SAN JOSE, CA–(Marketwire – Nov 4, 2009) -  Cisco (NASDAQ: CSCO)

Q1 Net Sales: $9.0 billion (decrease of 13% year over year) Q1 Net Income: $1.8 billion GAAP; $2.1 billion non-GAAP Q1 Earnings per Share: $0.30 GAAP (decrease of 19% year over year); $0.36 non-GAAP (decrease of 14% year over year) Total Cash, Cash Equivalents and Investments: $35.4 billion

Cisco (NASDAQ: CSCO), the worldwide personality in networking that transforms how people connect, promulgate and collaborate, currently reported the initial entertain formula for the duration finished Oct 24, 2009. Cisco reported initial entertain net sales of $9.0 billion, net income on a in all supposed accounting beliefs (GAAP) basement of $1.8 billion or $0.30 per share, and non-GAAP net income of $2.1 billion or $0.36 per share.

Commenting on the quarter, Chairman and Chief Executive Officer John Chambers noted, “Building off what we saw as a transparent tipping point in Q4, the Q1 formula one after another to simulate clever consecutive expansion trends that encounter or surpass expectations during normal mercantile times. We perspective the mending mercantile outlook, total with plain execution on the expansion strategy, as formulating forlorn event to expostulate some-more worth in to the core of the network. Simply said, we hold that key marketplace transitions opposite collaboration, virtualization and video will expostulate capability and expansion in network loads for the subsequent decade, and have been elaborating even faster than expected.”

Chambers continued, “Our capability to launch 4 due acquisitions, the ecosystem-shifting bloc with EMC/VMware, and five brand brand brand brand new products and attention solutions in to the Cisco tube in the past couple of months alone underscore this momentum. Our set up — buy — partner creation engine is obviously using on all cylinders, whilst the operational appurtenance is pulling costs out of the commercial operation even as we scale brand brand brand brand new models for growth. Execution and formula over time will denote the long-term stroke of this prophesy and plan — but a brand brand brand brand new indication of capability formed on partnership is obviously rising and we hold this might be the many surpassing event for businesses in the twenty-five years as a company.”

GAAP Results Q1 2010 Q1 2009 Vs. Q1 2009 Net Sales $9.0 billion $10.3 billion -12.7% Net Income $1.8 billion $2.2 billion -18.8% Earnings per Share $0.30 $0.37 -18.9% Non-GAAP Results Q1 2010 Q1 2009 Vs. Q1 2009 Net Income $2.1 billion $2.5 billion -15.3% Earnings per Share $0.36 $0.42 -14.3%

In Oct 2009, the Financial Accounting Standards Board released brand brand brand brand new accounting superintendence associated to income recognition. Cisco inaugurated to adopt this accounting superintendence early on a impending basement for exchange imagining or materially mutated in the initial entertain of mercantile 2010. Net sales for the initial entertain of mercantile 2010 were we estimate $50 million higher than the net sales that would have been accessible underneath the prior accounting guidance.

A settlement in between net income on a GAAP basement and non-GAAP net income is supposing in the list on page 6.

Cisco will plead initial entertain formula and commercial operation opinion on a discussion call and webcast at 1:30 p.m. Pacific Time today. Call report and associated charts have been accessible athttp://www.cisco.com/go/investors. A Q&A event with Cisco’s Chairman and CEO John Chambers and CFO Frank Calderoni will additionally be accessible at http://newsroom.cisco.com. To perspective a video of Cisco’s CFO deliberating initial entertain results, visit http://blogs.cisco.com.

Stock Repurchase Program Expanded

Cisco additionally voiced that on Nov 4, 2009 the house of directors certified up to $10 billion in one more repurchases of the usual stock. Cisco’s house had formerly certified up to $62 billion in batch repurchases. There is no bound stop date for the repurchase program. The superfluous certified volume for batch repurchases underneath this program, together with the one more authorization, is we estimate $13.1 billion.

Other Financial Highlights

Cash flows from operations were $1.5 billion for the initial entertain of mercantile 2010, compared with $2.7 billion for the initial entertain of mercantile 2009, and compared with $2.0 billion for the fourth entertain of mercantile 2009. Cash and money equivalents and investments were $35.4 billion at the finish of the initial entertain of mercantile 2010, compared with $35.0 billion at the finish of mercantile 2009. During the initial entertain of mercantile 2010, Cisco repurchased 76 million shares of usual batch underneath the batch repurchase module at an normal cost of $22.99 per share for an total squeeze cost of $1.8 billion. As of Oct 24, 2009, Cisco had repurchased and late 2.9 billion shares of Cisco usual batch at an normal cost of $20.47 per share for an total squeeze cost of we estimate $58.9 billion given the pregnancy of the batch repurchase program. Days sales superb in accounts receivable (DSO) at the finish of the initial entertain of mercantile 2010 were 32 days, compared with 34 days at the finish of the fourth entertain of mercantile 2009, and compared with twenty-nine days at the finish of the initial entertain of mercantile 2009. Inventory turns on a GAAP basement were 11.6 in the initial entertain of mercantile 2010, compared with 11.7 in the fourth entertain of mercantile 2009, and compared with 11.9 in the initial entertain of mercantile 2009. Non-GAAP register turns were 11.3 in the initial entertain of mercantile 2010, compared with 11.3 in the fourth entertain of mercantile 2009, and compared with 11.6 in the initial entertain of mercantile 2009.

“Cisco’s clever initial entertain formula paint dual buliding of sequentially certain income expansion and denote the capability to govern on the creation and operational value priorities,” pronounced Frank Calderoni, Cisco arch monetary officer. “We delivered gain per share on a GAAP basement of $0.30 and non-GAAP of $0.36, that were on top of the expectations, driven by change opposite a extended portfolio and heated concentration on execution. Our formula countenance the plan and portfolio proceed of balancing trained responsibility government with vital investment, to expostulate one after another profitability by varying mercantile environments.”

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