This excerpt taken from the CSCO 10-K filed Sep 11, 2009.
During fiscal 2009, we realigned our resources to reduce expenses in response to the macroeconomic environment while maintaining the focus on our priorities. Operating expenses in fiscal 2009 decreased in absolute dollars, but increased as a percentage of revenue, compared with fiscal 2008. The decrease in absolute dollars was attributable to lower discretionary expenses, lower variable compensation expenses, lower acquisition-related compensation expenses, and favorable foreign currency exchange rates. During the second half of fiscal 2009, we offered an enhanced early retirement program to eligible employees and also undertook limited workforce reduction actions, which increased our operating expenses.
This excerpt taken from the CSCO 10-Q filed May 20, 2009.
Operating expenses in the third quarter and the first nine months of fiscal 2009 decreased in absolute dollars, but increased as a percentage of revenue, compared with the corresponding periods of fiscal 2008. For the third quarter of fiscal 2009, lower headcount-related and discretionary expenses, as well as lower acquisition-related milestone payments, contributed to the decrease in absolute dollars. For the first nine months of fiscal 2009, operating expenses were relatively flat compared with the corresponding period of fiscal 2008. During the third quarter of fiscal 2009, we continued to realign resources to better focus on our priorities as well as to reduce our operating expenses, as part of our strategy to address the global economic downturn. In the near term, we anticipate that despite our efforts in this area, operating expenses may continue to increase as a percentage of total revenue, as the anticipated cost savings may not keep pace with expected revenue declines.