SAN JOSE, Calif., August 17, 1995 -- Cisco Systems, Inc., (NASDAQ:CSCO), the leading global supplier of internetworking solutions, todayreported its fourth quarter and annual results for the period ending July30, 1995. Net sales for the fourth quarter were $621,184,000, an increaseof 72% compared to last year's results for the sameperiod of $361,159,000.Net income was $143,723,000, or $.51 per share, an increase of 60% and 50%respectively, versus $89,566,000 or $.34 per share during the fourthquarter last year.
Net sales for the 1995 fiscal year were $1,978,916,000, an increase of59% compared to fiscal 1994 revenues of $1,242,975,000. Net income was$421,008,000, or $1.52 per share, an increase of 34% and 28% respectively,compared to the previous year's $314,867,000 or $1.19 per share. The fiscal1995 results include a one-time pre tax charge of $95,760,000, or $.21 pershare, incurred by the company upon acquisition of the assets ofLightStream Corporation in the second quarter.
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 1995 was a 52 week year.
"We are pleased to report that in addition to a strong financialperformance, Cisco continues to grow faster than our traditionalcompetitors," said John Chambers, president and CEO of Cisco. "Revenue inthe fourth quarter increased 22% over the previous quarter. Overall, fiscal1995 was an outstanding year for us."
As the internetworking industry and its link to the Internet andbusiness applications evolve, customers increasingly seek end-to-endnetwork solutions from a single vendor. To address these needs, Ciscobroadened its product set to offer complete enterprise solutions, withCisco Internetwork Operating System (CiscoIOS) software as the consistent fabric of the network.
Rapid industry change continues to create opportunities for smallaggressive players. To remain competitive against these, Ciscoreorganizedinto five distinct business units -- Core, Access, Workgroup, ATM(Asynchronous Transfer Mode), and the IBM Market.
"Focused business units provide the balance between the resourcesof a large organization, and the spirit and agility of a smallerentrepreneurial one," said Chambers. "While leveraging economies of scalein areas like manufacturing, sales and support, the business units can movequickly in product development and expedite time to market."
Acquisitions and strategic alliances continue to play a key role inCisco's growth. Acquisitions this year include Kalpana Inc., now apart of the Workgroup business unit, which enables Cisco to offer a more completefamily of LAN switching products. In theATM switching arena, thecompany purchased the assets of LightStream Corp., which now forms Cisco's ATMbusiness unit. Newport Systems Solutions, which provides PC-based internetworking technologies, has become a part of the Access business unit. And most recently, Cisco announced their intent to acquire CombinetInc, a leader in ISDN networking products, also to become a part of the Access business unit.
Cisco IOS continues to extend its reach as an integrated componentin the products of partners like Compaq, Hewlett-Packard, UBNetworks, Cabletron, and U.S. Robotics.
To bridge the gap between today's public and private networks,Cisco continues to expand and strengthen its relationships with carriersand telephone companies including AT&T, America Online, British Telecom,CompuServe, MCI, and Sprint.
"I am proud of the outstanding accomplishments of our employees andpartners in fiscal 1995. As we enter fiscal 1996, we remain optimisticabout the growth and potential of the internetworking industry," saidChambers.
Cisco Systems, Inc. is the leadingglobal supplier of enterprisenetworks, including routers, LAN and ATM switches, dial-up accessservers and network management software.
Cisco Systems, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 30, July 31, 1995 1994 --------- ---------AssetsCurrent assets: Cash and equivalents $ 204,846 $ 53,567 Short-term investments 234,681 129,219 Accounts receivable, net 384,242 237,570 Inventories 71,160 27,896 Deferred income taxes 75,297 46,739 Other current assets 25,743 12,686 ---------- ---------- Total current assets 995,969 507,677Investments 403,855 371,494Restricted investments 173,073 85,900Property and equipment, net 136,635 77,449Other assets 47,747 11,174 ---------- ---------- Total assets $1,757,279 $1,053,694 ========== ==========Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 266,173 $ 162,554 Income taxes payable 71,583 42,958 ---------- ---------- Total current liabilities 337,756 205,512Minority interest 40,792Shareholders' equity 1,378,731 848,182 ---------- ---------- Total liabilities and shareholders' equity $1,757,279 $1,053,694 ========== ========== Cisco Systems, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts) Quarters Ended Years Ended -------------------- -------------------- July 30, July 31, July 30, July 31, 1995 1994 1995 1994 --------- --------- --------- --------- (Unaudited)Net sales $ 621,184 $361,159 $1,978,916 $1,242,975Cost of sales 202,457 118,404 644,152 412,824 --------- --------- --------- --------- Gross margin 418,727 242,755 1,334,764 830,151Operating expenses: Research and development 52,661 25,837 164,819 88,753 Sales and marketing 119,078 64,380 354,722 205,797 General and administrative 24,912 13,820 76,524 47,485 Purchased R&D 0 0 95,760 0 --------- --------- --------- --------- Total operating expenses 196,651 104,037 691,825 342,035 --------- --------- --------- ---------Operating income 222,076 138,718 642,939 488,116Interest and other income, net 9,736 6,211 36,107 21,377 --------- --------- --------- ---------Income before provision for income taxes 231,812 144,929 679,046 509,493Provision for income taxes 88,089 55,363 258,038 194,626 --------- --------- --------- ---------Net income $ 143,723 $ 89,566 $421,008 $314,867 ========= ========= ========= =========Net income per share $ .51 $ .34 $ 1.52 $ 1.19 ========= ========= ========= =========Shares used in per- share calculation 281,119 265,144 277,298 265,051 ========= ========= ========= =========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 1995 was a 52 week year.
Posted: Wed Dec 9 16:03:43 PST 1998
