July 29, July 31,
2000 1999
Net gains realized
on minority
investments 344 --
Interest and other
income, net 197 93
There it is in black and white. The same quarter last year
there were ZERO investment gains needed to show profit
growth in line with revenue growth. This year it took
$344,000,000 plus an additional $104,000,000 in interest
income. That's a total of $448,000,000 for the quarter
that wasn't needed last year, but was needed this year.
Whatever accounting method you want to go with, these
numbers speak volumes as to why the reported bottom line
looked so pretty.
chic,
First, the interest income is most likely the interest earned on their cash on hand. Like I said in my post, that it is considered good business practice. Now if we are disputing that and you think it was manipulated in someway to make their numbers look better, then we are wasting each others time.
WRT minority investment, the $344 million amounts to a contribution equal to $.05 a share. That made the difference between making and not making their quarter. Now if you remember, I expressed concern re their margins. If they slip some more, I will reconsider my position in the stock. However, to point blank write off a company with the qualities and future that CSCO has over this issue, to me, is not good investing.
ted |
