( BW)(CA-CISCO-SYSTEMS)(CSCO) Cisco Systems Reports First Quarter Earnings
Business Editors
SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 6, 2000--Cisco Systems, Inc., the worldwide leader in networking for the Internet,
today reported its first quarter results for the period ending October 28, 2000.
Net sales for the first quarter of fiscal 2001 were $6.52 billion, compared with $3.92 billion for the same period last year, an increase of
66%. Pro forma net income, which excludes the effects of acquisition charges, payroll tax on stock option exercises, and net gains
realized on minority investments, was $1.36 billion or $0.18 per share for the first quarter of fiscal 2001, compared with pro forma net
income of $814 million or $0.11 per share for the first quarter of fiscal 2000, increases of 67% and 64%, respectively.
During the first quarter of fiscal 2001, Cisco completed the acquisitions of HyNEX Ltd., IPmobile, Inc., Komodo Technology, Inc.,
Netiverse, Inc., and NuSpeed, Inc. for a combined purchase price, including assumed liabilities, of approximately $1.37 billion and took a
one-time charge of $509 million, or approximately $0.07 per share on an after-tax basis, as a write-off of in-process R&D.
Actual net income for the first quarter of fiscal 2001 was $798 million or $0.11 per share, compared with $415 million or $0.06 per
share for the same period last year.
"Five years ago the Internet was a phenomenon that was primarily understood by "techies." Today, the combination of Internet
infrastructure and applications has created a new phenomenon -- the `Network Effect'-- and it is fueling new productivity, competition,
and growth," said John Chambers, president and CEO of Cisco Systems. "Business and government leaders alike increasingly understand
the one-to-one correlation between the effective use of the Internet and future prosperity. The Internet has taken center stage as a key
tool in opening up new economic opportunity and transforming businesses and societies on a global basis."
Cisco continues to advance its end-to-end Internet solutions for each of its key markets.
In the service provider marketplace, Cisco advanced its leadership and expertise in IP services and end-to-end solutions, accelerating
service provider adoption of IP-based solutions that will drive new revenue opportunities. The company gained momentum for its
next-generation optical solutions. Demonstrating growing acceptance of the Cisco IP+optical networking strategy with carriers
worldwide, BellSouth selected Cisco as a primary vendor to build out the first IP+optical exchange, and Cambrian announced the first
Cisco end-to-end IP+optical network. Underscoring its commitment to Internet-scale, carrier-class optical networks, Cisco opened the
New England Manufacturing Center in Salem, New Hampshire, to serve as a hub for all optical manufacturing. Cisco continued to
expand its portfolio of broadband solutions, announcing the acquisitions of Vovida, IPCell, and PixStream to enable service providers to
accelerate deployment of new data, voice, and video services. The company secured a contract with Telstra Corporation to migrate the
carrier's high-speed cable modem services to the Data over Cable Service Interface Specification (DOCSIS) industry standard.
In the enterprise market, Cisco continued to expand the reach of its end-to-end IP telephony solutions and advanced its New World
services. The company announced the Cisco e-services application engine that advances on the Cisco AVVID (Architecture for Voice,
Video, and Integrated Data) by enhancing the scalability and flexibility for enterprise voice solutions. The IP-based communications
solutions enhance employee productivity, lower cost of ownership, and provide better customer care. Benefiting service providers and
enterprises alike, the company announced the Cisco Content Delivery Network (CDN) system enabling service providers to deploy
innovative content- delivery services for new profit opportunities and enterprises to accelerate deployment of advanced e-business
applications. In addition, a new security strategy, Cisco SAFE for the Cisco AVVID architecture will enable organizations reliably and
cost-effectively engage in e-business.
In the small and medium-sized market, Cisco continued its commitment to helping small and medium-sized businesses achieve their full
potential through use of the Internet. Completing its business digital subscriber line (DSL) customer premises equipment (CPE) portfolio,
the company introduced the Cisco SOHO 77 ADSL Router, providing small office/home office users with affordable, multiuser, secure
Internet access over a single DSL line and ADSL WAN interface card extending business DSL from the small and medium-sized
business to the enterprise branch office. Cisco also announced the acquisition of CAIS Software Solutions furthering Cisco's strategy of
offering complete broadband connectivity solutions for service providers addressing the multiunit building market. Cisco partnered with the
city of San Jose, The Small Business Administration, and other sponsors to create a one-stop resource center in Silicon Valley for small
business owners.
"We are very pleased with the solid balance across our major geographies, lines of business, and product families. And, while we're
proud of our accomplishments over the last decade, we are even more optimistic about the opportunities for Cisco in the next decade. I
want to thank our shareholders, employees, partners, and suppliers for their continued commitment and confidence in our ability to
execute. Together, we are only beginning to explore all that's possible on the Internet," concluded Chambers.
Cisco will be discussing its first quarter results, along with its outlook for the second quarter and the remainder of fiscal year 2001, on a
conference call today, beginning at 1:45 PM PST. A Webcast of the conference call will be available to all interested parties on Cisco's
Website at www.cisco.com under the "Investor Relations" section. |
