Arista Networks to revise Q2 GAAP results for $405M settlement charge
As a result of the legal agreement with Cisco Systems (CSCO), Arista Networks will revise its Q2 GAAP financial results. The company will record a legal settlement charge of $405M to operating expenses, which includes legal fees associated with the settlement, and a reduction of $99M to its provision for income taxes, resulting in a revised GAAP net loss for the quarter of $155.3M. In addition, Arista will record an increase of $405M in total current liabilities, an increase of $85M in prepaid expenses and other current assets, and an increase of $14M in deferred tax assets. These adjustments do not impact the company's non-GAAP financial results, given its practice of excluding costs related to the Cisco and OptumSoft lawsuits from its non-GAAP results.