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Cisco Reports Q1

SAN JOSE, Calif. — Cisco, the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its first quarter results for the period ended October 30, 2010. Cisco reported first quarter net sales of $10.75 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.34 per share, and non-GAAP net income of $2.4 billion or $0.42 per share.

“Cisco delivered solid financial results, during a challenging economic environment. While we have seen capital spending moderate in some areas of our business, our execution in the areas we can control and influence speak to the success and relevance of the company's strategy,” said John Chambers, chairman and CEO, Cisco. “Our position in the market, including continued product innovation, market share momentum and operational excellence, positions us for growth and flexibility well into the future as we strengthen our role as a trusted business partner to our customers.”

Other Financial Highlights

• Cash flows from operations were $1.7 billion for the first quarter of fiscal 2011, compared with $1.5 billion for the first quarter of fiscal 2010, and compared with $3.2 billion for the fourth quarter of fiscal 2010.

• Cash and cash equivalents and investments were $38.9 billion at the end of the first quarter of fiscal 2011, compared with $39.9 billion at the end of fiscal 2010.

• During the first quarter of fiscal 2011, Cisco repurchased 113 million shares of common stock under the stock repurchase program at an average price of $22.14 per share for an aggregate purchase price of $2.5 billion. As of October 30, 2010, Cisco had repurchased and retired 3.2 billion shares of Cisco common stock at an average price of $20.83 per share for an aggregate purchase price of approximately $67.5 billion since the inception of the stock repurchase program. The remaining authorized repurchase amount as of October 30, 2010 was $4.5 billion with no termination date.

• Days sales outstanding in accounts receivable (DSO) at the end of the first quarter of fiscal 2011 were 38 days, compared with 41 days at the end of the fourth quarter of fiscal 2010, and compared with 32 days at the end of the first quarter of fiscal 2010.

• Inventory turns on a GAAP basis were 11.2 in the first quarter of fiscal 2011, compared with 12.6 in the fourth quarter of fiscal 2010, and compared with 11.6 in the first quarter of fiscal 2010. Non-GAAP inventory turns were 10.8 in the first quarter of fiscal 2011, compared with 12.1 in the fourth quarter of fiscal 2010, and compared with 11.3 in the first quarter of fiscal 2010.

“Our balanced results in the first quarter clearly demonstrate our ability to execute across many areas within the company,” stated Frank Calderoni, executive vice president and chief financial officer, Cisco. “We delivered $10.75 billion in revenue, representing 19% year-over-year growth alongside continued investments in expanding our portfolio. We believe we have competitive advantages that provide us with the platform on which to base long-term profitable growth, and we are moving the business forward to deliver results for our customers, our shareholders, and our employees.”

{complink 1131|Cisco Systems Inc.}

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