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 27, 2007.
Cisco reported first quarter net sales of $9.6 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.35 per share, and non-GAAP net income of $2.5 billion or $0.40 per share. A tax benefit of $162 million or approximately $0.03 per share relating to a settlement of certain U.S. income tax matters was included in both the GAAP and non-GAAP results for the first quarter of fiscal 2008.
"Cisco delivered another record quarter based on balanced execution across the company," said John Chambers, chairman and CEO, Cisco. "We believe these strong results show that Cisco is well-positioned in terms of our vision, differentiated strategy and execution, and our ability to act upon key market transitions.
"We believe the migration to the second phase of the Internet and the proliferation of networked Web 2.0 technologies will help drive dramatic gains in productivity and innovation across all industries. If this market transition continues to unfold as we expect, it has the potential to power Cisco's and the industry's growth for many years to come."
Other Financial Highlights
Cash flows from operations were $3.1 billion for the first quarter of fiscal 2008, compared with $2.3 billion for the first quarter of fiscal 2007, and compared with $2.7 billion for the fourth quarter of fiscal 2007.
Cash and cash equivalents, and investments were $24.7 billion at the end of the first quarter of fiscal 2008, compared with $22.3 billion at the end of the fourth quarter of fiscal 2007.
During the first quarter of fiscal 2008, Cisco repurchased 96 million shares of common stock at an average price of $31.28 per share for an aggregate purchase price of $3.0 billion. As of October 27, 2007, Cisco had repurchased and retired 2.3 billion shares of Cisco common stock at an average price of $19.89 per share for an aggregate purchase price of approximately $46.2 billion since the inception of the stock repurchase program. The remaining authorized repurchase amount as of October 27, 2007 was $5.8 billion with no termination date.
Days sales outstanding in accounts receivable (DSO) at the end of the first quarter of fiscal 2008 were 33 days, compared with 38 days at the end of the fourth quarter of fiscal 2007.
Inventory turns on a GAAP basis were 10.3 in the first quarter of fiscal 2008, compared with 10.3 in the fourth quarter of fiscal 2007. Non-GAAP inventory turns were 10.0 in the first quarter of fiscal 2008, compared with 10.1 in the fourth quarter of fiscal 2007.
"We are very pleased with Cisco's financial results, delivering another quarter of record revenue, net income and earnings per share, as well as our highest cash flow from operations to date of $3.1 billion," said Dennis Powell, chief financial officer, Cisco. "This consistency in both top and bottom-line performance can be attributed to our balanced revenue growth across geographies, products, services and customer segments, while maintaining our traditionally strong gross margins."
Business Highlights
Acquisitions
Cisco announced a definitive agreement to purchase Navini Networks, Inc., a leader in the Mobile WiMAX 802.16e-2005 broadband wireless industry. Cisco expects that its broadband wireless solution portfolio, including WiMAX products, will play a key role in Cisco's "Digital Inclusion" initiative to drive broadband penetration to consumers and businesses in emerging markets.
Cisco announced and closed the acquisitions of Cognio, Inc. and Latigent, LLC. Cognio is the market leader in wireless spectrum analysis and management for wireless networks. Latigent is a leading provider of Web-based business intelligence and analytics reporting solutions, focused on contact centers.
New Products
Cisco introduced the industry's only integrated 802.11n solution designed to combine superior wireless performance and reliability with simplicity of deployment.
Cisco introduced enhancements to the Carrier Ethernet portfolio in its IP Next-Generation Network (IP NGN) architecture portfolio, extending fiber-to-the-home to apartment buildings and other multi-tenant units and allowing deployment of more services more quickly.
Cisco introduced new offerings for its Network Admission Control (NAC) including the Cisco NAC Network Module for Integrated Services Routers, a modular security solution that is completely integrated into the network infrastructure, and the Cisco NAC Profiler, an endpoint-recognition technology that maintains a detailed inventory of networked devices so they can be evaluated before and during their connection to corporate networks.
Cisco announced the integration of Cisco VFrame Data Center with VMware Virtual Infrastructure, a key solution for the Cisco vision of next-generation data centers, called Data Center 3.0. The integration with VMware Infrastructure 3 offers customers enhanced IT automation capabilities, including added VMware ESX Server capacity on demand, as well as orchestrated configuration of network services.
Cisco introduced the Industry Solutions Partner Network, which is designed to engage, enable and reward a global community of channel partners, application providers and device manufacturers to collaborate and deliver industry-specific solutions that address the business needs of customers.
Cisco announced that WebEx will offer Oracle's Siebel CRM On Demand Service, a customer relationship management (CRM) application service, through the WebEx Connect application ecosystem.
Linksys introduced eight new "smart switches" for small environments, corporate workgroups or network edge applications that require simple Web management, network security and easy installation.
Major Customer Announcements
Cisco Unified Contact Center has been certified by AT&T Labs for compatibility and interoperability with AT&T's recently announced IP Toll-Free service.
Bell Canada became the first Canadian service provider to achieve the Cisco Powered TelePresence network status, enabling the delivery of the Cisco TelePresence solution.
Hanaro Telecom, Korea's major broadband service provider, selected Cisco's standards-based channel-bonding technology for the world's largest deployment of 100-megabits-per-second broadband services, now reaching more than 200,000 customers.
Free (Iliad Group), the leading triple-play-over-broadband operator in Europe, doubled the capacity of its Cisco-based IP NGN in a drive to enhance the quality of experience for its more than 2.5 million subscribers. The operation was completed without any interruption to subscriber services.
Belgium-based Accent Jobs For People, an employment and recruiting agency, became Cisco's 200th Digital Media System customer. The company is using Cisco Digital Signage to communicate in realtime in a dynamic and user-friendly way with employees, job candidates and clients across 70 of its offices.
Erste Bank Serbia implemented Cisco's Financial Services Intelligent Network Solution and deployed a new unified voice, data and video network, including 850 IP phones, that is designed to help accelerate the bank's growth by connecting all of its 62 branch offices in Serbia.
Key Milestones
The Cisco Express Network on Wheels (NoW), a mobile showcase of Cisco's IP networking technologies, started a year-long journey in Singapore and will travel to 30 cities in Asia. The Cisco Express-NoW is designed to extend Cisco's reach to organizations in vertical industries such as healthcare, public sector, manufacturing, tourism, retail and construction, small and medium-sized businesses, resellers, schools and even consumers.-Cisco
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
