-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, a5ebuyOjWju1XiIH+v2UQEao8An+aTbRTfil6iAZ4fQAGK0n6yGPc4lg3qmSWVTM cueNlB9zbHW2pqxOl1S2JA== 0000891618-95-000320.txt : 19950613 0000891618-95-000320.hdr.sgml : 19950613 ACCESSION NUMBER: 0000891618-95-000320 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950612 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CISCO SYSTEMS INC CENTRAL INDEX KEY: 0000858877 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 770059951 STATE OF INCORPORATION: CA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18225 FILM NUMBER: 95546363 BUSINESS ADDRESS: STREET 1: 170 W TASMAN DR CITY: SAN JOSE STATE: CA ZIP: 95134 BUSINESS PHONE: 4085264000 MAIL ADDRESS: STREET 1: 170 WEST TASMAN DRIVE CITY: SAN JOSE STATE: CA ZIP: 95134-1706 10-Q 1 QUARTER REPORT FOR PERIOD ENDING 4-30-95 1 FORM 10-Q (Mark one) / X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended APRIL 30, 1995 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition to period from ____________ _____________ Commission file number 0-18225 CISCO SYSTEMS, INC. (Exact name of registrant as specified in its charter) California 77-0059951 (State or other jurisdiction (I.R.S. Employer of incorporation or Identification Number) organization) 170 W. Tasman Drive San Jose, California 95134 (Address of principal executive office and zip code) (408) 526-4000 (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. YES X NO -------- --------- As of June 1, 1995, 271,326,925 shares of the Registrant's common stock were outstanding. 1 2 CISCO SYSTEMS, INC. FORM 10-Q FOR THE QUARTER ENDED APRIL 30, 1995 INDEX
Page Facing sheet 1 Index 2 Part I. Financial information Item 1. a) Consolidated balance sheets at April 30, 1995 and July 31, 1994 3 b) Consolidated statements of operations for the three and nine month periods ended April 30, 1995 and May 1, 1994 4 c) Consolidated statements of cash flows for the nine month periods ended April 30, 1995 and May 1, 1994 5 d) Notes to consolidated financial statements 6 Item 2. Management's discussion and analysis of financial condition and results of operations 9 Part II. Other information Item 6 Exhibits and Reports on Form 8-K 12
2 3 ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA CISCO SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (In thousands)
April 30, July 31, 1995 1994 ----------- -------- (Unaudited) ASSETS Current assets: Cash and equivalents $ 107,010 $ 53,567 Short-term investments 257,572 129,219 Accounts receivable, net of allowance for doubtful accounts of $10,855 at April 30, 1995 and $8,077 at July 31, 1994 355,504 237,570 Inventories 52,864 27,896 Deferred income taxes 60,428 46,739 Prepaid expenses and other current assets 18,308 12,686 ---------- ---------- Total current assets 851,686 507,677 Investments 401,845 371,494 Restricted investments 114,650 85,900 Property and equipment, net 119,554 77,449 Other assets 51,489 11,174 ---------- ---------- Total assets $1,539,224 $1,053,694 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 66,398 $ 31,708 Income taxes payable 50,197 42,958 Accrued payroll and related expenses 76,302 46,334 Other accrued liabilities 124,277 84,512 ---------- ---------- Total current liabilities 317,174 205,512 Minority Interest 40,615 Shareholders' equity: Preferred stock, no par value, 5,000 shares authorized: none issued or outstanding at April 30, 1995 and July 31, 1994 Common stock, no par value, 320,000 shares authorized: 270,326 shares issued and outstanding at April 30, 1995 and 257,697 at July 31, 1994 321,779 227,835 Retained earnings 818,425 620,135 Unrealized gains on marketable securities 32,903 Cumulative translation adjustments 8,328 212 ---------- ---------- Total shareholders' equity 1,181,435 848,182 ---------- ---------- Total liabilities and shareholders' equity $1,539,224 $1,053,694 ========== ==========
The accompanying notes are an integral part of these financial statements. 3 4 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per-share amounts)
Three Months Nine Months Ended Ended ------------------------- ------------------------ April 30, May 1, April 30, May 1, 1995 1994 1995 1994 --------- ------- --------- ------- (Unaudited) Net sales $509,910 $331,193 $1,357,732 $881,816 Cost of sales 165,522 109,141 441,695 294,420 -------- -------- ---------- -------- Gross margin 344,388 222,052 916,037 587,396 Operating expenses: Research and development 43,992 23,311 112,158 62,916 Sales and marketing 88,868 55,358 235,644 141,417 General and administrative 20,652 11,796 51,612 33,665 Purchased research and development 95,760 -------- -------- ---------- -------- Total operating expenses 153,512 90,465 495,174 237,998 -------- -------- ---------- -------- Operating income 190,876 131,587 420,863 349,398 Interest and other income, net 10,785 4,892 26,371 15,166 -------- -------- ---------- -------- Income before provision for income taxes 201,661 136,479 447,234 364,564 Provision for income taxes 76,631 52,135 169,949 139,263 -------- -------- ---------- -------- Net income $125,030 $ 84,344 $ 277,285 $225,301 ======== ======== ========== ======== Net income per share $ .45 $ .32 $ 1.01 $ .85 ======== ======== ========== ======== Shares used in per-share calculation 278,872 266,126 275,719 265,020 ======== ======== ========== ========
The accompanying notes are an integral part of these financial statements. 4 5 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Nine Months Ended ------------------------- April 30, May 1, 1995 1994 --------- ------ (Unaudited) Cash flows from operating activities: Net income $ 277,285 $ 225,301 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 42,132 20,285 Deferred income taxes (54,094) (20,082) Change in operating assets and liabilities: Accounts receivable (115,157) (73,055) Inventories (24,884) (9,611) Prepaid expenses and other current assets (5,605) (7,184) Accounts payable 33,379 4,399 Income taxes payable 40,927 48,953 Accrued payroll and related expenses 29,968 13,819 Other accrued liabilities 35,093 23,487 ---------- ---------- Total adjustments (18,241) 1,011 ---------- ---------- Net cash provided by operating activities 259,044 226,312 ---------- ---------- Cash flows from investing activities: Purchases of short-term investments (280,725) (66,256) Proceeds from sales of short-term investments 115,512 37,234 Maturities of short-term investments 85,505 43,700 Purchases of investments (206,581) (358,208) Proceeds from sales of investments 155,740 233,099 Purchases of restricted investments (74,343) Proceeds from sales of restricted investments 52,341 Acquisition of property and equipment (80,498) (41,759) Acquisition of business, net of cash acquired and purchased research and development (17,920) Decrease (increase) in other assets 13,136 (4,254) ---------- ---------- Net cash used by investing activities (215,831) (178,446) ---------- ---------- Cash flows from financing activities: Issuance of common stock 28,891 19,826 Repurchase of common stock (67,325) Proceeds from sale of subsidiary stock 40,548 Other 8,116 232 ---------- ---------- Net cash provided by financing activities 10,230 20,058 ---------- ---------- Net increase in cash and equivalents 53,443 67,924 Cash and equivalents, beginning of period 53,567 27,247 ---------- ---------- Cash and equivalents, end of period $ 107,010 $ 95,171 ========== ==========
The accompanying notes are an integral part of these financial statements. 5 6 CISCO SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year The Company's fiscal year is the 52 or 53 weeks ending on the last Sunday in July. Fiscal 1995 is a 52 week year while fiscal 1994 was a 53 week year. The extra week in fiscal 1994 was included in the second quarter ended January 30, 1994. Basis of Presentation The consolidated balance sheet as of April 30, 1995, and the consolidated statements of operations and cash flows for the periods ended April 30, 1995 and May 1, 1994, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended July 31, 1994. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at April 30, 1995 and for all periods presented, have been made. The results of operations for the period ended April 30, 1995 are not necessarily indicative of the operating results for the full year. The July 31, 1994 balance sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. Computation of Net Income Per Share Net income per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of stock options. 2. BUSINESS COMBINATIONS On August 8, 1994, the Company acquired Newport Systems Solutions, Inc. ("Newport"), a privately held networking company providing software-based routers for remote network sites. The Company issued approximately 3.3 million shares of common stock for all the outstanding stock of Newport in a transaction which has been accounted for as a pooling of interests. The Company also assumed options to purchase Newport stock which remain outstanding as options to purchase approximately 200,000 shares of the Company's common stock. 6 7 On December 6, 1994, the Company acquired Kalpana, Inc., a privately held manufacturer of ethernet switches. Under the terms of the agreement, the Company issued approximately 6.8 million shares of common stock for all the outstanding stock of Kalpana in a transaction also accounted for as a pooling of interests. In connection with this transaction, the Company assumed options to purchase Kalpana stock which remain outstanding as options to purchase approximately 520,000 shares of the Company's common stock. The aggregated historical operations of Newport and Kalpana are not material to the Company's consolidated operations and financial position, therefore, prior period statements have not been restated. Effective January 11, 1995, the Company acquired substantially all of the assets and liabilities of LightStream Corporation ("LightStream") for $120.0 million in cash and related acquisition costs of approximately $.5 million. LightStream was a developer of enterprise-class Asynchronous Transfer Mode ("ATM") switching technology. The acquisition was accounted for as a purchase. Accordingly, the results of operations of the acquired business and the fair market values of the acquired assets and liabilities were included in the Company's financial statements as of the effective date. The purchase price was allocated to the assets and liabilities acquired based on fair market values as follows (in thousands): Cash $ 6,320 Accounts receivable 2,777 Other current assets 101 Property and equipment 1,815 Purchased research and development 95,760 Goodwill 19,710 Current liabilities (5,983) ---------- $ 120,500 ==========
The amount allocated to purchased research and development was determined through known valuation techniques in the high technology communications industry. Amounts allocated to goodwill will be amortized on a straight-line basis over periods ranging from two to five years. The following summary, prepared on a pro forma basis, combines the results of operations as if LightStream had been acquired as of the beginning of the periods presented, after including the impact of certain adjustments, such as: goodwill amortization, estimated changes in interest income due to cash outlays associated with the transaction, and the related income tax effects (in thousands, except per share amounts):
Nine months ended ---------------------------- April 30, May 1, 1995 1994 ----------- ----------- (Unaudited) Sales $ 1,366,126 $ 882,946 Net income $ 268,764 $ 215,126 Net income per share $ .97 $ .81
7 8 The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been in effect for the entire periods presented. In addition, they are not intended to be a projection of future results and do not reflect any synergies that might be achieved from combined operations. 3. SHAREHOLDERS' EQUITY A two-for-one stock split of the Company's common stock was approved by the Board of Directors on February 8, 1994 payable to shareholders of record on March 4, 1994. Share and per-share data for the period ended May 1, 1994 in the consolidated financial statements have been adjusted to give effect to the two-for-one stock split. 4. BALANCE SHEET DETAIL (In thousands)
Inventories: April 30, July 31, 1995 1994 ---------- ---------- (Unaudited) Raw materials $ 24,173 $ 13,724 Work in process 8,531 8,649 Finished goods 16,319 2,090 Demonstration systems 3,841 3,433 ---------- ---------- $ 52,864 $ 27,896 ========== ==========
5. INVESTMENTS Effective August 1, 1994, the Company adopted Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities." This statement requires the Company to classify debt and equity securities into one of three categories: held-to-maturity, trading, or available-for-sale. At April 30, 1995, substantially all of the Company's investments were classified as available-for-sale and the difference between the cost and fair market value of those securities, net of the tax effect, is shown as a separate component of shareholders' equity. The following table summarizes the Company's securities at April 30, 1995 (in thousands):
Unrealized Amortized Market Gains Carrying Issue Cost Value (Losses) Value - ---------------------------------- --------- --------- ---------- ---------- U.S. government notes and bonds $ 170,106 $ 166,075 $ (4,031) $ 166,075 State, municipal, and county government notes and bonds 411,389 405,479 (5,910) 405,479 Foreign government notes and bonds 41,150 41,595 445 41,595 Corporate notes and bonds 59,554 59,520 (34) 59,520 Corporate equity securities 2,900 65,585 62,685 65,585 Municipal mutual funds 35,813 35,813 35,813 --------- --------- --------- --------- $ 720,912 $ 774,067 53,155 $ 774,067 ========= ========= ========= ========= Tax effect (20,252) --------- Net unrealized gains $ 32,903 =========
8 9 6. INCOME TAXES The Company paid income taxes of $180.3 million for the nine months ended April 30, 1995 and $108.0 million for the nine months ended May 1, 1994. The Company's income taxes currently payable for both federal and state purposes have been reduced by the tax benefit from stock option transactions. This benefit totaled $33.7 million in the first nine months of 1995 and was credited directly to shareholders' equity. 7. MINORITY INTEREST In October 1994, the Company's Japanese subsidiary, Nihon Cisco Systems, K. K., completed the sale of preferred stock to a group of outside investors in a private placement. Aggregate proceeds to Nihon Cisco Systems, K.K. were approximately $40.5 million. The investors received 26.8% of the voting rights. The Company retains ownership of all issued and outstanding common stock of its subsidiary amounting to 73.2% of the voting rights. Each share of preferred stock is convertible into one share of common stock at any time at the option of the holder. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net sales grew from $331.2 million in the third quarter of 1994 to $509.9 million in the third quarter of 1995. Net sales for the first nine months of 1994 were $881.8 million, compared to $1,357.7 million in the first nine months of 1995. The 54.0% increases in net sales between the two three and nine month periods were primarily a result of increasing unit sales of the Cisco 7010, the Cisco 7000, and the Cisco 2500 product family, sales of new products including the Cisco 4500, as well as to initial market acceptance of the Company's high speed switching products. These increases were partially offset by decreasing unit sales of the Company's older product lines, comprising of the AGS+, as well as the Cisco 2000 and Cisco 3000 product families. Sales to international customers increased from 43.4% of net sales in the third quarter of 1994 to 44.5% for the third quarter of 1995. International sales in the first nine months of 1995 were 42.3% of net sales, increasing slightly from 41.8% for the same period in 1994. Gross margins were 67.5% for both the third quarter and first nine months of 1995. This compares to gross margins of 67.0% and 66.6% for each of the corresponding periods in 1994. Gross margins have improved as a result of several factors, including lower material costs achieved through volume discounts and certain manufacturing overhead efficiencies. This was partially offset by the continued shift in revenue mix to the Company's lower margin remote access products. Research and development expenses increased $20.7 million from the third quarter of 1994 to the third quarter of 1995, and increased $49.2 million between the first nine months of 1994 and the first nine months of 1995. This represents increases from 7.0% to 8.6% of net sales in the quarter to quarter period and from 7.1% to 8.3% of net sales for the first nine months of each fiscal year. The increases reflect the Company's ongoing research and development efforts, including the further development of 9 10 its CiscoFusion architecture; as well as acquiring technologies, in order to bring a broad range of products to market in a timely fashion. A significant portion of the increases were due to additional personnel, primarily from internal hiring and to a lesser extent through acquisitions, material costs for prototypes, and depreciation on new equipment. All of the Company's research and development costs are expensed as incurred. Sales and marketing expenses increased $33.5 million between the third quarters of 1994 and 1995, and $94.2 million from the first nine months of 1994 to the same period in 1995. This represents increases from 16.7% to 17.4% of net sales in the quarter to quarter period and from 16.0% to 17.4% of net sales for the first nine months of each fiscal year. The increases in these expenses resulted from an increase in the size of the Company's direct sales force and their commissions, additional marketing programs to support the launch of new products, the entry into new markets, both domestic and international, and expanding distribution channels. General and administrative expenses rose $8.9 million between the third quarters of 1994 and 1995, an increase from 3.6% to 4.1% of net sales. These expenses increased $17.9 million from the first nine months of 1994 to the first nine months of 1995. As a percentage of net sales, general and administrative expenses remained constant at 3.8% for each nine month period. The dollar and percentage increase in these expenses for the comparable three month periods was due to increased personnel costs, implementation of the Company's new information system, and the amortization of goodwill since the date of the acquisition of the assets and liabilities of LightStream (See note 2). The dollar increase in these expenses for the comparable nine month periods can be attributed to the same factors noted above. The amount expensed to purchased research and development arose from the acquisition of the assets and liabilities of LightStream (See note 2). RISK FACTORS Dependence on New Product Development; Rapid Technological and Market Change; and Management of Growth The Company's growth is dependent upon market growth and its ability to enhance its existing products and introduce new products on a timely basis. The Company must also maintain its ability to manage any such growth effectively. In this regard, the Company recently completed an internal reorganization which it believes will better enable it to address its markets. No assurance can be given that this reorganization will achieve its objectives. Failure to manage growth effectively could materially and adversely affect the Company's business and operating results. The Company expects that in the future its net sales will grow at a slower rate than was experienced in previous periods and that on a quarter-to-quarter basis, the Company's growth in net sales may be significantly lower than its historical quarterly growth rate. The Company has been experiencing longer sales cycles for its core products resulting from larger order sizes and believes that some customers may be deferring purchases in order to complete detailed reviews of their overall network plans. In addition, 10 11 in response to customer demand, the Company has from time to time reduced its product manufacturing lead times and its backlog of orders. To the extent backlog is reduced during any particular period, it would result in more variability and less predictability in the Company's quarter-to-quarter net sales and operating results. The Company also expects that gross margins may be adversely affected by increases in material or labor costs, heightened price competition, and by changes in channels of distribution or in the mix of products sold. In particular, the Company broadened its product line by introducing its first network access product in August 1992. Since that time, sales of these products, which are generally lower-priced and carry lower gross margins than the Company's core products, have increased more rapidly than the sales of the core products. The Company also expects that its operating margins may decrease as it continues to hire additional personnel and to increase other operating expenses to support its business. The results of operations for the first nine months of 1995 are not necessarily indicative of results to be expected in future periods and the Company's operating results may be subject to quarterly fluctuations as a result of a number of factors, including the integration of people, operations, and products from acquired businesses and technologies; increased competition which the Company expects; the introduction and market acceptance of new products, including high speed switching and ATM technologies; variations in sales channels, product costs, or mix of products sold; the timing of orders and manufacturing lead times; and changes in general economic conditions, any of which could have an adverse impact on operations and financial results. Volatility of Stock Price The Company's Common Stock has experienced substantial price volatility, particularly as a result of variations between the Company's actual or anticipated financial results and the published expectations of analysts and as a result of announcements by the Company and its competitors. In addition, the stock market has experienced extreme price and volume fluctuations which have affected the market price of many technology companies in particular and which have often been unrelated to the operating performance of these companies. These broad market fluctuations, as well as general economic and political conditions, may adversely affect the market price of the Company's Common Stock. LIQUIDITY AND CAPITAL RESOURCES Cash, short-term investments, and investments increased by $212.1 million from July 31, 1994 to April 30, 1995, primarily as a result of cash generated by operations and proceeds received from minority shareholders in the Company's Japanese subsidiary (See note 7). The increase was partially offset by the cash paid to acquire the assets and liabilities of LightStream (See note 2). Accounts receivable increased 49.6% from July 31, 1994 to April 30, 1995, primarily as a result of higher sales levels. Days sales outstanding in receivables were 63 days at the end of the third quarter, versus 59 days at July 31, 1994. During the quarter, a greater proportion of the Company's sales were made outside the U.S., where customer payment practices are often longer. Inventories increased 89.5% for the first nine months of fiscal 1995. The increase in inventory was necessary to 11 12 support the higher sales volume. In addition, inventory levels were unusually low at July 31, 1994 because of the planned delay in raw material receipts to accommodate the manufacturing operations move to the Company's new headquarters. As a result, inventory turnover decreased from 15.8 turns at July 31, 1994 to 14.6 turns at April 30, 1995. Accounts payable increased 109.4% during the same period, due to increases in capital expenditures, operating expenses, and material purchases to support the growth in net sales. The 64.7% increase in accrued payroll and related expenses during the period is primarily a result of personnel additions during the nine month period. Other accrued liabilities increased by 47.1%, largely due to increases in warranty accruals and deferred service contracts. At April 30, 1995, the Company has a line of credit totaling $25 million, down from $50 million at July 31, 1994. There were no borrowings under this agreement. The Company has entered into certain lease arrangements in San Jose, California, and Raleigh, North Carolina, where it has established its headquarters operations and certain research and development and customer support activities, respectively. In connection with these transactions, the Company pledged $114.6 million of its investments as collateral for certain obligations of the leases. The restricted investments balance will continue to increase as the Company phases in operations at these lease sites. Under the Company's ongoing stock repurchase program, shares have been purchased periodically and retired. During the nine months ended April 30, 1995, the Company purchased and retired approximately 2.0 million shares for an aggregate price of $67.5 million. As of April 30, 1995, the Company was authorized to repurchase up to an additional 5.0 million shares of its common stock in open market or privately negotiated transactions. The Company's management believes that its current cash and equivalents, short-term investments, lines of credit, and cash generated from operations will satisfy its expected working capital and capital expenditure requirements through 1995. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 11 Computation of net income per share 27 Financial Data Schedule (b) Reports on Form 8-K None. 12 13 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Cisco Systems, Inc. Date: June 12, 1995 By /s/ Larry R. Carter ------------------------------------------ Larry R. Carter, Vice President Finance, and Chief Financial Officer (Principal Financial and Accounting Officer) 13 EX-11 2 COMPUTATION OF NET INCOME PER SHARE 1 EXHIBIT 11 COMPUTATION OF NET INCOME PER SHARE IN ACCORDANCE WITH INTERPRETIVE RELEASE NO. 34-9083 (In thousands, except per-share amounts)
Three Months Nine Months Ended Ended ---------------------- ----------------------- Apr 30, May 1, Apr 30, May 1, 1995 1994 1995 1994 ------- ------ ------- -------- PRIMARY EARNINGS PER SHARE (Unaudited) Actual weighted average common shares outstanding for the period 269,590 256,295 266,424 253,901 Weighted average shares assuming exercise of employee stock options using average market price 9,282 9,831 9,295 11,119 -------- -------- -------- -------- Shares used in per-share calculations 278,872 266,126 275,719 265,020 ======== ======== ======== ======== Net income applicable to primary income per share $125,030 $ 84,344 $277,285 $225,301 ======== ======== ======== ======== Net income per share based on SEC Interpretive $ .45 $ .32 $ 1.01 $ .85 Release No. 34-9083 ======== ======== ======== ======== FULLY DILUTED EARNINGS PER SHARE Actual weighted average common shares outstanding for the period 269,590 256,295 266,424 253,901 Weighted average shares assuming exercise of employee stock options using the greater of ending or average market price 9,841 9,831 9,807 11,284 -------- -------- -------- -------- Shares used in per-share calculations 279,431 266,126 276,231 265,185 ======== ======== ======== ======== Net income applicable to fully diluted income per share $125,030 $ 84,344 $277,285 $225,301 ======== ======== ======== ======== Net income per share based on SEC Interpretive Release No. 34-9083 $ .45 $ .32 $ 1.00 $ .85 ======== ======== ======== ========
These calculations are submitted in accordance with Securities Exchange Act of 1934 Release No. 34-9083 14 EX-27 3 FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the consolidated balance sheet, consolidated statement of income and consolidated statement of cash flows included in the Company's Form 10-Q for the period ending April 30, 1995, and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS JUL-30-1995 AUG-01-1994 APR-30-1995 107,010 774,067 366,359 10,855 52,864 851,686 214,111 94,557 1,539,224 317,174 0 321,779 0 0 859,656 1,539,224 1,357,732 1,357,732 441,695 936,869 0 0 0 447,234 169,949 277,285 0 0 0 277,285 1.01 0
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