First Call menu.
SAN JOSE, Calif.--May 9, 2000--Cisco Systems, Inc., the worldwide
leader in networking for the Internet, today reported its third
quarter results for the period ending April 29, 2000.
Net sales for the third quarter of fiscal 2000 were $4.92 billion,
compared with $3.17 billion for the same period last year, an increase
of 55%. Pro forma net income, which excludes the effects of
acquisition charges, payroll tax on stock option exercises, and gains
realized on certain minority investments, was $1.03 billion or $0.14
per share, compared with pro forma net income of $649 million or $0.09
per share for the third quarter of fiscal 1999, increases of 58% and
56%, respectively.
During the third quarter of fiscal 2000, Cisco completed the
acquisitions of Aironet Wireless Communications and Pirelli Optical
Systems for a combined purchase price, including assumed liabilities,
of approximately $2.85 billion and took one-time charges of $488
million, or approximately $0.06 per share on an after-tax basis, as
write-offs of purchased in-process R&D. Additionally, Cisco completed
the acquisitions of Altiga Networks, Compatible Systems, and Growth
Networks Inc., which were accounted for as poolings of interests.
Actual net income for the third quarter of fiscal 2000 was $662
million or $0.09 per share, compared with $636 million or $0.09 per
share for the same period last year.
Net sales for the first nine months of fiscal 2000 were $13.18
billion, compared with $8.61 billion for the same period last year, an
increase of 53%. Pro forma net income was $2.75 billion or $0.37 per
share, compared with pro forma net income of $1.82 billion or $0.26
per share for the first nine months of fiscal 1999, increases of 51%
and 42%, respectively.
Actual net income for the first nine months of fiscal 2000 was
$1.91 billion or $0.26 per share, compared with $1.43 billion or $0.21
per share for the first nine months of fiscal 1999.
The net income per share and number of shares used in the
per-share calculation for all periods presented reflect the
two-for-one stock split that was effective March 22, 2000.
"Globally, business and government leaders are beginning to
dramatically transform their traditional business models into Internet
Economy business models," said John Chambers, president and CEO of
Cisco Systems. "These new Internet-based models reduce costs, generate
revenue in new ways, empower employees and citizens, and provide the
agility needed for the Internet Economy's rapid pace. Customers are
increasingly seeking Cisco's expertise to help them through this
transformation."
Cisco continues to advance its end-to-end Internet solutions for
each of its key markets.
In the service provider marketplace, Cisco continued to advance
its strategy for New World integrated data, voice, and video networks
and made progress in all key areas. Cisco's New World solutions
continued to gain acceptance from incumbent carriers worldwide,
underscoring the trend toward the Internet as the platform for all
future telecommunications. This trend began with Internet service
providers, then moved to global interexchange carriers, and today
local interexchange carriers are rapidly adopting Cisco's Internet
solutions for all data, voice, and video communications. SBC, one of
the nation's premier providers of data communications and network
integration, announced an alliance with Cisco to accelerate the
delivery of open, standards-based New World broadband services to
customers. Through this alliance, Cisco and SBC will go to market with
a complete portfolio of products and network services to deliver New |
