SCIENCE

SAN JOSE, CA -- Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its fiscal year 2001 and fourth quarter results for the period ending July 28, 2001. Net sales for fiscal 2001 were $22.29 billion, compared with $18.93 billion for fiscal 2000, an increase of 18%. Pro forma net income, which excludes the effects of acquisition charges, payroll tax on stock option exercises, restructuring costs and other special charges, excess inventory charge (benefit), and net gains realized on minority investments, was $3.09 billion or $0.41 per share for fiscal 2001, compared with pro forma net income of $3.91 billion or $0.53 per share for fiscal 2000, decreases of 21% and 23%, respectively. Actual net loss for fiscal 2001 was $1.01 billion or $0.14 per share, compared with actual net income of $2.67 billion or $0.36 per share for fiscal 2000. Net sales for the fourth quarter of fiscal 2001 were $4.30 billion, compared with $5.72 billion for the same period last year, a decrease of 25%. Pro forma net income was $163 million or $0.02 per share for the fourth quarter of fiscal 2001, compared with pro forma net income of $1.20 billion or $0.16 per share for the fourth quarter of fiscal 2000, decreases of 86% and 87%, respectively. Actual net income for the fourth quarter of fiscal 2001 was $7 million or $0.00 per share, compared with actual net income of $796 million or $0.11 per share for the same period last year. "In many ways, fiscal 2001 was like two different years, starting out even more positive than we anticipated through December with year-over-year growth in the 60%+ range and then turning into an extremely challenging second half of the year," said John Chambers, CEO of Cisco Systems. "In a consolidating market, our competitive advantages continue to play to what our customers value. Cisco is starting to develop early business momentum in key markets and we believe we are very well positioned from a financial and market share perspective to lead as our customers standardize on a few strategic partners as the market recovers." "We believe that productivity is the promise of the Internet and we are just beginning to see the paybacks of Internet applications and networking technology," continued Chambers. "We are in the very early stages of a major technological revolution and the long-term outlook for this industry and the role that Cisco plays in it has not dramatically changed." For more information visit www.cisco.com