Net income(a) $ 351,863 $209,737 $672,677 $391,124
========= ======== ======== ========
Net income per share(a) $ 0.51 $ 0.31 $ 0.98 $ 0.59
========= ======== ======== ========
Shares used in per-share
calculation 690,304 666,177 686,824 659,625
========= ======== ======== ========
PRO FORMA ONLY
(a) The above pro-forma amounts for the quarter and six months ended
1/25/97 have been adjusted to eliminate the quarter one $174,589 and
the quarter two $43,203 charges for the write off of purchased in-
process R&D, and the quarter one $55,108 and the quarter two $47,299
gains from the sale of a minority stock investment net of income tax
expense of $20,390 and $17,500, respectively.
Cisco Systems Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Jan. 25, 1997 July 28, 1996
(unaudited)
Assets
Current Assets:
Cash and equivalents $ 332,807 $ 279,695
Short-term investments 774,673 758,489
Accounts receivable, net 1,024,942 622,859
Inventories, net 203,721 301,188
Deferred income taxes 191,268 101,827
Other current assets 91,608 95,582
Total current assets 2,619,019 2,159,640
Investments 1,160,995 832,114
Restricted investments 247,649 228,644
Property and equipment, net 410,065 331,315
Other assets 132,316 78,519
Total assets $ 4,570,044 $ 3,630,232
Liabilities and Shareholders'
Equity
Current Liabilities:
Accounts payable and other
accrued expenses $ 775,015 $ 599,459
Income taxes payable 172,744 169,894
Total current liabilities 947,759 769,353
Minority interest 41,192 41,257
Shareholders' equity 3,581,093 2,819,622
Total liabilities and
shareholders' equity $ 4,570,044 $ 3,630,232
CONTACT: Cisco Systems Inc. Mary Thurber, 408/526-8893 (Investor contact) mthurber@cisco.com Adam Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. , 408/526-7388 (Press contact) astein@cisco.com Randi Paikoff Feigin, 408/527-1099 rfeigin@cisco.com |
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