San Jose, California, February 8, 1996 -- Cisco Systems, Inc., (NASDAQ:CSCO), the leading global supplier of internetworking solutions, todayreported its second quarter results for the period ending January 28, 1996.Net sales for the second quarter were $826.5 million, compared to lastyear's results for the same period of $454.9 million, an increase of82%.Net income was $196.3 million, or $.67 per share, versus $53.5 million or$.19 per share during the second quarter last year, an increase of 267% and253% respectively.
On January 11, 1995 Cisco acquired theassets of LightStream Corporationand took a one-time pre-tax charge of $95.8 million, or $.21 per share onan after tax basis in the second quarter of fiscal 1995 as a write off ofin-process LightStream R&D. Pro forma net income, excluding this charge forthe second quarter last year, was $112.9 million, or $.40 per sharecompared with $196.3 million, or $.67 per share in the second quarter ofthis fiscal year, an increase of 74% and 67% respectively.
Net sales for the six months were $1,536.7 million, compared to $847.8million for the same period last year, an increase of 81%. Net income was$365.1 million, or $1.26 per share, versus $152.3 million or $.56 per shareduring the first six months of fiscal 1995, an increase of 140% and 125%,respectively, including extraordinary charges from the LightStreamacquisition.
On January 23, 1996 Cisco's board of directors authorized a two-for-onestock split to be effective on February 16, 1996. When restated forthesplit, earnings per share will be $.34 and $.10 for the second quarter offiscal 1996 and fiscal 1995 respectively. For the six months ended infiscal 1996 and fiscal 1995, earnings per share will be $.63 and $.28respectively.
"We are pleased to report a very solid financial performance for Cisco'ssecond fiscal quarter of 1996," said John Chambers, presidentand CEO ofCisco. "This quarter we continued to strengthen our leadership position inboth enterprise access and Internet access with new product introductions,new services, strategic alliances and acquisitions."
The rapid adoption of enterprise internetworking and the growing popularityof the Internet have created an increasing demand for Integrated ServicesDigital Network (ISDN) and modem technologies, which in turn aredrivingthe need for secure universal access solutions for enterprise customers andservice providers. Cisco has introduced a suite of new central site andremote dial-up access products and services which address these needs.
The remote access products announced in the quarter include Cisco's newfamily of Universal Access Servers, the AS5200; CiscoSecure, anintegrated,centralized security server; and five new PC dial-up solutions.
To further strengthen the company's universal access solutions, Ciscoexpanded its alliance with Madge Networks through a joint technologyagreement for Teleos technology, and entered into a pact with Microcomfor managed modem technology.
This quarter Cisco also announced an agreement to acquire TGV SoftwareInc., a leading supplier of enterprise software products.
Broadening Cisco's solutions for secure, simplified access to the Internetand World Wide Web, the company recently announced CiscoAdvantage, aset ofsoftware products which help network managers cope with the growing demandsfor Internet access. In addition, the company signed a licensingagreement with Netscape Communications.
Cisco Systems is the leading global supplier ofenterprise internetworkingsolutions, including routers, LAN and ATM switches, dial-up accessservers,and network management software. These products, integrated by the CiscoIOS(tm) software, link geographically dispersed LANs, WANs, and IBMnetworks. Cisco news and product/service information are available at WorldWide Web site http://www.cisco.com. Cisco is headquartered in San Jose,California.
Cisco Systems, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
January 28, July 30, 1996 1995 ----------- ---------- (unaudited)AssetsCurrent assets: Cash and equivalent $ 123,823 $ 204,846 Short-term investments 356,482 234,681 Accounts receivable, net 491,223 384,242 Inventories 221,579 71,160 Deferred income taxes 90,450 75,297 Other current assets 52,141 25,743 ---------- --------- Total current assets 1,335,698 995,969
Investments 601,215 403,855Restricted investments 189,473 173,073Property and equipment, net 184,601 136,635Other assets 54,845 47,747 ---------- ---------- Total assets $2,365,832 $1,757,279 ========== ==========
Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 416,390 $ 266,173 Income taxes payable 97,181 71,583 ---------- ---------- Total current liabilities 513,571 337,756
Minority interest 40,933 40,792
Shareholders' equity 1,811,328 1,378,731 ---------- ---------- Total liabilities and shareholders' equity $2,365,832 $1,757,279 ========== ==========
. Cisco Systems, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts)
Quarters Ended Six Months Ended ------------------ --------------------- Jan. 28, Jan. 29, Jan. 28, Jan. 29, 1996 1995 1996 1995 --------- -------- --------- -------- (Unaudited)Net sales $826,482 $454,897 $1,536,673 $847,822Cost of sales 277,597 148,204 512,000 276,173 -------- -------- ---------- -------- Gross margin 548,885 306,693 $1,024,673 571,649
Operating expenses: Research and development 73,262 38,118 136,127 68,166 Sales and marketing 146,895 78,454 275,906 146,776 General and administrative 28,826 16,045 54,562 30,960 Purchased R & D 0 95,760 0 95,760 -------- -------- -------- -------- Total operating expenses 248,983 228,377 466,595 341,662 -------- -------- -------- --------Operating income 299,902 78,316 558,078 229,987
Interest and other income, net 14,258 7,950 26,077 15,586 -------- -------- -------- --------Income before provision for income taxes 314,160 86,266 584,155 245,573
Provision for income taxes 117,810 32,781 219,058 93,318 -------- -------- -------- --------Net income $196,350 $ 53,485 $365,097 $152,255 ======== ======== ======== ========Net income per share* $ .67 $ .19 $ 1.26 $ .56 ======== ======== ======== ========Shares used in per- share calculation* 292,647 278,622 289,569 274,142 ======== ======== ======== ========* Does not reflect the effect of the two-for-one stock split.
Posted: Wed Jun 18 13:43:34 PDT 1997
