SOURCE: Cisco

09 févr. 2007 11h31 HE

Cisco Reports Second Quarter Earnings

Q2 Net Sales: $8.4 Billion

Q2 Net Income: $1.9 Billion GAAP; $2.1 Billion Non-GAAP

Q2 Earnings per Share: $0.31 GAAP (Increase of 41% Year Over Year); $0.33 Non-GAAP (Increase of 27% Year Over Year)

SAN JOSE, CA -- (MARKET WIRE) -- February 9, 2007 -- Cisco® (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its second quarter results for the period ended January 27, 2007. Cisco reported second quarter net sales of $8.4 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.31 per share, and non-GAAP net income of $2.1 billion or $0.33 per share. Scientific-Atlanta, Inc., acquired during the third quarter of fiscal 2006, contributed net sales of $639 million during the second quarter of fiscal 2007.

"Cisco achieved record results that were well balanced across our geographies, products, services, customer segments and new markets," said John Chambers, chairman and CEO, Cisco. "This illustrates our key competitive advantage of being able to develop a long-term vision, execute on our strategy and deliver consistent results.

"It is this unique ability to balance between strategy and innovation that has positioned Cisco to take advantage of key emerging business and IT trends such as the rise of video on the network," Chambers continued. "As the network becomes the platform, we are seeing more and more signs that all forms of IT and communication are moving into the network and increasing the total available market to Cisco."

GAAP Results
                         Q2 2007          Q2 2006       vs. Q2 2006
Net Sales             $8.4 billion     $6.6 billion       +27.3%
Net Income            $1.9 billion     $1.4 billion       +39.7%
Earnings per Share    $0.31            $0.22              +40.9%

Non-GAAP Results
                         Q2 2007          Q2 2006       vs. Q2 2006
Net Income            $2.1 billion     $1.6 billion       +28.1%
Earnings per Share    $0.33            $0.26              +26.9%
Net sales for the first six months of fiscal 2007 were $16.6 billion, compared with $13.2 billion for the first six months of fiscal 2006. Scientific-Atlanta, Inc. contributed $1.2 billion to net sales during the first six months of fiscal 2007. Net income for the first six months of fiscal 2007, on a GAAP basis, was $3.5 billion or $0.56 per share, compared with $2.6 billion or $0.42 per share for the first six months of fiscal 2006. Non-GAAP net income for the first six months of fiscal 2007 was $4.0 billion or $0.64 per share, compared with $3.2 billion or $0.51 per share for the first six months of fiscal 2006.

A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table on page 6, which includes additional information regarding the effect of the December 2006 reinstatement (retroactive to January 1, 2006) of the U.S. federal research and development (R&D) tax credit.

Cisco will discuss second quarter results and business outlook on a conference call and Webcast at 1:30 p.m. Pacific Time today. Call information and related charts are available at http://investor.cisco.com.

Financial Highlights

-- Cash flows from operations were $2.7 billion for the second quarter
   of fiscal 2007, compared with $1.9 billion for the second quarter
   of fiscal 2006, and compared with $2.3 billion for the first quarter
   of fiscal 2007.

-- Cash and cash equivalents and investments were $20.7 billion at the
   end of the second quarter of fiscal 2007, compared with $17.8 billion
   at the end of the fourth quarter of fiscal 2006, and compared with
   $19.5 billion at the end of the first quarter of fiscal 2007.

-- During the second quarter of fiscal 2007, Cisco repurchased 121 million
   shares of common stock at an average price of $27.01 per share for an
   aggregate purchase price of $3.3 billion. As of January 27, 2007, Cisco
   had repurchased and retired 2.1 billion shares of Cisco common stock at
   an average price of $19.00 per share for an aggregate purchase price of
   approximately $40.2 billion since the inception of the stock repurchase
   program.

-- Days sales outstanding in accounts receivable (DSO) at the end of the
   second quarter of fiscal 2007 were 31 days, compared with 38 days at
   the end of the fourth quarter of fiscal 2006, and compared with 34 days
   at the end of the first quarter of fiscal 2007.

-- Inventory turns on a GAAP basis were 7.8 in the second quarter of fiscal
   2007, compared with 8.5 in the fourth quarter of fiscal 2006, and
   compared with 8.3 in the first quarter of fiscal 2007.  Non-GAAP
   inventory turns were 7.6 in the second quarter of fiscal 2007, compared
   with 8.3 in the fourth quarter of fiscal 2006, and compared with 8.1 in
   the first quarter of fiscal 2007.
"We are very pleased with our overall performance and balance for the second quarter of the fiscal year," said Dennis Powell, chief financial officer, Cisco. "Cisco demonstrated continued strength of both our Cisco standalone business, with 18 percent revenue growth year over year, and our Scientific Atlanta business, with 21 percent growth year over year, which exceeded our expectations for combined revenue, operating income and earnings per share."

Business Highlights

Acquisitions

-- Cisco announced a definitive agreement to acquire IronPort Systems,
   Inc., a leading provider of messaging security appliances, focusing
   on enterprise spam and spyware protection.

-- Cisco completed the acquisitions of Tivella, Inc., Orative Corporation,
   and Greenfield Networks Inc.
New Product Introductions
-- Cisco introduced two models to its iPhone® family of voice-over-IP
   products that marry the familiarity of the telephone with compelling
   Internet services, access to personal content, and integration with
   the home, designed to create complete solutions for the communication
   needs of consumers.

-- Cisco introduced Cisco Digital Signage, a solution for management,
   publishing and playback of digital media on networked digital signage
   displays. Cisco also announced collaboration with NEC Display Solutions
   of America, Inc., a large-screen commercial LCD display supplier, to
   deliver a function-rich digital signage solution.

-- Cisco introduced the Cisco MDS 9124 Multilayer Fabric Switch, designed
   to provide enterprise-class capabilities such as virtual storage area
   networks, advanced security, high availability and flexibility, all
   powered by the Cisco SAN operating system.

Major Customer Actions

-- Turner Broadcasting System, Inc. chose Scientific Atlanta's MPEG-4 D9034
   Encoder to provide MPEG-4 signals for telecommunications companies.

-- Bank of America, working with its integration partner EDS, deployed
   Cisco's IP phones as part of an ongoing project that is fueling
   next-generation retail banking service innovations.

-- FASTWEB, Italy's second-largest fixed telecommunications services
   provider, chose Cisco IP NGN architecture to deliver significant
   enhancements to its national network.

-- Cisco and Sitronics JSC, a leading technology company in Russia and the
   Commonwealth of Independent States (CIS), announced a regional alliance
   to address the rapidly expanding telecommunications market in Russia,
   CIS and other emerging markets.

-- Shui On Land Limited, a leading property developer in Mainland China,
   is planning to work with Cisco to build world-class digital communities
   in China.

-- Singapore Telecommunications Limited is planning to deploy a Wi-Fi mesh
   network from Cisco in the North Region of Singapore.
Key Milestones
-- Cisco announced that it plans to present two Cisco TelePresence systems
   each to the governments of five nations in the Emerging Markets as a
   means to improve communications and collaboration.

-- Cisco achieved numerous product milestones throughout the second
   quarter, having now sold more than 2 million Cisco integrated services
   routers, shipping its 10-millionth IP phone and deploying its 500th
   Cisco CRS-1 Carrier Routing System.
Editor's Note:
-- Q2 FY07 conference call to discuss Cisco's results along with its
   business outlook to be held at 1:30 p.m. Pacific Time, Tuesday,
   February 6, 2007. Conference call number is 888-848-6507 (United States)
   or 212-519-0847 (international).

-- Conference call replay will be available from 4:30 p.m. Pacific Time,
   February 6, 2007 to 4:30 p.m. Pacific Time, February 13, 2007 at
   866-357-4205 (United States) or 203-369-0122 (international). The replay
   is also available from February 6, 2007 through April 20, 2007 on the
   Cisco Investor Relations Website at http://www.cisco.com/go/investors.

-- Additional information regarding Cisco's financials as well as a Webcast
   of the conference call with visuals designed to guide participants
   through the call will be available at 1:30 p.m. Pacific Time, February
   6, 2007. Text of the conference call's prepared remarks will be
   available within 24 hours of completion of the call. The Webcast will
   include both the prepared remarks and the question-and-answer session.
   This information, along with GAAP reconciliation information, will be
   available on the Cisco Investor Relations Website at
   http://www.cisco.com/go/investors.

-- A Q&A with Cisco's CEO and CFO about Q2 FY'07 results will be available
   at http://newsroom.cisco.com.
About Cisco

Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, visit http://newsroom.cisco.com.

Renseignements