Cisco Systems rapporteerde gisteravond de resultaten over het tweede kwartaal van boekjaar 2003, afgesloten op 25 januari 2003. Het persbericht over de financiële resultaten en de toelichting hierop vindt u hieronder en via: http://newsroom.cisco.com/dlls/fin_020403.html.
De opname van de conference call over de tweede kwartaalcijfers is beschikbaar via telefoonnummer +1 402 220 0287, of ga naar http://www.cisco.com/go/investors.
Perscontact:
Karin van Geelen
Cisco Systems
tel: 020-357 3412
mailto:kgeelen@cisco.com
http://www.cisco.nl
Hella van Leeuwen
Edelman
tel.: 023-554 2030
mailto:hella.vanleeuwen@edelman.com
http://www.edelman.com/nl
Press Release
CISCO SYSTEMS REPORTS SECOND QUARTER EARNINGS
* Q2 Revenues: $4.7 Billion
* Q2 Operating Cash Flow: $1.36 Billion
* Q2 Earnings Per Share: $0.14 GAAP; $0.15 Pro Forma
SAN JOSE, Calif., February 4, 2003 - Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its second quarter results for the period ended January 25, 2003.
Net sales for the second quarter of fiscal 2003 were $4.7 billion, compared with $4.8 billion for the second quarter of fiscal 2002, a decrease of 2.1%, and compared with $4.8 billion for the first quarter of fiscal 2003.
Net income for the second quarter of fiscal 2003, on a generally accepted accounting principle (GAAP) basis, was $991 million or $0.14 per share, compared with $660 million or $0.09 per share for the second quarter of fiscal 2002, and $618 million or $0.08 per share for the first quarter of fiscal 2003. Pro forma net income for the second quarter of fiscal 2003 was $1.1 billion or $0.15 per share, compared with pro forma net income of $664 million or $0.09 per share for the second quarter of fiscal 2002, and compared with $1.0 billion or $0.14 per share for the first quarter of fiscal 2003. A reconciliation between net income on a GAAP basis and pro forma net income is provided in a table immediately following the Pro Forma Consolidated Statements of Operations.
Net sales for the first six months of fiscal 2003 were $9.6 billion, compared with $9.3 billion for the first six months of fiscal 2002, an increase of 3.2%.
Net income for the first six months of fiscal 2003, on a GAAP basis, was $1.6 billion or $0.22 per share, compared with $392 million or $0.05 per share for the first six months of fiscal 2002. Pro forma net income for the first six months of fiscal 2003 was $2.1 billion or $0.29 per share, compared with pro forma net income of $1.0 billion or $0.13 per share for the first six months of fiscal 2002.
"In what is probably the most challenging environment the information technology industry has ever faced, we are very pleased with our results in posting one of the best pro forma quarters in our history and the best GAAP quarter in terms of net income and earnings per share," said John Chambers, CEO of Cisco Systems. "Our market performance reflects Cisco's ability to deliver differentiated value to our customers' highest priority -- productivity."
Chambers continued, "From a global CEO and government leader perspective, we remain in a 'show- me' economy. What I've heard from these leaders is clear: As their business improves, their investment priorities will center on productivity. The Intelligent Information Network provides the enabling infrastructure to integrate the applications, business processes and technologies to drive these productivity gains."
Operational Highlights
* Cash flows from operations were $1.36 billion for the second quarter of fiscal 2003, compared with $2.0 billion for the second quarter of fiscal 2002, and compared with $1.07 billion for the first quarter of fiscal 2003.
* Cash and cash equivalents and total investments were $21.2 billion at the end of the second quarter of fiscal 2003, compared with $21.5 billion at the end of fiscal year 2002, and compared with $21.2 billion at the end of the first quarter of fiscal 2003.
* During the second quarter of fiscal 2003, Cisco repurchased approximately $1.5 billion of common stock. The total amount of stock repurchases for the first six months of fiscal 2003 was $2.6 billion.
* Days sales outstanding (DSO) in accounts receivable at the end of the second quarter of fiscal 2003 were 21 days, consistent with the fourth quarter of fiscal 2002 and the first quarter of fiscal 2003.
* Inventory turns were 7.0 turns in the second quarter of fiscal 2003, consistent with the fourth quarter of fiscal 2002 and the first quarter of fiscal 2003.
Business Highlights
* Cisco and SBC Communications Inc. forged a strategic marketing and sales agreement focused on accelerating the delivery of a new class of managed business services. SBC also plans to use Cisco IP networking technology in its core network infrastructure to deliver emerging services.
* Cisco and Lucent announced that Lucent will integrate and resell select Cisco packet data and media gateway products as part of Lucent's product offering for the mobile service provider market. The non-exclusive agreement will allow Cisco mobile wireless networking products to reach a broader segment of the service provider market.
* Cisco completed the acquisition of Psionic Software, Inc. and announced its intent to acquire Okena, Inc., both in the network security market segment.
* Lufthansa Airlines began trials of on-board high-speed Internet services for passengers, based on Cisco Aironet® 350 access points, a Cisco 3640 router, and Cisco Catalyst® 3548 XL switches.
* Cisco announced it will provide networking technology for China Unicom's core network backbone and a major Code Division Multiple Access (CDMA) upgrade project for 15 Chinese cities and provinces.
* Cisco introduced several IP communications technologies and products, including new unified messaging and IP PBX applications, audio- and videoconferencing capabilities, and a lower-cost Internet Protocol (IP) telephone. Adoption of Cisco IP communications solutions continued to expand with new customers including Burger King Corporation, Crate and Barrel, NFL Films, and Roche. In addition, service providers FastWeb, Bredbandsbolaget, SingTel, ITXC, Equant and Sprint plan to deliver IP-based voice, data, and video services to their business and residential customers based on Cisco technology.
* Cisco entered into a reseller agreement with IBM, and HP announced its intent to enter into a reseller agreement, to distribute the Cisco MDS 9000 Series storage switches.
* Germany's Deutsches Forschungsnetz (DFN), and SuperSINET, Japan's high-speed Research Network, began upgrading their high-capacity, sophisticated IP network to include Cisco 12000 Series routers.
* Cisco introduced the Cisco Catalyst 2950 Long-Reach Ethernet (LRE) Switch, offering small and medium- size enterprises and multi-tenant building customers enhanced network-wide intelligent Layer 3 and 4 services.
* Zhejiang Telecom, a subsidiary of China Telecom, plans to deploy Cisco Metro Ethernet Switching products in the Zhejiang province in eastern China to further expand the Zhejiang Telecom's province-wide backbone network. In addition, 51 Degrees deployed the United Kingdom's first Ethernet-based broadband connectivity service to live operational customers using the Cisco Metro Ethernet Switching solution based on Ethernet over MPLS.
Editors Note:
* Q2 FY03 conference call to be held at 1:30 p.m. PT on Tuesday, February 4, 2003. Conference call number is 800-369-1988 (United States); 312-470-7224 (international).
* Conference call replay available from 4:30 p.m. PT on February 4, 2003 to February 11, 2003 at 800-685-9460 (United States); 402-220-0287 (international).
* Additional information regarding Cisco's financials and corresponding Webcast with visuals designed to guide participants through the call are also available at 1:30 p.m. PT. Prepared remarks will be available after completion of the call. The prepared remarks should be viewed solely in conjunction with the related conference call Webcast. The Webcast will include both the prepared remarks, as well as the question-and-answer session. Please visit our Website at http://www.cisco.com under "About Cisco" in the Investor Relations section.
* Additional information regarding Cisco's Q2 FY03 will be available at http://newsroom.cisco.com, including:
* Customer Highlights & Technology Innovation Fact Sheet
* Summary Q&A with Cisco CEO and CFO
* Earnings call audio highlights
About Cisco Systems
Cisco Systems, Inc., (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com.
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This release contains projections and other forward-looking statements regarding future events and the future financial performance of Cisco that involve risks and uncertainties. Readers are cautioned that these forward-looking 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, 10-Q and 8-K, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. In addition to these risk factors, other factors that could cause actual results to differ materially include the following: business and economic conditions and growth trends in the networking industry in various geographic regions; global economic conditions; uncertainties in the geopolitical environment; overall information technology spending; the growth of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market; the ability to successfully restructure existing businesses; the timing of orders and manufacturing lead times; changes in customer order patterns; insufficient, excess or obsolete inventory; variations in sales channels, product costs, or mix of products sold; the ability to successfully reduce overhead and manage expenses; the ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; increased competition in the networking industry; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; the trend towards sales of integrated network solutions; manufacturing and sourcing risks; Internet infrastructure problems and government regulation of the Internet; international operations; the timing and amount of employer payroll tax to be paid on employees' gains on stock options exercised; litigation involving patents, intellectual property, antitrust, stockholder and other matters; possible disruption in commercial activities occasioned by terrorist activity and armed conflict, such as changes in logistics and security arrangements, and reduced end-user purchases relative to expectations; exposure to credit risks relating to certain customers and credit exposures in weakened markets; the ability to recruit and retain key personnel; stock price volatility; financial risk management; and potential volatility in operating results, among others. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Form 10-K and Form 10-Q, each as it may be amended from time to time. Cisco's results of operations for the three and six months ended January 25, 2003 are not necessarily indicative of Cisco's operating results for the full fiscal year or any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco is only to provide guidance at certain points during the year. Actual events or results could differ materially and no reader of this release should assume later that the information provided today is still valid. Such information speaks only as of the date of this release.
Cisco provides pro forma net income and pro forma net income per share data as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies.
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