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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.26+1.2%3:59 PM EST

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To: The Phoenix who wrote (35515)5/14/2000 1:00:00 PM
From: JRH  Read Replies (1) of 77400
 
Gary:

More info on financing that I grabbed from the CC (I reported this to my investment club who had similar concerns):

- Cisco has done about $2 billion in vendor financing, which is a combination of leases and structured loans.
- 7% of 3rd quarter revenue was from both Cisco and 3rd party financing
- 5% of 3rd quarter revenue was from Cisco financing alone
- 90% of the 5% is financing to large enterprise customers (ie Fortune 100/500 companies, most likely) and top-tier service providers (i.e. AT&T, Sprint, MCI Worldcom, etc.)
- The other 10% of the financing was to more risky companies
- Cisco has a historical loss rate on their financing of less than 1% (of course, the dot-coms don't have a problem paying right now)

Justin
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