Q4 Net Sales: $11.2 billion
Q4 Net Income: $1.2 billion GAAP; $2.2 billion non-GAAP
Q4 Earnings per Share: $0.22 GAAP; $0.40 non-GAAP
FY 2011 Net Sales: $43.2 billion
FY 2011 Net Income: $6.5 billion GAAP; $9.0 billion non-GAAP
FY 2011 Earnings per Share: $1.17 GAAP; $1.62 non-GAAP
Cisco (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its fourth quarter and fiscal year results for the period ended July 30, 2011. Cisco reported fourth quarter net sales of $11.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.2 billion or $0.22 per share, and non-GAAP net income of $2.2 billion or $0.40 per share.

"We've made significant progress on our comprehensive action plan to position ourselves for our next stage of growth and profitability, while delivering solid financial results in Q4," said John Chambers, chairman and CEO, Cisco. "As we start our next fiscal year, you will see a very focused, agile, lean and aggressive company, that is laser focused on helping our customers use intelligent networks to transform their businesses."

Q4 GAAP Results


Q4 2011 Q4 2010 Vs. Q4 2010
Net Sales $ 11.2 billion $ 10.8 billion 3.3 %
Net Income $ 1.2 billion $ 1.9 billion (36.3 ) %
Earnings per Share $ 0.22 $ 0.33 (33.3 ) %


Q4 Non-GAAP Results


Q4 2011 Q4 2010 Vs. Q4 2010
Net Income $ 2.2 billion $ 2.5 billion (12.4 ) %
Earnings per Share $ 0.40 $ 0.43 (7.0 ) %


Fiscal Year GAAP Results


FY 2011 FY 2010 Vs. FY 2010
Net Sales $ 43.2 billion $ 40.0 billion 7.9 %
Net Income $ 6.5 billion $ 7.8 billion (16.4 ) %
Earnings per Share $ 1.17 $ 1.33 (12.0 ) %


Fiscal Year Non-GAAP Results


FY 2011 FY 2010 Vs. FY 2010
Net Income $ 9.0 billion $ 9.4 billion (4.3 ) %
Earnings per Share $ 1.62 $ 1.61 0.6 %

GAAP net income for the fourth quarter and fiscal year 2011 included pretax charges of $772 million and $923 million, respectively, related to restructuring and other charges. A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table on page 7.

Cisco will discuss fourth quarter and fiscal year 2011 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.

Other Financial Highlights

Cash flows from operations were $2.8 billion for the fourth quarter of fiscal 2011, compared with $3.0 billion for the third quarter of fiscal 2011, and compared with $3.2 billion for the fourth quarter of fiscal 2010. Cash flows from operations were $10.1 billion for fiscal 2011, compared with $10.2 billion for fiscal 2010.

Cash and cash equivalents and investments were $44.6 billion at the end of fiscal 2011, compared with $43.4 billion at the end of the third quarter of fiscal 2011, and compared with $39.9 billion at the end of fiscal 2010.

During the fourth quarter of fiscal 2011, Cisco repurchased 95 million shares of common stock under the stock repurchase program at an average price of $15.85 per share for an aggregate purchase price of $1.5 billion. During fiscal 2011, Cisco repurchased 351 million shares of common stock at an average price of $19.36 per share for an aggregate purchase price of $6.8 billion. As of July 30, 2011, Cisco had repurchased and retired 3.5 billion shares of Cisco common stock at an average price of $20.64 per share for an aggregate purchase price of approximately $71.8 billion since the inception of the stock repurchase program. The remaining authorized amount for stock repurchases under this program as of July 30, 2011 was approximately $10.2 billion with no termination date.

Days sales outstanding in accounts receivable (DSO) at the end of the fourth quarter of fiscal 2011 were 38 days, compared with 37 days at the end of the third quarter of fiscal 2011, and compared with 41 days at the end of the fourth quarter of fiscal 2010.

Inventory turns on a GAAP basis were 11.8 in the fourth quarter of fiscal 2011, compared with 11.1 in the third quarter of fiscal 2011, and compared with 12.6 in the fourth quarter of fiscal 2010. Non-GAAP inventory turns were 11.4 in the fourth quarter of fiscal 2011, compared with 10.3 in the third quarter of fiscal 2011, and compared with 12.1 in the fourth quarter of fiscal 2010.

Select Global Business Highlights

Xerox and Cisco announced that they intend to form an alliance to simplify IT management by delivering cloud-based services and technology solutions that combine network intelligence and print.
Cisco Innovation

Cisco introduced multiple innovations for its flagship Catalyst® 6500 Series Switches, providing customers with the capability to evolve their network infrastructure for the coming decade's proliferation of connected devices, growth of video traffic, cloud computing business models and increasingly mobile workforces.
Cisco introduced AppHQ™, an application ecosystem built specifically for Cisco Cius™ that provides new ways to create, manage and rapidly deploy tablet applications in the enterprise.
Cisco announced the industry's first 60-watt Power over Ethernet capability for one of the most widely deployed enterprise-class switches in the industry, the Catalyst 4500E Switch.
Cisco introduced new technology to increase the efficiency and security of cloud-based networks so that information can be delivered instantly, with industry-leading security to more people, on more devices, in more locations.
Cisco introduced a number of new telepresence products and enhancements designed to give customers new ways to simply, quickly and cost effectively scale telepresence throughout their organizations.
Cisco introduced new solutions to help sports and entertainment venues and service providers enhance wireless bandwidth and performance in high-density areas while monetizing the delivery of personalized mobile experiences.
Select Customer Announcements

NASDAQ OMX PHLX, the Philadelphia-based, high-performance options trading exchange, deployed Cisco Nexus® 5000 Series Switches and the Cisco Nexus 2000 Series Fabric Extender (FEX), which provides scalability and a simplified, single point of management capability.
Comcast, Tata Communications, and China Telecom selected the Cisco ASR 9000 Series Aggregation Services Routers to support the delivery of advanced services to their respective customers.
Travelport selected Cisco Unified Computing System™ and Cisco Nexus Switches to increase business efficiency and scalability.
Cisco and New Songdo International City Development in Korea joined forces to create what is anticipated to become one of the most technologically advanced Cisco Smart+Connected Communities™ in the world.
Cisco Cius and Nervecentre Software are helping Nottingham University Hospitals NHS Trust redirect 8,000 hours of annual nursing time into hands-on patient care.
Polish Telecom boosted its network with Cisco CRS-3 Carrier Routing System and Cisco ASR 9000 Series Aggregation Services Routers to help build out video, mobile and cloud computing services.
Law firm Minter Ellison selected Cisco technology to connect industry and government clients in Australia, Hong Kong, the People's Republic of China, New Zealand and the United Kingdom.
Russian mobile operator SkyLink completed the modernization of its Packet Data Serving Node (PDSN) and migrated data traffic to an intelligent platform based on the Cisco ASR 5000 Series Aggregation Services Router.
Argentinean bank Banco Supervielle adopted Cisco Borderless Network Architecture to accelerate processes, improve productivity and reduce operational costs.