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- Cisco Systems 1998 AnnualReport
- Cisco Systems First Quarter Earnings
- Cisco Systems Second Quarter Earnings
- Cisco Systems Third Quarter Earnings
SAN JOSE, California -- August 10, 1999 -- Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its fourth quarter and annual results for the period which ended on July 31, 1999. Cisco closed its fiscal year with revenue of $12.15 billion, an increase of 43% over the previous year.
Net sales for the fourth quarter were $3.55 billion, compared with $2.40 billion for the same period last year, an increase of 48%. Pro forma net income, which excludes the write-off of purchased in-process R&D and acquisition-related costs discussed below, was $727 million or $0.21 per share, compared with pro forma net income of $525 million or $0.16 per share for the fourth quarter of 1998, increases of 38% and 31% respectively.
During the fourth quarter of fiscal 1999, Cisco completed the acquisition of Amteva Technologies, Inc., for approximately $159 million and took a one-time charge of $81 million as a write-off of purchased in-process R&D. Additionally, Cisco completed the acquisition of GeoTel Communications Corporation in a transaction accounted for as a pooling of interests and incurred acquisition-related costs of approximately $16 million. All historical financial information contained herein has been restated to reflect this acquisition9. Other pooling transactions completed this quarter include Fibex Systems and Sentient Networks.
Actual net income for the fourth quarter, including the above-mentioned write-off of purchased in-process R&D and acquisition-related costs, was $635 million or $0.18 per share, compared with $493 million or $0.15 per share in the same period last year.
Net sales for fiscal 1999 were $12.15 billion, compared with $8.49 billion for the same period last year, an increase of 43%. Pro forma net income was $2.55 billion or $0.75 per share, compared with pro forma net income of $1.88 billion or $0.58 per share during fiscal 1998, increases of 35% and 29% respectively. Actual net income for fiscal 1999 was $2.10 billion or $0.62 per share, versus actual net income of $1.35 billion or $0.42 per share for the same period last year.
The net income per share and number of shares used in the per-share calculation for all periods presented reflect the two-for-one stock split that was effective June 21, 1999.
"The Internet is emerging as a major force behind the strongest U.S. economy in history," said John Chambers, president and CEO of Cisco Systems. "By providing the systems that make the Internet work, Cisco is playing a major role in helping customers thrive in the explosive Internet economy. As a result, we are growing faster than all of our key competitors and have been the fastest growing and most profitable company in the history of the computer industry."
Cisco continues to advance its end-to-end Internet solutions for each of its key markets.In the service provider marketplace, Cisco is delivering New World Internet communication solutions based on a single integrated data, voice, and video network. Leading international and U.S. service providers are beginning to deploy integrated networks based on Internet Protocol (IP) services. For example, Qwest and Cisco extended their strategic alliance to include the build-out of the first end-to-end, all-Internet-based network.
To enable service providers to migrate their data networks to New World networks, Cisco broadened its portfolio of voice solutions by introducing five new multiservice products. It also extended its reach to the consumer with 11 new broadband access products that allow service providers to deploy high-speed networks to the home.
Cisco also announced two acquisitions in the service provider space. TransMedia Communications, a developer of gateway technology that migrates traditional voice traffic from circuit-based networks onto packet networks, and StratumOne Communications, whose optical internetworking brings silicon technology capable of transporting data at 10 Gbps for the next-generation public networks.
In the alliance space, yesterday Cisco announced plans to invest $1 billion in KPMG Consulting's Internet services business to deliver Internet-based services for telecommunication and enterprise markets. This announcement underscores the trend toward a new business model where solutions are provided through an Internet ecosystem of partners. This ecosystem is based on open standards and allows hundreds of companies to participate in bringing best-of-breed solutions to customers.
In addition, Cisco, Hewlett-Packard Company, and KPMG announced an alliance to deliver integrated operational and business support solutions to help service providers deploy new services such as voice over IP (VoIP) and virtual private networks (VPNs).
In a joint venture, Cisco and Motorola strengthened their strategic relationship through an agreement to purchase the fixed wireless assets of Bosch Telecom, forming a jointly owned company called SpectraPoint Wireless, to deliver fixed wireless solutions. The creation of SpectraPoint brings the New World Internet to the wireless industry.
In the small and medium-sized marketplace, Cisco delivered two new platforms to strengthen its New World Internet strategy. The Cisco 1750 and 805 series products will help small businesses deploy integrated voice capabilities and security features on existing data networks. Other highlights include the introduction of the Catalyst. 3500 series XL stackable switch, which brings enterprise-equivalent capabilities to small and medium-sized businesses.
In the enterprise market, Cisco furthered its New World vision by delivering comprehensive voice solutions to each of its key platforms. Cisco added voice capabilities to the Cisco 7200 series completing its initial goal of bringing voice to all major products in the enterprise family. Cisco also announced new high-speed network features to the Catalyst 8500 family, creating a single platform for integrated data, voice, and video solutions.
"The Internet is changing every aspect of our lives and is driving the global Internet economy. Cisco is proud to play a key role in leading this new economy. We'd like to thank our shareholders, customers, employees, partners, and suppliers for their commitment and continued confidence in us this past year," concluded Chambers.
Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. at http://www.cisco.com.9All restated quarterly financial information dating back to fiscal 1997 can be found on the Cisco Web site under Investor Relations.
This release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company that involve risks and uncertainties. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed by Cisco with the SEC, specifically the most recent reports on Form 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including risks associated with acquisition strategy, dependence on new product offerings, competition, patents, intellectual property and licensing, future growth, rapid technological and market change, manufacturing and sourcing risks, Internet infrastructure and regulation, international operations, volatility of stock price, financial risk management and potential volatility in operating results, among others.
Cisco, Cisco IOS, Cisco Systems, Catalyst, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any of its resellers. (9907R)
