Cisco 2010 Annual Report Download - page 42

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Consolidated Statements of Operations
(in millions, except per-share amounts)
Years Ended July 31, 2010 July 25, 2009 July 26, 2008
NET SALES:
Product $ 32,420 $ 29,131 $ 33,099
Service 7,620 6,986 6,441
Total net sales 40,040 36,117 39,540
COST OF SALES:
Product 11,620 10,481 11,660
Service 2,777 2,542 2,534
Total cost of sales 14,397 13,023 14,194
GROSS MARGIN 25,643 23,094 25,346
OPERATING EXPENSES:
Research and development 5,273 5,208 5,325
Sales and marketing 8,716 8,403 8,690
General and administrative 1,999 1,565 1,387
Amortization of purchased intangible assets 491 533 499
In-process research and development —63 3
Total operating expenses 16,479 15,772 15,904
OPERATING INCOME 9,164 7,322 9,442
Interest income 635 845 1,143
Interest expense (623) (346) (319)
Other income (loss), net 239 (128) (11)
Interest and other income, net 251 371 813
INCOME BEFORE PROVISION FOR INCOME TAXES 9,415 7,693 10,255
Provision for income taxes 1,648 1,559 2,203
NET INCOME $ 7,767 $ 6,134 $ 8,052
Net income per share—basic $ 1.36 $ 1.05 $ 1.35
Net income per share—diluted $ 1.33 $ 1.05 $ 1.31
Shares used in per-share calculation—basic 5,732 5,828 5,986
Shares used in per-share calculation—diluted 5,848 5,857 6,163
See Notes to Consolidated Financial Statements.
40 Cisco Systems, Inc.