Cisco Systems, Inc. Securities Litigation 01-CV-20418-Supplemental Evidentiary Appendix In

80 Pages·2006·2.26 MB·English

DEAN S. KRISTY (State Bar No . 157646)
KEVIN P. MUCK (State Bar No . 120918)
2 FELIX S . LEE (State Bar No . 197084)
CHRISTOPHER A. GARCIA (State Bar No . 215184)
3 JENNIFER C . BRETAN (State Bar No . 233475)
FENWICK & WEST LL P
4 275 Battery Street
San Francisco, California 94111
5 Telephone : [phone]
Facsimile : [phone]
6 E-mail :
1 Exhibit Description
2 120 December Fiscal Year 2000 Close Meeting Materials (excerpts )
3 121 December Fiscal Year 2001 Close Meeting Materials (excerpts )
4 122 January Fiscal Year 2001 Close Meeting Materials (excerpts )
5 123 Relevant portions of Plaintiffs' Amended Responses to Defendant Steven West' s
6 Second Set of Interrogatories to Plaintiffs Plumbers & Pipefitters Nationa l
7 Pension Fund, Central States, Southeast and Southwest Areas Pension Fund ,
8 Carpenters Pension Fund of Illinois and Alexander Nehring .
9 124 Relevant Portions of Defendant Cisco Systems, Inc's Third Amended Response s
10 to Plaintiff Central States, Southeast and Southwest Areas Pension Funds' Fift h
1 1 Set of Interrogatories to Defendant Cisco Systems, Inc .
12 125 Excerpts of September 15, 2005 deposition of Joseph Bass (Vice President &
FJ, 13 General Manager, Wavelength Routing Business Unit) .
[A J W
a a
14 126 Excerpts of March 28, 2005 deposition of Carol Kelly (Director, Manufacturin g
[~ o 0
1 5 Finance) .
16 127 Excerpts of September 28, 2005 deposition of Jeffrey Kouohakji (Controller,
17 Cisco Systems Capital) .
1 8 128 Excerpts of February 21-22, 2006 deposition of Blaine F . Nye (expert for
19 plaintiffs) .
20 129 Excerpts of August 30, and September 1, 2005 deposition of Dennis Powell (Vice
21 President & Worldwide Corporate Controller) .
22 130 Excerpts of February 13-14, 2006 deposition of Paul Regan (expert for plaintiffs) .
23 131 Excerpts of February 23-24, 2006 deposition of Roman Weil (expert for Cisco
24 defendants) .
25
26
27
28
1
SUPPLEMENTAL EVIDENTIARY APPENDIX IN SUPPORT OF MSJ -COI-20418-IW
EXHIBIT 120
Month 5
Cisco SYSTEMS
December FY 00 Close Meeting
December 30, 1999
9:00 a.m. - 1 :00 P .m .
Wall Street Conference Room - SJ-11T
_ OL ic Person 'lime Minutes
Consolidated P&L and Jonathan Chadwick 9:00-9:40 40
B/S Review
Actual vs . BudgetlFcst Analysis Janice Mclelland 9:40- 10:00 20
CS, Professional Services Nick Howard/Mona Harris/ 10:00- 10 :25 25
Larisa Mitroshkina/Mary Koonme n
Revenue Reserves Tom Cupples/ Darnell Brinkman 10:25 - 10 :45 20
■ Lease Accounting Rory Snyder/Sue Perkins 10:45 - 11 :00 15
Break : 11 :00- 11 :25 25
Other Income and Expense Laura Thien Wilson Tang 11 :25 - 11 :35 1 0
0 Bal . Sheet Investment Accts .
A/P Accruals & Entries Michele Sordal/Wendy Ray 11 :35 - 11 :45 1 0
Inventory Trend Analysis Frank Atter/Dawn Hartman/ 11 :45 - 12 :15 30
Gross Margin Bridge Laura Rivera/Donal Conro y
0/H Spending & Variance s
Summarize Additional Dennis Powell 12 :15 - 1 :00 45
Entries and Action Item s
General Comments:
1 . Pleaseplan on attending your portion of the meeting only .
2 . Final close entries will be booked by 6:00pm (WDI) and the final consolidation will be available by
9 :00 pm. WD4 .
Other-Attendees Binder Distributio n
Jim Anderson Carter 001 Anderson 00 6
Debi Normington Powell 002 Timmins 007
Larry Carter Normington 003 Salhus 008
David Rogan Chadwick 004 White 00 9
Dan Salhus PwC 005 Rossman 01 0
Rogan 01 1
0
CONFIDENTIAL CI5 PPNPF-HC 0017022
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11 Cisco Inc.
er CpMaudatad %tYt of Ope ration s
(In Thousands)
m
2
Qtr I Qtr 2 Qtr 3 Qtr 4 VT D QIr 1 November D ec ember Dec9mber QEr 2 Qtr 2 YTD VTD
Aetusl Actual Actual Actual Actua l Actual Actual Adu0i Conaaft Ac *l Cmnmlt Actual I1ud uUf5ommi t
Mookinp :
r Product $ 2 .6664. 982 8 2.977,897 $ 3 .293,878 $ 3.629 .727 S 12.566,484 S 4,006,682 $ 1 .387,442 S 1 .291 .114 $1,199.759 $2.679,556 S1399527 S 5 .394, 124 S 6,32,9,926
Training/Royaky 10 .302 10,593 12„663 10,678 44,234 10, 366 5,112 2, 820 4,989 7,932 9 .978 15 ,478 5 88.71 9
Sdvice 260 ,609 342,751 380,000 22 .753 1 .006,113 18,491 10,759 13.621 10.945 24 3, 79 23 .645 29,249 1 48,994
Support 391,832 391 , 832 457 ,462 137,788 185.617 165,703 343 4, 05 321,066 615 ;250 $ 738.91 8
Total B ookjrtg
5:
Produce S 2,390,003 $ 2,606,151 $ 2,884, 441 S 3,209 ,088 $ 11,099,683 S 3,544,598 $ 1,255,996 S 1,223 ,563 $ 1,166,344 $ 2,479,559 8 2,337,289 S 6 ,024,151 $ 5,817,850
TrrininglRoya.8y 10,302 10,591 12.663 10 .67 0 44,234 11,240 5.144 2,313 4,084 7.457 9.978 S 18 .697 S19,968
Support 192,24 1 215,945 259, 347 317. 361 954134 334,990 14305 144 .167 123 .749 289,172 239, 898 $ 624 .162 S M6 .395
Service 5,416 12,251 14,345 19,666 51 ,678 22,872 3 2, 88 9,436 3,400 12,744 6,300 S35,616 S27 .
Net Sales ,
CastOF Salra •
Pfadoct 668,430 740,994 825,176r 932 ,576 3 . 167 .228 1,016,029 353,944 356 .979 329,275 712,923 657,606 $ 1,728,952 S 1,665 .250
0v~rhNW 55 4, 75 61 ,529 66,454 71 ,711 255,169 82.957 28, 114 26,366 29,119 54,480 57.5.52 S 137,437 $141,80 1
Reeetves 76.093 73,332 87,409 108 ,209 345 .443 130,837 39,299 39 ,374 38 .920 78473 77, 740 $ 209310 $ 186,28 0
Su,pon 71 .475 86265 98,534 112,901 369 ,175 114,461 40X63 41 ,957 42,711 83,720 84,525 5197,181 S 193,806
Service 15,273 34,454 27, 224 23,345 75,296 31057 10,159 19,940 9 ,526 21 ,099 19.019 1 52 .156 542,995
Training ] 0903 11 ,774 12 ,406 10 ,702 44 ,883 11,302 4,376 5 .175 6007 965 1 12,079 $20,853 $ 74.092
Tom, Lest of 541. 2
GmsvMaig(n 1 .700.763 1.856,590 2038 ,591 2,297 ,289 7,913,233 2,526,957 928,778 900,708 842,924 1 .829.496 1 ,684,883 64,356,143 $4,154 .279
655% 65. 3% 64 .9% 544111. 65 .0% 64.6% 66 .0% 65 .2% 64.9% 656% 65. 11% 65 .0% 64 .6%
Opersling Expenses
Einginevving 338,598 372.438 433,354 506 .27 $ 1 ,650,664 536 ,017 185 ,837 193 ,043 " 199,607 378,880 371 , 791 $ 914 ,897 $ 893,153
13 .0% 131 1% 13,7% 14 .2%. 13 .6% 13.7% 13,2% 14.0,% 14,3% 13.6% 14. 3% 13 .7% 13,9%
Sales 385,452 437,275 492 ,041 529 ,309 1,844 , 107 599, 389 203,043 224,117 70,422 427, 160 415,446 $ 1 , 026,548 S 1,023,974
14.8% 15.4% 15 .5% 14 .9% 15 .2% 151 3% 14 .4% 16.2% 16.1% 15.3% 16. 0% 15 .3% 15 .9%
Marketing 134985 139.119 164,022 178,107 6 1 5 .333 213,654 7054 72 ,743 73,378 144,097 143. 886 $357,751 $ 358,99 6
5 .2% 4.9% 5 .2% 34 % 5 .1% 5 15% 5 .1% 53% 5,Mb 5.2,%, , 5 .31 - 5 .6%
G&A 87,669 94,288 112,422 143 ,802 438 , 182 134 ,825 66 .583 51,472 x,39 ,840 1118,0 `5a 73. 148 5 S 252 ,880 $ 198,33 7
3 .4% 3.3% 3 .5% 4.0% 3 .6% 3.49E 4 .7% 3.7% 2 .9% 4.2% 2.8% 3 .8% 3,196
Purchased R&D 40 ,900 348, 866 - 81,232 470,998 381,035 36213 30,21 1 S 4T 1,246
1 .6% 12. 3% 2 .3 % 3 .9% 9.7% 2. 1% 1 .1% 6 .1 %
Total Operating Expenses M,734 1,261,139 T32'M 3 .019 .2114 1 .164.919 557,028 341,373 ---301 .547 iM,4MI 11004.z77 $ 2.9fo 13U $2,474 .4
38 .0% 48.9% 37 .9% 40.5% 41 .2% 47.7% 39 .6% 39.2% 39 .795 39.4% 39. 7% 441% 58 .5 %
Operating Income
27.59% 163 % 27.0% 24 .1% 23 .8% 16.9% 26 .6% 26.0% 25 .8% 26.2% 26. 2% 20.8% 26.1 '
Remlized gain on saia of in 51,
Otherlncarne 56,888 86,442 91, 145 93,142 331 ,617 101 ,230 21 , 842 47 ,993 35,385 69 435 70,770 S 171,065 $ 165,770
_n Miaorlty I0ure t 4721 (18) (402) (1,157 907 1 I,A27 1003 S 1,31 9
Won* Before Taxes 4M353 J09 .752 KUIM 73 t,"6 $ 1,5E0,496 $1,94 . 97
(I) 3010% 19. 1% 29 .9% 26,7% 26 .5% 19. 5% 28.0% 29 .6% 28 .5% 28,8% 2910% 23. 4% 28.796
Income: Tnees 270,846 263,390 311,930 343,055 1 .189,7.,22 343,316 133,927 123 ,898 110,929 237 ,825 225,412 $608,141 $ 553,675
34.7% 48.4% 32. 9% 36 .6% 36 .9% 45.0% 340% 30.3% 30.0% 32. 2% 30.0% 38A% 40%
z Net Income ,
19.6% 9.9% 20. 1% 17.1 1k 16 .7 18, 10.7% 18,4% 20 .6% 19 .9% 10159E 20.3% 1 4.4% 2.0 1
71
I 5ngs Aar Sberc - Diluted 5.15 5 108 5. 18 5.17 3,58 5 .117 3 .071 5 .078
$.071 3 .149 $ . 145 5 .266 5 .355
n Shares used In FPS cakUlatian 3.419.307 3,486,162 3.526.988 3,561 ,620 3 ,497,550 3,601,681 3,631,519 3,650,226 3,639,800 3,641 ,300 3 ,639,800 3,620 ,540 3,639
ProF0tmeEP8 - Diluted 3 0.16 5 0 .18 $ 0.18 $ 0.20 5 0.72 5,228 3 .155 8 $ .081 2A78 3 .169 $. 145 $ .397 5 .35 5
0
..a
Nolr1 Prior petlud gnartetly data llaa been restated for fnolhtp completed in the current quarter.
0 PreTorma EPS In cludes Adj uignenls rolatad to IPR&D, tunorlizatiun of goodw0! and lamn5lblev end related sm effects
12128.1988 12:13 PM
EXHIBIT 121
CISCO SYSTEMS
December FY 01 Close Meeting
December 28, 2000
10:00 a.mi. -1 :30 p.m.
Wall Street Conference Room - 53-1113
Topic Person Time Minutes
Consolidated P&L and Dan Salhus 10 :00 --10 :20 20
BIS Review Mohan Patel
Actual vs_ Budget/Fcst Analysis Mary Kadomoto 10:20- 10 .30 to
CA (Customer Advocacy) Jim Fuller/Susan Powell/ 10:3 D -- 11 :00 30
Professional Services Tony Savastano/Susan Mcdonough
Break 11 :00- 11 :10 10
Revenue Reserves Mrinalini IngramlMichele Leung/ U .-ID-11 :50 40
Marty Menz
Lease Accounting Cynthia Farrell 11 :5D- 12 :10 20
Other Income and Expense Wilson Tang/Greg Bromberger 12 :10 - 12 :20 1 0
Bal. Sheet Investment Accts .
Break 12:20- 12:30 10
Inventory Trend Analysis Frank AtterlDawn Hartman/ 12:10 - 1 :00 30
Gross Margin Bridge Brian Karr
01H Spending & Variance s
Summarize Additional Dennis Powell 1 :00 - 1 :20 20
Entries and Action Item s
General Cori,nents,
1 . Please plan on attending yourportion of the meeting only.
2. Final close entries will be booked by 6 :00 pm and the final consolida tion will be available by
9:00 pm, W03 .
Other Attendees Binder Distribution
Larry Carter Carter 001 White 009
David Rogan Powell 002 Rossman 010
Johnson 003 Rogan Oi l
Chadwick. 004 Ashby 01 2
PwC 005 Pate! 01 3
Kadomoto 006 Teh 014
Timmins 007 Holland 01 5
Salhus 008
11
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tom. 337 43* 194 531 1 .1415 414 1(13 m 747 2,513 594 352 375 30 731 605 1 .725 1 ,1126
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twalp 87 711 91 93 Slu 102 170 191 191 230 & 6 T6 e2( 132 Ilp 312
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-r 245 210 310 347 1,176 sal 331 354 567 1675 334 4 160 177 166 357 440 Ml
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X27366.1 1156(4( S 0.474 1 11.0111 S 6.016 S .9744 S 4226 S 9k37 i 0114 5 6406. i 0.503 S 9357 5 0.1 7_S $ (0112(4 4315 3 6417' S 7,393 5 Rlm 1 01129 S 1.346
lame e2l~r.&u111m 1,91 7374 1.725 1 .201 7,161 13737 7,717 7,99 5,.17E 7186 7.21 6 5,514 1341 7,636 7.566 1445 7573 73192
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EXHIBIT 122