Cisco(R) (NASDAQ: CSCO) 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.

Net sales for the first nine months of fiscal 2008 were $29.2 billion, compared with $25.5 billion for the first nine months of fiscal 2007. Net income for the first nine months of fiscal 2008, on a GAAP basis, was $6.0 billion or $0.97 per share, compared with $5.4 billion or $0.86 per share for the first nine months of fiscal 2007. Non-GAAP net income for the first nine months of fiscal 2008 was $7.2 billion or $1.16 per share, compared with $6.1 billion or $0.98 per share for the first nine months of fiscal 2007.

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.