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Strategies & Market Trends : Sharck Soup
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To: Sharck who started this subject5/8/2001 4:50:48 PM
From: Softechie   of 37746
 
4:47 (Dow Jones) So how did Cisco Systems (CSCO) beat estimates for its 3Q?
Here's one way: the company cut its research and development expenses, quarter
over quarter, for the first time in at least four years. Hard to believe a
high-tech company would do that - it's essentially borrowing from its future,
since R&D spending is where you get the new products on which your future
depends. But Cisco did it: R&D spending for the fiscal 3Q was $970 million,
down 1.1% from the previous quarter's $981 million, although it's still up
substantially from $717 million in the year-ago quarter. In the past four
years, Cisco has increased quarterly R&D spending sequentially by an average of
11%. (MRR)
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