Today there's been a very significant development for Cisco' beleaguered longtime shareholders (at least in my opinion):
I mean, it's quite a coincidence that on the day after this blog story was published, for the first time in 10 very long years, Cisco has removed from registration with the U.S. Securities and Exchange Commission; 373,695 shares of Cisco common stock that had been offered to Cisco employees pursuant to employee benefit plans (SEC Form S-8 POS page 22).
"In the third quarter, we returned approximately $1 billion in cash to our shareholders through our stock repurchases and dividend payments.
"During Q3, we repurchased $550 million of common stock under the stock repurchase program or 27 million shares at an average price of $20.28 per share.
"A dividend payment of $432 million, representing $0.08 per share, was also declared and paid during the quarter.
"As we have stated previously, our capital allocation strategy remains committed to returning cash to our shareholders through a combination of dividends and our share repurchase program."
So we've got Cisco CFO Frank Calderoni gushing that during Q3'FY12 Cisco returned approximately $1 billion in cash to shareholders, but only $432 million was dividends while the rest of the cash, $550 million, was used to repurchase Cisco stock.
I've got to admit, I just don't get it.
I mean, if Cisco returned $550 million in cash during Q3'FY12 to shareholders by repurchasing 27 million shares, how could Cisco's common stock shares issued and outstanding during Q3'FY12 increase by +5 million shares?
Furthermore, how could Cisco's shares used in its per-share basic calculation during Q3'FY12 increase by +20 million shares?
Finally, how could Cisco's shares used in its per-share diluted calculation during Q3'FY12 increase by +55 million shares?
Well, it's quite possible that I might have found at least one of the culprits based on Cisco's most recent Form 10-Q (page 37) filed on May 23, 2012 and previous Form 10-Q (page 34) filed on February 21, 2012:
Total number of in-the-money Cisco employee stock options exercisable*