Cisco 2004 Annual Report Download - page 66

COMPANY฀PROFILE
This฀Annual฀Report฀contains฀forward-looking฀statements฀regarding฀future฀events฀and฀our฀future฀results฀that฀are฀subject฀to฀the฀safe฀harbors฀created฀under฀the฀Securities฀Act฀of฀1933฀and฀the฀Securities฀
Exchange฀Act฀of฀1934.฀These฀statements฀are฀based฀on฀current฀expectations,฀estimates,฀forecasts,฀and฀projections฀about฀the฀industries฀in฀which฀we฀operate฀and฀the฀beliefs฀and฀assumptions฀of฀our฀
management.฀Words฀such฀as฀“expects,”฀“anticipates,”฀“targets,”฀“goals,”฀“projects,”฀“intends,”฀“plans,”฀“believes,”฀“seeks,”฀“estimates,”฀“continues,”฀“may,”฀variations฀of฀such฀words,฀and฀similar฀
expressions฀are฀intended฀to฀identify฀such฀forward-looking฀statements.฀In฀addition,฀statements฀that฀refer฀to฀projections฀of฀our฀future฀financial฀performance,฀our฀anticipated฀growth฀and฀trends฀in฀our฀
businesses฀or฀ key฀markets,฀ including฀growth฀ in฀the฀ service฀provider฀ market,฀and฀future฀ growth฀and฀ revenues฀from฀ Advanced฀Technologies,฀ improvements฀in฀ the฀capital฀spending฀environment,฀
benefits฀of฀taking฀business฀risks,฀future฀financial฀conditions,฀increases฀in฀productivity฀and฀standard฀of฀living,฀and฀other฀characterizations฀of฀future฀events฀or฀circumstances,฀are฀forward-looking฀state-
ments.฀Readers฀are฀cautioned฀that฀these฀forward-looking฀statements฀are฀only฀predictions,฀are฀subject฀to฀risks,฀uncertainties,฀and฀assumptions฀that฀are฀difficult฀to฀predict,฀and฀may฀differ฀materially฀
and฀adversely฀from฀actual฀future฀events฀or฀results฀due฀to฀a฀variety฀of฀factors,฀including:฀business฀and฀economic฀conditions฀and฀growth฀trends฀in฀the฀networking฀industry฀and฀in฀various฀geographic฀
regions;฀global฀economic฀conditions฀and฀uncertainties฀in฀the฀geopolitical฀environment;฀overall฀information฀technology฀spending;฀the฀growth฀of฀the฀Internet฀and฀levels฀of฀capital฀spending฀on฀Internet-
based฀systems;฀variations฀in฀customer฀demand฀for฀products฀and฀services,฀including฀sales฀to฀the฀service฀provider฀market;฀the฀timing฀of฀orders฀and฀manufacturing฀lead฀times;฀changes฀in฀customer฀order฀
patterns฀or฀customer฀mix;฀insufficient,฀excess฀or฀obsolete฀inventory;฀variability฀of฀component฀costs;฀variations฀in฀sales฀channels,฀product฀costs฀or฀mix฀of฀products฀sold;฀the฀ability฀to฀successfully฀
acquire฀businesses฀and฀technologies฀and฀to฀successfully฀integrate฀and฀operate฀these฀acquired฀businesses฀and฀technologies;฀increased฀competition฀in฀the฀networking฀industry;฀dependence฀on฀the฀฀
introduction฀and฀market฀acceptance฀of฀new฀product฀offerings฀and฀standards;฀rapid฀technological฀and฀market฀change;฀manufacturing฀and฀sourcing฀risks;฀product฀defects฀and฀returns;฀litigation฀involving฀
patents,฀intellectual฀property,฀antitrust,฀shareholder฀and฀other฀matters;฀the฀ability฀to฀recruit฀and฀retain฀key฀personnel;฀our฀ability฀to฀manage฀financial฀risk;฀currency฀fluctuations฀and฀other฀international฀฀
factors;฀potential฀volatility฀in฀operating฀results฀and฀other฀factors฀listed฀in฀our฀most฀recent฀reports฀on฀Form฀10-K,฀10-Q฀and฀8-K.฀The฀financial฀information฀contained฀in฀this฀Annual฀Report฀should฀be฀read฀
in฀conjunction฀with฀the฀consolidated฀financial฀statements฀and฀notes฀thereto฀that฀are฀included฀in฀this฀report.฀Our฀results฀of฀operations฀for฀the฀year฀ended฀July฀31,฀2004฀are฀not฀necessarily฀indicative฀฀
of฀our฀operating฀results฀for฀any฀future฀periods.฀We฀undertake฀no฀obligation฀to฀revise฀or฀update฀any฀forward-looking฀statements฀for฀any฀reason.฀
For฀fiscal฀2004,฀pro฀forma฀net฀income฀excluded฀the฀following฀items:฀in-process฀research฀and฀development฀of฀$3฀million,฀payroll฀tax฀on฀stock฀option฀exercises฀of฀$16฀million,฀amortization฀of฀deferred฀
stock-based฀compensation฀of฀$244฀million,฀amortization฀of฀purchased฀intangible฀assets฀of฀$242฀million,฀gains฀on฀publicly฀traded฀equity฀securities฀of฀($85)฀million,฀income฀tax฀effect฀of฀($51)฀million฀and฀
cumulative฀effect฀of฀accounting฀change,฀net฀of฀tax,฀of฀$567฀million.
Copyright฀©฀2004฀Cisco฀Systems,฀Inc.฀All฀rights฀reserved.฀Changing฀the฀Way฀We฀Work,฀Live,฀Play,฀and฀Learn฀is฀a฀service฀mark,฀and฀Cisco,฀Cisco฀Systems,฀the฀Cisco฀Systems฀logo,฀Cisco฀IOS,฀Cisco฀
Systems฀Capital,฀and฀Networking฀Academy฀are฀registered฀trademarks฀or฀trademarks฀of฀Cisco฀Systems,฀Inc.฀and/or฀its฀affiliates฀in฀the฀U.S.฀and฀certain฀other฀countries.฀All฀other฀trademarks฀mentioned฀
in฀this฀document฀or฀Website฀are฀the฀property฀of฀their฀respective฀owners.฀The฀use฀of฀the฀word฀partner฀does฀not฀imply฀a฀partnership฀relationship฀between฀Cisco฀and฀any฀other฀company.฀(0406R)
Cisco฀Systems,฀Inc.฀is฀the฀worldwide฀leader฀in฀networking฀for฀the฀
Internet.฀Today,฀networks฀are฀an฀essential฀part฀of฀business,฀educa-
tion,฀government,฀and฀home฀communications.฀Cisco฀hardware,฀
software,฀and฀service฀offerings฀are฀used฀to฀create฀the฀Internet฀
solutions฀that฀make฀these฀networks฀possible,฀giving฀individuals,฀
companies,฀and฀countries฀easy฀access฀to฀information฀anywhere,฀฀
at฀any฀time.฀In฀addition,฀Cisco฀has฀pioneered฀the฀use฀of฀the฀Internet฀฀
in฀its฀own฀business฀practice฀and฀offers฀consulting฀services฀based฀
on฀its฀experience฀to฀help฀other฀organizations฀around฀the฀world.
Cisco฀was฀founded฀in฀1984฀by฀a฀small฀group฀of฀computer฀scientists฀
from฀Stanford฀University.฀This฀year,฀the฀company฀celebrates฀20฀
years฀of฀commitment฀to฀technology฀innovation,฀industry฀leadership,฀
and฀corporate฀social฀responsibility.฀Since฀the฀company’s฀inception,฀
Cisco฀engineers฀have฀led฀in฀the฀innovation฀of฀Internet฀Protocol฀
(IP)-based฀networking฀technologies.฀This฀tradition฀of฀IP฀innovation฀฀
continues฀with฀the฀development฀of฀industry-leading฀products฀in฀the฀฀
core฀technologies฀of฀routing฀and฀switching,฀along฀with฀Advanced฀฀
Technologies฀in฀areas฀such฀as฀home฀networking,฀IP฀telephony,฀
optical฀networking,฀security,฀storage฀area฀networking,฀and฀wireless฀฀
technology.฀In฀addition฀to฀its฀products,฀Cisco฀provides฀a฀broad฀
range฀of฀service฀offerings,฀including฀technical฀support฀and฀
advanced฀services.฀Cisco฀sells฀its฀products฀and฀services,฀both฀
directly฀through฀its฀own฀sales฀force฀as฀well฀as฀through฀its฀channel฀
partners,฀to฀large฀enterprises,฀commercial฀businesses,฀service฀
providers,฀and฀consumers.฀
As฀a฀company,฀Cisco฀operates฀on฀core฀values฀of฀customer฀focus฀
and฀corporate฀social฀responsibility.฀We฀express฀these฀values฀
through฀global฀involvement฀in฀educational,฀community,฀and฀
philanthropic฀efforts.฀
We฀invite฀you฀to฀learn฀more฀about฀Cisco฀at฀www.cisco.com.
Cisco฀has฀offices฀in฀the฀following฀countries.฀Addresses,฀phone฀numbers,฀and฀fax฀numbers฀are฀listed฀at฀www.cisco.com/go/offices.
ARGENTINA฀•฀AUSTRALIA฀•฀AUSTRIA฀•฀BARBADOS฀•฀BELGIUM฀•฀BRAZIL฀•฀BULGARIA฀•฀CANADA฀•฀CHILE฀•฀CHINA฀•฀COLOMBIA฀•฀COSTA฀RICA฀•฀CROATIA฀•฀CYPRUS฀•฀CZECH฀REPUBLIC฀
DENMARK฀•฀DOMINICAN฀REPUBLIC฀•฀DUBAI,฀UAE฀•฀EGYPT฀•฀ESTONIA฀•฀FINLAND฀•฀FRANCE฀•฀GERMANY฀•฀GREECE฀•฀HONG฀KONG฀•฀HUNGARY฀•฀INDIA฀•฀INDONESIA฀•฀IRELAND฀
ISRAEL฀•฀ITALY฀•฀JAPAN฀•฀KAZAKHSTAN฀•฀KENYA฀•฀KOREA฀•฀LATVIA฀•฀LEBANON฀•฀LITHUANIA฀•฀LUXEMBOURG฀•฀MALAYSIA฀•฀MEXICO฀•฀MOROCCO฀•฀NETHERLANDS฀•฀NEW฀ZEALAND฀฀
NIGERIA฀•฀NORWAY฀•฀PAKISTAN฀•฀PANAMA฀•฀PERU฀•฀PHILIPPINES฀•฀POLAND฀•฀PORTUGAL฀•฀PUERTO฀RICO฀•฀ROMANIA฀•฀RUSSIA฀•฀SAUDI฀ARABIA฀•฀SCOTLAND฀•฀SERBIA฀&฀MONTENEGRO฀
SINGAPORE฀•฀SLOVAKIA฀•฀SLOVENIA฀•฀SOUTH฀AFRICA฀•฀SPAIN฀•฀SRI฀LANKA฀•฀SWEDEN฀•฀SWITZERLAND฀•฀TAIWAN฀•฀THAILAND฀•฀TURKEY฀•฀UKRAINE฀•฀UNITED฀KINGDOM฀•฀UNITED฀
STATES฀•฀VENEZUELA฀•฀VIETNAM฀
Corporate฀Headquarters
San฀Jose,฀California,฀USA
European฀Headquarters
Amsterdam,฀Netherlands
Americas฀Headquarters
San฀Jose,฀California,฀USA
Asia฀Pacific฀Headquarters
Singapore
WORLDWIDE฀OFFICES