Cisco Systems said that it expects to record a charge of about $130m to $150m during the quarter after a ruling by the US court of Appeals for the Ninth Circuit in a tax case involving Xilinx.
This expense is expected to hit the company’s profit by 2 to 3 cents a share for the fourth quarter. Cisco in a filing with SEC said that the tax ruling will affect its tax position for certain years prior to fiscal 2005, even though Cisco was not named in the case.
Further, this matter will result in a reduction of approximately $310m – $320m to additional paid-in capital.
Cisco said that there will be no impact to cash flows for the fourth quarter of fiscal 2009. Additionally, the networking equipment maker does not believe this matter will have a material impact on its future results of operations, cash flows, or financial position.
