SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.26+1.2%Jan 15 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GVTucker who wrote (39277)8/10/2000 11:25:39 AM
From: M. Charles Swope  Read Replies (1) of 77400
 
"Bulls--given that acquisitions ARE a part of Cisco's long term strategy, why is it logical in your minds to take out acquisition costs when looking at Cisco's long term growth?"

Perhaps some of the self-proclaimed accountants on the thread can give a better answer but let me give mine. Even though there are likely to be acquisition costs most years, the particular acquisition costs on any quarter's income statement are nonrecurring. Each acquisition is unique. Cisco will only acquire Cerent once. It's not like buying the same kind of electrical connector every time you build a router.

Also, the acquisition costs are incurred for the purpose of acquiring a stream of income from the acquired business that, with any luck, will flow for many years. Attributing that cost to a particular quarter would be distorting.

There, how's that?

Charlie
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News