SAN JOSE, Calif., May 12, 1994 - Cisco Systems, Inc., (NASDAQ:CSCO), a manufacturer of internetworking computer systems, today reportedits third quarter results for the period ended May 1, 1994. Net sales forthe third fiscal quarter were $331,193,000 and net income was $84,344,000,or $.32 per share. This compares to net sales of $172,362,000 and netincome of $46,299,000, or $.18 per share in the same period lastyear, and are increases of 92 percent, 82 percent, and 78 percent,respectively.
Net sales for the nine months were $881,816,000 and net income was$225,301,000 or $.85 per share. This compares to net sales of $443,812,000and net income of $118,236,000 or $.46 per share in the same period lastyear, and are increases of 99 percent, 91 percent, and 85 percent,respectively.
The net income per share and number of shares used in per-sharecalculations for all periods presented reflect the two-for-one stocksplit which was effective March 4, 1994.
Cisco Systems' fiscal year is a 52 or 53 week year ending on the lastSunday of July. The 53rd week in fiscal 1994 was included in the secondquarter ended January 30, 1994. Fiscal 1993 was a 52 week year.
"It is my pleasure to report the seventeenth consecutive quarter ofgrowth in revenue and profitability since the company went public inFebruary 1990," said John Morgridge, president and CEO of Cisco. "While weare pleased with this performance, it is important to note that the rate ofgrowth as measured on a quarter-to-quarter basis is now in the 8-12percent range we have always projected.
"The clear highlight of the quarter was Cisco's announcement of both amajor new networking architecture and an array of new products targeted atthe emerging ATM and LAN switching segments of our market. Thisarchitecture, called the CiscoFusion(TM)architecture, will provideour customers with a clear, evolutionary path for the use of new switchedinternetworking technologies. As one of four founding members of the ATMForum, we have long been committed to finding a way to allow ATM to reachits potential. We feel that CiscoFusion will let our customers do justthat -- keeping the router-based intelligence of their networks whiletaking advantage of some of the speed and simplicity of switchingtechnologies.
"The new products announced as part of the CiscoFusion launch includethe Catalyst FDDI-to-Ethernet LAN switch, the first new product from ourWorkgroup Business Unit since the acquisition of CrescendoCommunications;the new Cisco7010, a five-slot version of our flagship Cisco 7000; theSilicon SwitchProcessor, an upgraded, high-end processor for our Cisco7000 family of routers that almost triples the performance of the systems;the ATM interface for our Cisco 7000 routers, and the Cisco ATMswitch, astate-of-the-art ATM switch for workgroup applications that was co-developedwith NEC. The Application Interface Processor and the ATM switch are thefirst ATM products on the market to support the ATM Forum's signalingstandard.
"New strategic partnerships announced during the quarter includeagreements with two global switching vendors -- Ericsson, and NorthernTelecom -- and an expanded partnership announcement with Cabletron Systemswherein Cisco will provide the internetworking and routing components forCabletron's existing and future hubs."
Cisco Systems, Inc., is the leading global supplier of highperformance, multimedia and multiprotocol routers, bridges, workgroupsystems, and communication servers.
Cisco Systems, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts) Quarters Ended Nine Months Ended ------------------ ------------------- May 1, Apr. 25, May 1, Apr. 25, 1994 1993 1994 1993 --------- -------- --------- --------- (Unaudited) (Unaudited)Net sales $331,193 $172,362 $881,816 $443,812Cost of sales 109,141 56,054 294,420 142,873 -------- -------- -------- -------- Gross margin 222,052 116,308 587,396 300,939Operating expenses: Research and development 23,311 11,727 62,916 30,562 Sales and marketing 55,358 27,880 141,417 74,385 General and administrative 11,796 5,417 33,665 14,544 -------- -------- -------- --------Total operating expenses 90,465 45,024 237,998 119,491 -------- -------- -------- --------Operating income 131,587 71,284 349,398 181,448Interest and other income, net 4,892 2,794 15,166 7,730 -------- -------- -------- --------Income before provision for income taxes 136,479 74,078 364,564 189,178Provision for income taxes 52,135 27,779 139,263 70,942 -------- -------- -------- --------Net income $ 84,344 $ 46,299 $225,301 $118,236 ======== ======== ======== ========Net income per share $ .32 $ .18 $ .85 $ .46 ======== ======== ======== ========Number of shares used in per-share calculation 266,126 258,801 265,020 257,609 ======== ======== ======== ========
The net income per share and number of shares used in per-sharecalculations for all periods presented reflect the two-for-one stock splitwhich was effective March 4, 1994.
Cisco Systems' fiscal year is a 52 or 53 week year ending on the lastSunday of July. The 53rd week in fiscal 1994 was included in the secondquarter ended January 30, 1994. Fiscal 1993 was a 52 week year.
Cisco Systems, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) May 1, July 25, 1994 1993 ----------- -----------Assets (Unaudited)Current assets: Cash and equivalents $ 95,171 $ 27,247 Short-term investments 81,438 61,738 Accounts receivable, net 202,164 129,109 Inventories 33,111 23,500 Deferred income taxes 37,915 19,721 Other current assets 14,165 6,981 --------- --------- Total current assets 463,964 268,296Investments 311,093 235,360Restricted investments 75,900 38,900Property and equipment, net 70,146 48,672Other assets 8,567 3,985 --------- --------- Total assets $929,670 $595,213 ========= =========Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $143,941 $102,236 Income taxes payable 35,228 17,796 --------- --------- Total current liabilities 179,169 120,032Shareholders' equity 750,501 475,181 --------- --------- Total liabilities and shareholders' equity $929,670 $595,213 ========= =========
