San Jose, Calif., May 11, 1995 -- Cisco Systems, Inc., (NASDAQ: CSCO), theleading manufacturer of internetworking systems and software, todayreported its third quarter results for the period ending April 30, 1995.
Net sales for the third quarter were $509,910,000 and net income was$125,030,000, or $.45 per share. This compares with net sales of$331,193,000 and net income of $84,344,000, or $.32 per share in thesame period last year, and are increases of 54 percent, 48 percent, and 41 percent, respectively.
Net sales for the nine months were $1,357,732,000 and net income was$277,285,000 or $1.01 per share. This compares to net sales of$881,816,000 and net income of $225,301,000, or $.85 per share in the same period last year, and are increases of 54 percent, 23 percent, and 19 percent, respectively.
In the secondquarter, the period ended January 29, 1995, Cisco acquiredthe assets of LightStream Corporation and took a one-time pre-taxcharge of$95,760,000, or $.21 per share on an after tax basis, as a write off ofin-process LightStream R&D. Pro forma net income for the nine months,excluding this charge, was $336,656,000, or $1.22 per share compared with$225,301,000, or $.85 per share in the same period last year, and areincreases of 49 percent and 44 percent, respectively.
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.
"We are very pleased to report a solid third quarter from a financialperspective. The quarter was highlighted by product introductions andstrategic alliances which strengthen Cisco's leadership position in the Local Area Network(LAN) switching market," said John Chambers, president and CEO ofCisco.
"Cisco introduced an array of products that bring LAN and ATM(Asynchronous Transfer Mode) switching, routing and virtualLANcapabilities together, enabling our customers to build and manage largeswitched networks. These products include amulti-layermodular switch and a 100 Base-T Fast Ethernet interface for the Cisco 7000series of high-end routers.
"Focusing on our Token Ring switching strategy, this quarter we announceda key alliance with MadgeNetworks to resell and jointly develop Token Ringswitching technology. On May 5, 1995, we announced an agreement withIBM involving technology transfer, joint product development and product salesin the area of LAN switching.
"Cisco continues to take a product leadership position in the industry.This quarter Network Computing presented us with two awards -- the Cisco7000 won a Product of the Year award."
Cisco Systems, Inc.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.CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
April 30, July 31, 1995 1994 ----------- ---------- (unaudited)AssetsCurrent assets: Cash and equivalent $ 107,010 $ 53,567 Short-term investments 257,572 129,219 Accounts receivable, net 355,504 237,570 Inventories 52,864 27,896 Deferred income taxes 60,428 46,739 Other current assets 18,308 12,686 ---------- --------- Total current assets 851,686 507,677
Investments 401,845 371,494Restricted investments 114,650 85,900Property and equipment, net 119,554 77,449Other assets 51,489 11,174 ---------- ---------- Total assets $1,539,224 $1,053,694 ========== ==========
Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 266,977 $ 162,554 Income taxes payable 50,197 42,958 ---------- ---------- Total current liabilities 317,174 205,512
Minority interest 40,615
Shareholders' equity 1,181,435 848,182 ---------- ---------- Total liabilities and shareholders' equity $1,539,224 $ 1,053,694 ========== ==========
Cisco Systems, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts)
Quarters Ended Nine Months Ended ------------------ ------------------- April 30, May 1, April 30, May 1, 1995 1994 1995 1994 --------- -------- --------- -------- (Unaudited)
Net sales $509,910 $331,193 $1,357,732 $881,816Cost of sales 165,522 109,141 441,695 294,420 -------- -------- ---------- -------- Gross margin 344,388 222,052 916,037 587,396
Operating expenses: Research and development 43,992 23,311 112,158 62,916 Sales and marketing 88,868 55,358 235,644 141,417 General and administrative 20,652 11,796 51,612 33,665 Purchased R&D 0 0 95,760 0 -------- -------- -------- --------Total operating expenses 153,512 90,465 495,174 237,998 -------- -------- -------- --------Operating income 190,876 131,587 420,863 349,398
Interest and other income, net 10,785 4,892 26,371 15,166 -------- -------- -------- --------Income before provision for income taxes 201,661 136,479 447,234 364,564
Provision for income taxes 76,631 52,135 169,949 139,263 -------- -------- -------- --------Net income $125,030 $ 84,344 $277,285 $225,301 ======== ======== ======== ========Net income per share $ .45 $ .32 $ 1.01 $ .85 ======== ======== ======== ========Shares used in per- share calculation 278,872 266,126 275,719 265,020 ======== ======== ======== ========
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: May 11 13:42:21 1995
