San Jose, Calif., Feb. 9, 1995 -- Cisco Systems, Inc., (NASDAQ: CSCO),the leading manufacturer of internetworking systems and software, todayreported its second quarter results for the period ending January 29, 1995.
Net sales for the second quarter were $454,897,000 and net income was$53,485,000, or $.19 per share. This compares with net sales of$302,166,000 and net income of $77,472,000, or $.29 per share in thesameperiod last year. This represents an increase of 51 percent in netsales and decreases of 31 percent and 34 percent in net income and per shareearnings, respectively.
On January 11, 1995 Cisco acquired the assets ofLightStreamCorporation and took a one-time pre-tax charge of $95,760,000, or $.21per share on an after tax basis, in this fiscal quarter as a write off ofin-process LightStream R&D. Pro forma net income, excluding this charge,was $112,856,000, or $.40 per share compared with $77,472,000, or $.29 pershare in the same period last year.
Net sales for the six months were $847,822,000 and net income was$152,255,000 or $.56 per share. This compares to net sales of $550,623,000and net income of $140,957,000, or $.53 per share in the same period lastyear, and are increases of 54 percent, 8 percent, and 6 percent,respectively.
The net income per share and number of shares used in per-sharecalculations for the periods ended January 30, 1994 reflect thetwo-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.
"We are pleased to report that in addition to a strong financialperformance, Cisco's second fiscal quarter of 1995 marked two strategicacquisitions, along with a number of alliances and new productintroductions," said John Chambers, president and CEO of Cisco.
"Our pooling of interest acquisition of KalpanaInc., whichwas finalized in December, will expand Cisco's switching product line toinclude low-end and stackable ethernet switching products. This acquisitioncomplements our current chassis based high-end switching products.
In January wepurchased the assets of LightStream Corporation, adeveloper of enterprise-class Asynchronous Transfer Mode (ATM) switchingtechnology, allowing Cisco to offer its customers a choice of the keytechnologies needed for the switched internetworks of tomorrow; enterpriseATM switching, workgroup ATM switching, LAN switching and routing.
"Cisco products continue to distinguish themselves. This quarter the7010, thesecond product offering in our high-end router line,won a Product of the Year award from LAN Magazine, while Cisco's ChannelInterface Processor (CIP) and the LightStream 2020,thehigh-end ATM switch, each won a Hot Product of the Year award from DataCommunications Magazine."
From an organizational perspective, on January 31, 1995 JohnMorgridgebecame chairman of the board. Donald Valentine will continue on theboard as vice chairman. John Chambers, formerly Cisco's executive vicepresident,became president and CEO. Larry Carter joined Cisco from Advanced MicroDevices in January as vice president of finance and administration and CFO.
Cisco Systems, Inc.Net income per share and shares used in per-share calculations for theperiods ended January 30, 1994 reflect the two-for-one stock split whichwas effective March 4, 1994.CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
January 29, July 31, 1995 1994 ----------- ---------- (unaudited)AssetsCurrent assets: Cash and equivalent $ 94,241 $ 53,567 Short-term investments 164,799 129,219 Accounts receivable, net 295,878 237,570 Inventories 54,953 27,896 Deferred income taxes 55,161 46,739 Other current assets 12,826 12,686 ---------- --------- Total current assets 677,858 507,677
Investments 409,452 371,494Restricted investments 105,900 85,900Property and equipment, net 109,064 77,449Other assets 55,965 11,174 ---------- ---------- Total assets $1,358,239 $1,053,694 ========== ==========
Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 234,086 $ 162,554 Income taxes payable 47,237 42,958 ---------- ---------- Total current liabilities 281,323 205,512
Minority interest 40,597
Shareholders' equity 1,036,319 848,182 ---------- ---------- Total liabilities and shareholders' equity $1,358,239 $1,053,694 ========== ==========
Cisco Systems, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts)
Quarters Ended Six Months Ended ------------------ ------------------- Jan. 29, Jan. 30, Jan. 29, Jan. 30, 1995 1994 1995 1994 --------- -------- --------- -------- (Unaudited)Net sales $454,897 $302,166 $847,822 $550,623Cost of sales 148,204 101,522 276,173 185,279 -------- -------- ---------- -------- Gross margin 306,693 200,644 571,649 365,344
Operating expenses: Research and development 38,118 21,050 68,166 39,605 Sales and marketing 78,454 47,776 146,776 86,059 General and administrative 16,045 11,894 30,960 21,869 Purchased R & D 95,760 0 95,760 0 -------- -------- -------- -------- Total operating expenses 228,377 80,720 341,662 147,533 -------- -------- -------- --------Operating income 78,316 119,924 229,987 217,811
Interest and other income, net 7,950 5,435 15,586 10,274 -------- -------- -------- --------Income before provision for income taxes 86,266 125,359 245,573 228,085
Provision for income taxes 32,781 47,887 93,318 87,128 -------- -------- -------- --------Net income $ 53,485 $ 77,472 $152,255 $140,957 ======== ======== ======== ========Net income per share $ .19 $ .29 $ .56 $ .53 ======== ======== ======== ========Shares used in per- share calculation 278,622 265,056 274,142 264,468 ======== ======== ======== ========
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.
Posted: Feb 9 15:31:29 1995