Cisco Connects In 3rd Qtr

Cisco Reports Third Quarter Earnings
SAN JOSE, CA, May 06, 2008 (MARKET WIRE via COMTEX News Network)

Q3 Net Sales: $9.8 billion (increase of 10% year over year)
Q3 Net Income: $1.8 billion GAAP*; $2.3 billion non-GAAP
Q3 Earnings per Share: $0.29 GAAP* (decrease of 3% year over year); $0.38 non-GAAP (increase of 12% year over year)

Cisco(R) (NASDAQ: CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its third quarter results for the period ended April 26, 2008. Cisco reported third quarter net sales of $9.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.8 billion or $0.29 per share, and non-GAAP net income of $2.3 billion or $0.38 per share.
"In the quarter, Cisco delivered solid financial results driven by our focus on innovation, our broad and growing global footprint, and our teams' focus on delivering results," said John Chambers, chairman and CEO, Cisco. "We believe that our steady performance is based on Cisco's unique balance across business and technology architectures and our continued focus on execution against our long-term strategy."
Chambers continued, "Our optimism lies in our vision that the network is a strategic asset to optimize productivity and to enable collaboration in the second phase of the Internet, both of which are priorities for our success. The network is also a focal point for innovation, helping Cisco enter new and adjacent markets as well as strengthen or expand our positions in large, established markets."

Other Financial Highlights

Cash flows from operations were $3.0 billion for the third quarter of
fiscal 2008, compared with $2.4 billion for the third quarter of fiscal
2007, and compared with $2.4 billion for the second quarter of fiscal 2008.

Cash and cash equivalents and investments were $24.4 billion at the
end of the third quarter of fiscal 2008, compared with $22.3 billion at the
end of the fourth quarter of fiscal 2007, and compared with $22.7 billion
at the end of the second quarter of fiscal 2008.

During the third quarter of fiscal 2008, Cisco repurchased 83 million
shares of common stock at an average price of $24.04 per share for an
aggregate purchase price of $2.0 billion. As of April 26, 2008, Cisco had
repurchased and retired 2.5 billion shares of Cisco common stock at an
average price of $20.51 per share for an aggregate purchase price of
approximately $52.2 billion since the inception of the stock repurchase
program. The remaining authorized repurchase amount as of April 26, 2008
was $9.8 billion with no termination date.

Days sales outstanding in accounts receivable (DSO) at the end of the
third quarter of fiscal 2008 was 39 days, compared with 38 days at the end
of the fourth quarter of fiscal 2007, and compared with 39 days at the end
of the second quarter of fiscal 2008.

Inventory turns on a GAAP basis were 11.0 in the third quarter of
fiscal 2008, compared with 10.3 in the fourth quarter of fiscal 2007, and
compared with 10.8 in the second quarter of fiscal 2008. Non-GAAP inventory
turns were 10.7 in the third quarter of fiscal 2008, compared with 10.1 in
the fourth quarter of fiscal 2007, and compared with 10.5 in the second
quarter of fiscal 2008.