San Jose, California, May 9, 1996 -- Cisco Systems, Inc.,.(NASDAQ: CSCO),the leading global supplier of internetworking solutions, today reportedits third quarter results for the period ending April 28, 1996. Net salesfor the third quarter were $985.1 million, compared to last year's resultsfor the same period of $509.9 million, an increase of 93%. Net income was$229.7 million, or $.39 per share, versus $125.0 million or $.22 per shareduring the third quarter last year, an increase of 84% and 77%respectively.
Net sales for the nine months were $2,521.8 million, compared to $1,357.7million for the same period last year, an increase of 86%. Net income was$594.8 million, or $1.02 per share, versus $277.3 million or $.50 per shareduring the first nine months of fiscal 1995, an increase of 114% and 104%,respectively, including extraordinary charges from the January 11, 1995 netasset acquisition of LightStream Corporation. In this transaction, Ciscotook a one-time pre-tax charge of $95.8 million, or $.11 per share on anafter tax basis in the second quarter of fiscal 1995 as a write off ofin-process LightStream R&D.
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 February 16, 1996.
"We are pleased to report a strong financial performance for Cisco's thirdfiscal quarter of 1996," said John Chambers, president and CEO. "Cisco'sproduct leadership combined with the depth and breadth of our solutions isearning us a strategic status with many of our customers. Our position isstrengthening as customers increasingly seek a single vendor that canprovide end-to-end local area network and wide area network solutions."
Cisco continued to expand its capabilities in the networking market byproviding infrastructure, access, and applications through keyacquisitions, new product announcements and alliances.
Broadening its infrastructure offerings, this quarter Cisco announced anagreement to acquire StrataCom, Inc., a leader in large-scale wide areanetwork (WAN) switching. Together, StrataCom and Cisco will providecomplete voice, data, and video solutions across public, private or hybridnetworks.
In the access space, Cisco began commercial deployment of the AS5200dial-up universal access server, introduced CiscoPro Internet AccessSolutions, and launched Cisco ClickStart, a Web-based software solutionthat enables first-time users to install an access router in minutes.
On the application side, Cisco's acquisition of TGV closed in March, 1996,and the company announced the integration of Internet Junction's gatewaytechnology into its solid state platforms providing Novell environments forsimple, secure access to IP networks.
Cisco entered into a number of key alliances in the quarter including atechnology agreement with Hewlett-Packard for Cisco IOS software deploymentin 100VG environments, with Intel for joint development of virtual localarea networks (VLAN's), and with Olicom for joint development of Token Ringtechnology. In Japan, Cisco announced a pact with 11 Japanese companies todevelop an international standard for use of multimedia applications acrosswide-area networks.
Cisco Systems, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) April 28, July 30, 1996 1995 ----------- ---------- (unaudited)AssetsCurrent assets: Cash and equivalent $ 188,583 $ 204,846 Short-term investments 479,503 234,681 Accounts receivable, net 529,687 384,242 Inventories 313,855 71,160 Deferred income taxes 65,279 75,297 Other current assets 61,292 25,743 ---------- --------- Total current assets 1,638,199 995,969Investments 758,753 403,855Restricted investments 211,594 173,073Property and equipment, net 229,604 136,635Other assets 55,527 47,747 ---------- ---------- Total assets $2,893,677 $1,757,279 ========== ==========Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable and other accrued expenses $ 528,756 $ 266,173 Income taxes payable 128,315 71,583 ---------- ---------- Total current liabilities 657,071 337,756Minority interest 41,253 40,792Shareholders' equity 2,195,353 1,378,731 ---------- ---------- Total liabilities and shareholders' equity $2,893,677 $1,757,279 ========== ==========. Cisco Systems, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts) Quarters Ended Nine Months Ended ------------------ ------------------- April 28, April 30, April 28, April 30, 1996 1995 1996 1995 --------- -------- --------- -------- (Unaudited)Net sales $985,147 $509,910 $2,521,820 $1,357,732Cost of sales 338,782 165,522 850,782 441,695 -------- -------- ---------- --------- Gross margin 646,365 344,388 1,671,038 916,037Operating expenses: Research and development 89,277 43,992 225,404 112,158 Sales and marketing 169,817 88,868 445,723 235,644 General and administrative 34,886 20,652 89,448 51,612 Purchased R&D 0 0 0 95,760 -------- -------- -------- --------Total operating expenses 293,980 153,512 760,575 495,174 -------- -------- -------- --------Operating income 352,385 190,876 910,463 420,863Interest and other income, net 15,103 10,785 41,180 26,371 -------- -------- -------- --------Income before provision for income taxes 367,488 201,661 951,643 447,234Provision for income taxes 137,808 76,631 356,866 169,949 -------- -------- -------- --------Net income $229,680 $125,030 $594,777 $277,285 ======== ======== ======== ========Net income per share $ .39 $ .22 $ 1.02 $ .50 ======== ======== ======== ========Shares used in per- share calculation 588,616 557,744 583,575 551,437 ======== ======== ======== ========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 February 16, 1996.
Posted: Thu May 9 13:40:38 PDT 1996
