Cisco Systems Releases Statement Regarding Second Quarter Earnings
SAN JOSE, Calif., February 6, 2002 - Cisco Systems, Inc. today announced that an internal communication from a Cisco executive characterizing Cisco's Q2 FY 2002 financial results in positive terms was prematurely and inadvertently distributed to a large number of Cisco employees after close of market on February 5. The communication also said that Cisco's booked orders, for products only, were $3.9 billion versus an internal goal of $3.75 billion for the quarter. The memo did not include specific information about revenues or earnings for the quarter.
"As previously scheduled, we will release financial results for the quarter after the close of the market today. So as to minimize any potential confusion, the results we announce this afternoon will exceed the current consensus estimates of earnings per share and revenues for the second quarter of our fiscal year," said Cisco Chief Financial Officer Larry Carter. "We felt it was necessary to disclose this information publicly, given the broad internal distribution of the communication. Investors are urged to listen to our conference call scheduled for 1:45 PM (PST) today for further detail on this quarter's performance."
Cisco will proceed with its regularly scheduled release of financial results over First Call, Full National Business Wire, Analyst wire as well as the European Business and Technical Wire after close of the market today. The press release will also be posted on our World Wide Web page at www.cisco.com.
Cisco's Q2FY 2002 conference call will be held at 1:45 PM PST today. To listen via the Internet, a live and replay audio broadcast of the conference call will be available at www.cisco.com/go/investors. To listen via telephone, please dial 888-566-6155 (within the United States) or 312-470-0032 (for international callers). Due to a limited number of lines available, we encourage you to dial-in approximately 30 minutes prior to the start of the call.
About Cisco SystemsCisco Systems, Inc., (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at www.cisco.com.
This release contains projections and other forward-looking statements regarding future events and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed by Cisco with the SEC, specifically the most recent reports on Form 10-K, 10-Q and 8-K, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. In addition to these risk factors, other factors that could cause actual results to differ materially include the following:, including risks associated with business and economic conditions and growth trends in the networking industry in various geographic regions; global economic conditions; overall information technology spending, especially service provider capital spending in the data or IP segments; the growth of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market; the ability to successfully restructure existing businesses; the timing of orders and manufacturing lead times; changes in customer order patterns; insufficient, excess or obsolete inventory; variations in sales channels, product costs, or mix of products sold; the ability to successfully reduce overhead and manage expenses; the ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; the trend towards sales of integrated network solutions; manufacturing and sourcing risks; Internet infrastructure problems and government regulation of the Internet; international operations; the timing and amount of employer payroll tax to be paid on employees' gains on stock options exercised; litigation involving patents, intellectual property, antitrust, stockholder and other matters; possible disruption in commercial activities occasioned by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; exposure to credit risks relating to certain customers and credit exposures in weakened markets; the ability to recruit and retain key personnel; stock price volatility; financial risk management; and potential volatility in operating results, among others. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time to time. Cisco's results of operations for the three and six months ended January 26, 2002 are not necessarily indicative of Cisco's operating results for the full fiscal year or any future periods.