05/15/2024 | Press release | Distributed by Public on 05/15/2024 15:29
HISTORICAL FINANCIALS | ||||||||
INCOME STATEMENTS | ||||||||
(in millions, except per-share amounts) | ||||||||
Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | Notes (1) (2) | |
GAAP | NON-GAAP | GAAP | NON-GAAP | GAAP | NON-GAAP | GAAP | NON-GAAP | |
FY 2024 | FY 2024 | FY 2024 | FY 2024 | FY 2024 | FY 2024 | FY 2024 | FY 2024 | |
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | |
October 28, 2023 | October 28, 2023 | January 27, 2024 | January 27, 2024 | April 27, 2024 | April 27, 2024 | April 27, 2024 | April 27, 2024 | |
REVENUE: | ||||||||
Product | $ 11,139 | $ 11,139 | $ 9,232 | $ 9,232 | $ 9,024 | $ 9,024 | $ 29,395 | $ 29,395 |
Service | 3,529 | 3,529 | 3,559 | 3,559 | 3,678 | 3,678 | 10,766 | 10,766 |
Total revenue | 14,668 | 14,668 | 12,791 | 12,791 | 12,702 | 12,702 | 40,161 | 40,161 |
COST OF SALES: | ||||||||
Product (a) - (c) | 3,957 | 3,734 | 3,443 | 3,209 | 3,295 | 2,985 | 10,695 | 9,928 |
Service (a) & (c) | 1,154 | 1,093 | 1,131 | 1,050 | 1,134 | 1,044 | 3,419 | 3,187 |
Total cost of sales (a) - (c) | 5,111 | 4,827 | 4,574 | 4,259 | 4,429 | 4,029 | 14,114 | 13,115 |
GROSS MARGIN (a) - (c) | 9,557 | 9,841 | 8,217 | 8,532 | 8,273 | 8,673 | 26,047 | 27,046 |
Product gross margin percentage | 64.5% | 66.5% | 62.7% | 65.2% | 63.5% | 66.9% | 63.6% | 66.2% |
Service gross margin percentage | 67.3% | 69.0% | 68.2% | 70.5% | 69.2% | 71.6% | 68.2% | 70.4% |
Total gross margin percentage | 65.2% | 67.1% | 64.2% | 66.7% | 65.1% | 68.3% | 64.9% | 67.3% |
OPERATING EXPENSES: | ||||||||
Research and development (a) & (c) | 1,913 | 1,593 | 1,943 | 1,556 | 1,948 | 1,505 | 5,804 | 4,654 |
Sales and marketing (a), & (c) | 2,506 | 2,319 | 2,458 | 2,236 | 2,559 | 2,300 | 7,523 | 6,855 |
General and administrative (a), (c) & (d) | 672 | 556 | 642 | 525 | 736 | 519 | 2,050 | 1,600 |
Amortization of purchased intangible assets (b) | 67 | - | 66 | - | 297 | - | 430 | - |
Restructuring and other charges (e) | 123 | - | 12 | - | 542 | - | 677 | - |
Total operating expenses (a) - (e) | 5,281 | 4,468 | 5,121 | 4,317 | 6,082 | 4,324 | 16,484 | 13,109 |
Operating expense as a percentage of revenue | 36.0% | 30.5% | 40.0% | 33.8% | 47.9% | 34.0% | 41.0% | 32.6% |
OPERATING INCOME (a) - (e) | 4,276 | 5,373 | 3,096 | 4,215 | 2,191 | 4,349 | 9,563 | 13,937 |
Operating income as a percentage of revenue | 29.2% | 36.6% | 24.2% | 33.0% | 17.2% | 34.2% | 23.8% | 34.7% |
Interest income | 360 | 360 | 324 | 324 | 411 | 411 | 1,095 | 1,095 |
Interest expense | (111) | (111) | (120) | (120) | (357) | (357) | (588) | (588) |
Other income (loss), net (f) | (83) | (32) | (139) | (51) | (10) | (17) | (232) | (100) |
Interest and other income (loss), net | 166 | 217 | 65 | 153 | 44 | 37 | 275 | 407 |
INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (f) | 4,442 | 5,590 | 3,161 | 4,368 | 2,235 | 4,386 | 9,838 | 14,344 |
Provision for income taxes (g) - (h) | 804 | 1,062 | 527 | 830 | 349 | 833 | 1,680 | 2,725 |
NET INCOME (a) - (h) | $ 3,638 | $ 4,528 | $ 2,634 | $ 3,538 | $ 1,886 | $ 3,553 | $ 8,158 | $ 11,619 |
Net income per share: | ||||||||
Basic (a) - (h) | $ 0.90 | $ 0.65 | $ 0.47 | $ 2.01 | ||||
Diluted (a) - (h) | $ 0.89 | $ 1.11 | $ 0.65 | $ 0.87 | $ 0.46 | $ 0.88 | $ 2.00 | $ 2.85 |
Shares used in per-share calculation: | ||||||||
Basic | 4,057 | 4,055 | 4,042 | 4,051 | ||||
Diluted | 4,087 | 4,087 | 4,073 | 4,073 | 4,060 | 4,060 | 4,071 | 4,071 |
Cash dividends declared per common share | $ 0.39 | $ 0.39 | $ 0.40 | $ 1.18 | ||||
Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles. |
&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.
INCOME STATEMENTS | |||||
Note 1 | |||||
(in millions) | |||||
FY 2024 | FY 2024 | FY 2024 | FY 2024 | ||
Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | ||
October 28, 2023 | January 27, 2024 | April 27, 2024 | April 27, 2024 | ||
A reconciliation between net income on a GAAP basis and non-GAAP net income including items (a) to (h) is as follows: | |||||
GAAP net income | $ 3,638 | $ 2,634 | $ 1,886 | $ 8,158 | |
(a) | Share-based compensation expense | 653 | 801 | 804 | 2,258 |
(b) | Amortization of acquisition-related intangible assets | 248 | 241 | 546 | 1,035 |
(c) | Other acquisition-related/divestiture costs | 75 | 65 | 276 | 416 |
(d) | Russia-Ukraine war costs | (2) | - 0 | (10) | (12) |
(e) | Significant asset impairments and restructurings | 123 | 12 | 542 | 677 |
(f) | Gains and losses on equity investments | 51 | 88 | (7) | 132 |
Total adjustments to GAAP income before provision for income taxes | 1,148 | 1,207 | 2,151 | 4,506 | |
(g) | Income tax effect | (258) | (303) | (484) | (1,045) |
(h) | Significant tax matters | - 0 | - 0 | - 0 | - 0 |
Total adjustments to GAAP provision for income taxes | (258) | (303) | (484) | (1,045) | |
Non-GAAP net income | $ 4,528 | $ 3,538 | $ 3,553 | $ 11,619 |
&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.
INCOME STATEMENTS | ||||||||||
Note 2 | ||||||||||
(in millions) | ||||||||||
COGS | Operating Expense | OI&E | ||||||||
Research and Development | Sales and Marketing | General and Administrative | Amortization of Purchased Intangible Assets | Restructuring and Other Charges | Other Income (Expense) | Total | ||||
Product | Service | |||||||||
Items (a) to (f) in note 1 are allocated as follows: | ||||||||||
Items | Q1'24 | |||||||||
(a) | Share-based compensation expense | $ 42 | $ 61 | $ 274 | $ 186 | $ 90 | $ - | $ - | $ - | $ 653 |
(b) | Amortization of acquisition-related intangible assets | 181 | - | - | - | - | 67 | - | - | 248 |
(c) | Other acquisition-related/divestiture costs | - | - | 46 | 1 | 28 | - | - | - | 75 |
(d) | Russia-Ukraine war costs | - | - | - | - | (2) | - | - | - | (2) |
(e) | Significant asset impairments and restructurings | - | - | - | - | - | - | 123 | - | 123 |
(f) | Gains and losses on equity investments | - | - | - | - | - | - | - | 51 | 51 |
Total | $ 223 | $ 61 | $ 320 | $ 187 | $ 116 | $ 67 | $ 123 | $ 51 | $ 1,148 | |
Items | Q2'24 | |||||||||
(a) | Share-based compensation expense | $ 58 | $ 81 | $ 344 | $ 221 | $ 97 | $ - | $ - | $ - | $ 801 |
(b) | Amortization of acquisition-related intangible assets | 175 | - | - | - | - | 66 | - | - | 241 |
(c) | Other acquisition-related/divestiture costs | 1 | - | 43 | 1 | 20 | - | - | - | 65 |
(d) | Russia-Ukraine war costs | - | - | - | - | - | - | - | - | - |
(e) | Significant asset impairments and restructurings | - | - | - | - | - | - | 12 | - | 12 |
(f) | Gains and losses on equity investments | - | - | - | - | - | - | - | 88 | 88 |
Total | $ 234 | $ 81 | $ 387 | $ 222 | $ 117 | $ 66 | $ 12 | $ 88 | $ 1,207 | |
Items | Q3'24 | |||||||||
(a) | Share-based compensation expense | $ 57 | $ 82 | $ 349 | $ 221 | $ 95 | $ - | $ - | $ - | $ 804 |
(b) | Amortization of acquisition-related intangible assets | 249 | - | - | - | - | 297 | - | - | 546 |
(c) | Other acquisition-related/divestiture costs | 4 | 8 | 94 | 38 | 132 | - | - | - | 276 |
(d) | Russia-Ukraine war costs | - | - | - | - | (10) | - | - | - | (10) |
(e) | Significant asset impairments and restructurings | - | - | - | - | - | - | 542 | - | 542 |
(f) | Gains and losses on equity investments | - | - | - | - | - | - | - | (7) | (7) |
Total | $ 310 | $ 90 | $ 443 | $ 259 | $ 217 | $ 297 | $ 542 | $ (7) | $ 2,151 | |
Items | Q3'24 YTD | |||||||||
(a) | Share-based compensation expense | $ 157 | $ 224 | $ 967 | $ 628 | $ 282 | $ - | $ - | $ - | $ 2,258 |
(b) | Amortization of acquisition-related intangible assets | 605 | - | - | - | - | 430 | - | - | 1,035 |
(c) | Other acquisition-related/divestiture costs | 5 | 8 | 183 | 40 | 180 | - | - | - | 416 |
(d) | Russia-Ukraine war costs | - | - | - | - | (12) | - | - | - | (12) |
(e) | Significant asset impairments and restructurings | - | - | - | - | - | - | 677 | - | 677 |
(f) | Gains and losses on equity investments | - | - | - | - | - | - | - | 132 | 132 |
Total | $ 767 | $ 232 | $ 1,150 | $ 668 | $ 450 | $ 430 | $ 677 | $ 132 | $ 4,506 |
&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.