Exhibit 99.1

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited)

	Three Months Ended
	October 24, 2009		October 25, 2008
NET SALES:(1)
Product	$	7,200	$	8,635
Service		1,821		1,696
Total net sales		9,021		10,331
COST OF SALES:
Product		2,486		2,981
Service		647		669
Total cost of sales		3,133		3,650
GROSS MARGIN		5,888		6,681
OPERATING EXPENSES:
Research and development		1,224		1,406
Sales and marketing		1,995		2,283
General and administrative		440		395
Amortization of purchased intangible assets		105		112
In-process research and development		—		3
Total operating expenses		3,764		4,199
OPERATING INCOME		2,124		2,482
Interest income, net		54		195
Other income (loss), net		61		(72	)
Interest and other income, net		115		123
INCOME BEFORE PROVISION FOR INCOME TAXES		2,239		2,605
Provision for income taxes		452		404
NET INCOME	$	1,787	$	2,201
Net income per share:
Basic	$	0.31	$	0.37
Diluted	$	0.30	$	0.37
Shares used in per-share calculation:
Basic		5,767		5,881
Diluted		5,871		5,972

(1) In October 2009, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. Cisco elected to adopt this accounting guidance early on a prospective basis for transactions originating or materially modified in the first quarter of fiscal 2010. Net sales for the three months ended October 24, 2009 were approximately $50 million higher than the net sales that would have been recorded under the previous accounting guidance.

CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	October 24, 2009		July 25, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	4,774	$	5,718
Investments		30,591		29,283
Accounts receivable, net of allowance for doubtful accounts of $216 at October 24, 2009 and July 25, 2009		3,159		3,177
Inventories		1,089		1,074
Deferred tax assets		2,205		2,320
Other current assets		2,879		2,605
Total current assets		44,697		44,177
Property and equipment, net		3,976		4,043
Goodwill		12,942		12,925
Purchased intangible assets, net		1,552		1,702
Other assets		5,513		5,281
TOTAL ASSETS	$	68,680	$	68,128
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	729	$	675
Income taxes payable		97		166
Accrued compensation		2,263		2,535
Deferred revenue		6,397		6,438
Other current liabilities		3,676		3,841
Total current liabilities		13,162		13,655
Long-term debt		10,273		10,295
Income taxes payable		1,755		2,007
Deferred revenue		2,874		2,955
Other long-term liabilities		590		539
Total liabilities		28,654		29,451
Shareholders’ equity		40,026		38,677
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	68,680	$	68,128

Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three Months Ended
	October 24, 2009			October 25, 2008
Cash flows from operating activities:
Net income	$	1,787		$	2,201
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other noncash items		429			393
Share-based compensation expense		321			304
Provision for doubtful accounts		4			17
Deferred income taxes		93			26
Excess tax benefits from share-based compensation		(21	)		(17	)
In-process research and development		—			3
Net (gains) losses on investments		(47	)		70
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable		38			453
Inventories		(8	)		8
Lease receivables, net		(100	)		(65	)
Accounts payable		52			(35	)
Income taxes payable		(291	)		(83	)
Accrued compensation		(313	)		(197	)
Deferred revenue		(160	)		(2	)
Other assets		(186	)		(405	)
Other liabilities		(110	)		47
Net cash provided by operating activities		1,488			2,718
Cash flows from investing activities:
Purchases of investments		(9,537	)		(12,461	)
Proceeds from sales of investments		2,769			6,833
Proceeds from maturities of investments		5,664			3,509
Acquisition of property and equipment		(160	)		(361	)
Acquisition of businesses, net of cash and cash equivalents acquired		—			(288	)
Change in investments in privately held companies		(32	)		(11	)
Other		43			(60	)
Net cash used in investing activities		(1,253	)		(2,839	)
Cash flows from financing activities:
Issuance of common stock		634			224
Repurchase of common stock		(1,869	)		(1,002	)
Excess tax benefits from share-based compensation		21			17
Other		35			(112	)
Net cash used in financing activities		(1,179	)		(873	)
Net decrease in cash and cash equivalents		(944	)		(994	)
Cash and cash equivalents, beginning of period		5,718			5,191
Cash and cash equivalents, end of period	$	4,774		$	4,197

Certain reclassifications have been made to prior period amounts to conform to the current period’s presentation.