Income Statements
HISTORICAL FINANCIALS
INCOME STATEMENTS
(in millions, except per-share amounts)
Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2)
GAAP NON-GAAP GAAP NON-GAAP GAAP NON-GAAP GAAP NON-GAAP
FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 FY 2024
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended Nine Months Ended Nine Months Ended
October 28, 2023 October 28, 2023 January 27, 2024 January 27, 2024 April 27, 2024 April 27, 2024 April 27, 2024 April 27, 2024
REVENUE:
Product $ 11,139 $ 11,139 $ 9,232 $ 9,232 $ 9,024 $ 9,024 $ 29,395 $ 29,395
Service 3,529 3,529 3,559 3,559 3,678 3,678 10,766 10,766
Total revenue 14,668 14,668 12,791 12,791 12,702 12,702 40,161 40,161
COST OF SALES:
Product (a) - (c) 3,957 3,734 3,443 3,209 3,295 2,985 10,695 9,928
Service (a) & (c) 1,154 1,093 1,131 1,050 1,134 1,044 3,419 3,187
Total cost of sales (a) - (c) 5,111 4,827 4,574 4,259 4,429 4,029 14,114 13,115
GROSS MARGIN (a) - (c) 9,557 9,841 8,217 8,532 8,273 8,673 26,047 27,046
Product gross margin percentage 64.5% 66.5% 62.7% 65.2% 63.5% 66.9% 63.6% 66.2%
Service gross margin percentage 67.3% 69.0% 68.2% 70.5% 69.2% 71.6% 68.2% 70.4%
Total gross margin percentage 65.2% 67.1% 64.2% 66.7% 65.1% 68.3% 64.9% 67.3%
OPERATING EXPENSES:
Research and development (a) & (c) 1,913 1,593 1,943 1,556 1,948 1,505 5,804 4,654
Sales and marketing (a), & (c) 2,506 2,319 2,458 2,236 2,559 2,300 7,523 6,855
General and administrative (a), (c) & (d) 672 556 642 525 736 519 2,050 1,600
Amortization of purchased intangible assets (b) 67 - 66 - 297 - 430 -
Restructuring and other charges (e) 123 - 12 - 542 - 677 -
Total operating expenses (a) - (e) 5,281 4,468 5,121 4,317 6,082 4,324 16,484 13,109
Operating expense as a percentage of revenue 36.0% 30.5% 40.0% 33.8% 47.9% 34.0% 41.0% 32.6%
OPERATING INCOME (a) - (e) 4,276 5,373 3,096 4,215 2,191 4,349 9,563 13,937
Operating income as a percentage of revenue 29.2% 36.6% 24.2% 33.0% 17.2% 34.2% 23.8% 34.7%
Interest income 360 360 324 324 411 411 1,095 1,095
Interest expense (111) (111) (120) (120) (357) (357) (588) (588)
Other income (loss), net (f) (83) (32) (139) (51) (10) (17) (232) (100)
Interest and other income (loss), net 166 217 65 153 44 37 275 407
INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (f) 4,442 5,590 3,161 4,368 2,235 4,386 9,838 14,344
Provision for income taxes (g) - (h) 804 1,062 527 830 349 833 1,680 2,725
NET INCOME (a) - (h) $ 3,638 $ 4,528 $ 2,634 $ 3,538 $ 1,886 $ 3,553 $ 8,158 $ 11,619
Net income per share:
Basic (a) - (h) $ 0.90 $ 0.65 $ 0.47 $ 2.01
Diluted (a) - (h) $ 0.89 $ 1.11 $ 0.65 $ 0.87 $ 0.46 $ 0.88 $ 2.00 $ 2.85
Shares used in per-share calculation:
Basic 4,057 4,055 4,042 4,051
Diluted 4,087 4,087 4,073 4,073 4,060 4,060 4,071 4,071
Cash dividends declared per common share $ 0.39 $ 0.39 $ 0.40 $ 1.18
Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.

&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.

GAAP Recon Note 1
INCOME STATEMENTS
Note 1
(in millions)
FY 2024 FY 2024 FY 2024 FY 2024
Quarter Ended Quarter Ended Quarter Ended Nine Months Ended
October 28, 2023 January 27, 2024 April 27, 2024 April 27, 2024
A reconciliation between net income on a GAAP basis and non-GAAP net income including items (a) to (h) is as follows:
GAAP net income $ 3,638 $ 2,634 $ 1,886 $ 8,158
(a) Share-based compensation expense 653 801 804 2,258
(b) Amortization of acquisition-related intangible assets 248 241 546 1,035
(c) Other acquisition-related/divestiture costs 75 65 276 416
(d) Russia-Ukraine war costs (2) - 0 (10) (12)
(e) Significant asset impairments and restructurings 123 12 542 677
(f) Gains and losses on equity investments 51 88 (7) 132
Total adjustments to GAAP income before provision for income taxes 1,148 1,207 2,151 4,506
(g) Income tax effect (258) (303) (484) (1,045)
(h) Significant tax matters - 0 - 0 - 0 - 0
Total adjustments to GAAP provision for income taxes (258) (303) (484) (1,045)
Non-GAAP net income $ 4,528 $ 3,538 $ 3,553 $ 11,619

&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.

GAAP Recon Note 2
INCOME STATEMENTS
Note 2
(in millions)
COGS Operating Expense OI&E
Research and Development Sales and Marketing General and Administrative Amortization of Purchased Intangible Assets Restructuring and Other Charges Other Income (Expense) Total
Product Service
Items (a) to (f) in note 1 are allocated as follows:
Items Q1'24
(a) Share-based compensation expense $ 42 $ 61 $ 274 $ 186 $ 90 $ - $ - $ - $ 653
(b) Amortization of acquisition-related intangible assets 181 - - - - 67 - - 248
(c) Other acquisition-related/divestiture costs - - 46 1 28 - - - 75
(d) Russia-Ukraine war costs - - - - (2) - - - (2)
(e) Significant asset impairments and restructurings - - - - - - 123 - 123
(f) Gains and losses on equity investments - - - - - - - 51 51
Total $ 223 $ 61 $ 320 $ 187 $ 116 $ 67 $ 123 $ 51 $ 1,148
Items Q2'24
(a) Share-based compensation expense $ 58 $ 81 $ 344 $ 221 $ 97 $ - $ - $ - $ 801
(b) Amortization of acquisition-related intangible assets 175 - - - - 66 - - 241
(c) Other acquisition-related/divestiture costs 1 - 43 1 20 - - - 65
(d) Russia-Ukraine war costs - - - - - - - - -
(e) Significant asset impairments and restructurings - - - - - - 12 - 12
(f) Gains and losses on equity investments - - - - - - - 88 88
Total $ 234 $ 81 $ 387 $ 222 $ 117 $ 66 $ 12 $ 88 $ 1,207
Items Q3'24
(a) Share-based compensation expense $ 57 $ 82 $ 349 $ 221 $ 95 $ - $ - $ - $ 804
(b) Amortization of acquisition-related intangible assets 249 - - - - 297 - - 546
(c) Other acquisition-related/divestiture costs 4 8 94 38 132 - - - 276
(d) Russia-Ukraine war costs - - - - (10) - - - (10)
(e) Significant asset impairments and restructurings - - - - - - 542 - 542
(f) Gains and losses on equity investments - - - - - - - (7) (7)
Total $ 310 $ 90 $ 443 $ 259 $ 217 $ 297 $ 542 $ (7) $ 2,151
Items Q3'24 YTD
(a) Share-based compensation expense $ 157 $ 224 $ 967 $ 628 $ 282 $ - $ - $ - $ 2,258
(b) Amortization of acquisition-related intangible assets 605 - - - - 430 - - 1,035
(c) Other acquisition-related/divestiture costs 5 8 183 40 180 - - - 416
(d) Russia-Ukraine war costs - - - - (12) - - - (12)
(e) Significant asset impairments and restructurings - - - - - - 677 - 677
(f) Gains and losses on equity investments - - - - - - - 132 132
Total $ 767 $ 232 $ 1,150 $ 668 $ 450 $ 430 $ 677 $ 132 $ 4,506

&9Income Statements and GAAP Reconciliation &9Cisco Systems, Inc.

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Cisco Systems Inc. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 21:53:44 UTC.