San Jose, California, August 18, 1994 -- Cisco Systems, Inc., (NASDAQ:CSCO), the leading manufacturer of internetworking systems and software,today reported its fourth quarter results for the period ending July 31,1994. Net sales for the fourth quarter were $361,159,000 and net income was$89,566,000 or $.34 per share. This compares with net sales of$205,223,000 and net income of $53,719,000, or $.21 per share in thesameperiod last year, and are increases of 76 percent, 67 percent, and 62percent, respectively.
Net sales for the 1994 fiscal year were $1,242,975,000, and net incomewas $314,867,000 or $1.19 per share versus net sales of $649,035,000 andnet income of $171,955,000, or $.67 per share for fiscal 1993. The fiscal1994 numbers are increases of 92 percent, 83 percent, and 78 percent,respectively over the prior fiscal year.
The net income per share and number of shares used in per-sharecalculations for the periods ended July 25, 1993 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.
On August 17, 1994, Cisco's board of directors approved a stockrepurchase plan authorizing the repurchase of up to 7,000,000 shares ofCisco common stock to be used to meet the Company's common stockrequirements for its employee stock plans. Repurchases will be made fromtime to time in open market or privately negotiated transactions. The planauthorizes, but does not require, the Company to repurchase all 7,000,000shares. Actual repurchases in any period will depend on market conditionsand other factors and could be in substantially lesser amounts.
"From a results perspective, we are pleased to report that net salesgrew at a slightly faster rate in fiscal year 1994 than in fiscal year1993," said John Morgridge, president and CEO of Cisco. "For net sales wegrew at a 92 percent increase from fiscal 1993 to 1994, compared to 91percent from fiscal 1992 to 1993.
"From a product introduction perspective, fiscal year 1994 was anoutstanding year for Cisco as we established ourselves as the leadinginternetworking product vendor, building on our worldwide market leadershipin routers. Highlights included our announcement of the first ATM switch tointegrate the ATM Forum's ATM routing standard, the first full-speed155-Mbps ATM routerinterface, and the company's first LAN switch. "As important as these efforts are, however, this year should beremembered as a year of Cisco alliances for the future. In fiscal 1994 weannounced our first two acquisitions, CrescendoCommunications and NewportSystems, adding key technologies for the workgroup and accessmarkets toour existing R&D strengths. We also took our first equity position inanother market leader -- CascadeCommunications -- and announced overtwenty other agreements with technology and market leaders, includingIBM,Microsoft,and Alcatel.
"And we closed the year with what we believe to be one of the mostsignificant agreements in the industry to date -- a jointventure betweenCisco and 13 leading Japanese companies. The intent of the joint ventureis for Cisco to work closely with the partners, including all of the leadingJapanese PC, mainframe, and switch manufacturers, to provide interoperableinternetworking products that will, in turn, allow the Japanese market torealize accelerated growth.
"I am proud of the outstanding accomplishments of our employees,partners, consultants, and suppliers in fiscal 1994, and as we enter fiscal1995 we remain optimistic about the growth prospects for theinternetworking industry."
Cisco Systems, Inc., is a leading global supplier of internetworkingproducts, including routers, access servers, ATM switches, LAN switches,and software routers.
Cisco Systems, Inc.Net income per share and shares used in per-share calculations for theperiods ended July 25, 1993 reflect the two-for-one stock split which waseffective March 4, 1994.CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
July 31, July 25, 1994 1993 ----------- ----------
AssetsCurrent assets: Cash and equivalents $ 53,567 $ 27,247 Short-term investments 129,219 61,738 Accounts receivable, net 237,570 129,109 Inventories 27,896 23,500 Deferred income taxes 46,739 19,721 Other current assets 12,686 6,981 ----------- ----------- Total current assets 507,677 268,296
Investments 371,494 235,360Restricted investments 85,900 38,900Property and equipment, net 77,449 48,672Other assets 11,174 3,985 ----------- ----------- Total assets $1,053,694 $ 595,213 =========== ===========
Liabilities and Shareholders' Equity
Current liabilities: Accounts payable and other accrued expenses $ 162,554 $ 102,236 Income taxes payable 42,958 17,796 ----------- ----------- Total current liabilities 205,512 120,032
Shareholders' equity 848,182 475,181 ----------- ------------ Total liabilities and shareholders' equity $1,053,694 $ 595,213 =========== ============
Cisco Systems, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts)
Quarters Ended Years Ended ------------------ ------------------- July 31, July 25, July 31, July 25, 1994 1993 1994 1993 --------- -------- --------- -------- (Unaudited)
Net sales $361,159 $205,223 $1,242,975 $649,035Cost of sales 118,404 67,655 412,824 210,528 -------- -------- ---------- -------- Gross margin 242,755 137,568 830,151 438,507
Operating expenses: Research and development 25,837 13,692 88,753 44,254 Sales and marketing 64,380 35,332 205,797 109,717 General and administrative 13,820 6,421 47,485 20,965 -------- -------- -------- -------- Total operating expenses 104,037 55,445 342,035 174,936 -------- -------- -------- --------Operating income 138,718 82,123 488,116 263,571
Interest and other income, net 6,211 3,827 21,377 11,557 -------- -------- -------- --------Income before provision for income taxes 144,929 85,950 509,493 275,128
Provision for income taxes 55,363 32,231 194,626 103,173 -------- -------- -------- --------Net income $ 89,566 $ 53,719 $314,867 $171,955 ======== ======== ======== ========
Net income per share $ .34 $ .21 $ 1.19 $ .67 ======== ======== ======== ========Shares used in per- share calculation 265,144 259,705 265,051 258,133 ======== ======== ======== ========
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. ANNUAL GROWTH FACTORS (In thousands except per-share amounts) ---------------------------------------- FY 1994 FY 1993 FY 1992 FY 1991 ---------- -------- -------- --------Net sales $1,242,975 $649,035 $339,623 $183,184Note (1) FY 1994 includes $70,273 of product shipments where theinternational customer has taken delivery in the United States, where theultimate destination is international. FY 1993 has been restated toreflect $17,817 of these shipments which were previously reported as UnitedStates sales. FY 1992 and FY 1991 have not been restated.Net Income 314,867 171,955 84,386 43,189
Net Income per share 1.19 0.67 0.33 0.17
Percentage of return on net sales 25.3 26.5 24.8 23.6
Sales by Geography United States $ 722,488 $396,119 $217,314 $118,052 percentage of total sales 58.1 61.0 64.0 64.4
International (1) 520,487 252,916 122,309 65,132 percentage of total sales 41.9 39.0 36.0 35.6
Total assets $1,053,694 $595,213 $323,933 $154,145
Shareholders' equity 848,182 475,181 245,610 127,459
Percentage of return on average equity 47.6 47.7 45.2 43.9
Weighted average shares outstanding 265,051 258,133 254,072 250,320
Common share count at year end 257,697 247,416 240,444 228,152
Book value per common share $3.29 $1.92 $1.02 $0.56
Number of employees 2,262 1,451 882 505
Revenue per employee $ 549,503 $447,302 $385,060 $362,741
Net income per employee $ 139,198 $118,508 $ 95,676 $ 85,523
Cisco Systems, Inc. ANNUAL GROWTH FACTORSNote (1) FY 1994 includes $70,273 of product shipments where theinternational customer has taken delivery in the United States, where theultimate destination is international. FY 1993 has been restated toreflect $17,817 of these shipments which were previously reported as UnitedStates sales. FY 1992 and FY 1991 have not been restated.Year-Over-Year Percentage Change -------------------------------- '94/'93 '93/'92 '92/'91 -------- -------- --------Net sales 92 91 85
Net Income 83 104 95
Net Income per share 78 103 94
Return on net sales -1.2pts +1.7pts +1.2pts
Sales by Geography United States 82 82 84
International (1) 106 107 88
Total assets 77 84 110
Shareholders' equity 78 93 93
Percentage of return on average equity -0.1pts +2.5pts +1.3pts
Weighted avg. shares outstanding 3 2 1
Common share count at year end 4 3 5
Book value per common share 71 88 82
Number of employees 56 65 75
Revenue per employee 23 16 6
Net income per employee 17 24 12
Posted: Aug 18 13:30:16 1994
