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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.11+0.9%Nov 21 9:30 AM EST

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To: The Phoenix who wrote (40143)9/27/2000 12:26:59 PM
From: RetiredNow  Read Replies (1) of 77400
 
I know. He is not making sense. For all of you wondering what will happen to Cisco once they use purchase accounting, here's a good view of the future. Take a look at JDSU. They use purchase accounting and their stock isn't suffering. My conclusion is that analyst are backing out the amortization numbers to get apples to apples comparisons. In addition, they are looking at the huge cash flows that JDSU generates. The same will be true for Cisco.

As far as tax consequences, there are none. Cisco will still get the tax benefits of their employees excersiing their options (generating options expense for Cisco on their tax returns), because that tax policy is not slated to change just yet.
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