Cisco Systems 4th Qtr 2008 Earnings Beats The Street

Cisco Systems Reports Q4 and Fiscal Year 2008 Earnings

>Q4 Net Sales: $10.4 billion (increase of 10% year over year)
>Q4 Net Income: $2.0 billion GAAP; $2.4 billion non-GAAP
>Q4 Earnings per Share: $0.33 GAAP (increase of 6% year over year); $0.40 non-GAAP (increase of 11% year over year)
>FY 2008 Net Sales: $39.5 billion (increase of 13% year over year)
>FY 2008 Net Income: $8.1 billion GAAP; $9.6 billion non-GAAP
>FY 2008 Earnings per Share: $1.31 GAAP (increase of 12% year over year); $1.56 non-GAAP (increase of 16% year over year)

Other Financial Highlights
>Cash flows from operations were $3.5 billion for the fourth quarter of fiscal 2008, compared with $2.7 billion for the fourth quarter of fiscal 2007, and compared with $3.0 billion for the third quarter of fiscal 2008. Cash flows from operations were $12.1 billion for fiscal 2008, compared with $10.1 billion for fiscal 2007.

>Cash and cash equivalents and investments were $26.2 billion at the end of fiscal 2008, compared with $22.3 billion at the end of fiscal 2007, and compared with $24.4 billion at the end of the third quarter of fiscal 2008.

>During the fourth quarter of fiscal 2008, Cisco repurchased 54 million shares of common stock at an average price of $25.11 per share for an aggregate purchase price of $1.35 billion. During fiscal 2008, Cisco repurchased 372 million shares of common stock at an average price of $27.80 per share for an aggregate purchase price of $10.4 billion. As of July 26, 2008, Cisco had repurchased and retired 2.6 billion shares of Cisco common stock at an average price of $20.60 per share for an aggregate purchase price of approximately $53.6 billion since the inception of the stock repurchase program. The remaining authorized repurchase amount as of July 26, 2008 was $8.4 billion with no termination date.

>Days sales outstanding in accounts receivable (DSO) at the end of the fourth quarter of fiscal 2008 were 34 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 third quarter of fiscal 2008.

>Inventory turns on a GAAP basis were 11.8 in the fourth quarter of fiscal 2008, compared with 10.3 in the fourth quarter of fiscal 2007, and compared with 11.0 in the third quarter of fiscal 2008. Non-GAAP inventory turns were 11.5 in the fourth quarter of fiscal 2008, compared with 10.1 in the fourth quarter of fiscal 2007, and compared with 10.7 in the third quarter of fiscal 2008.