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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: chic_hearne who wrote (41540)	10/26/2000 1:32:30 PM
From: The Phoenix	Read Replies (1) of 77400

If the merger/aquisition made sense, the accounting method wouldn't matter one bit. Think about it... Sure does. We're talking about the purchase of engineering talent and product before it's actually avaible. Cerent is a good example. The purchase price wsa $6.9B but revenues were only $10M. One year later Cerent is contrubuting hundreds of millions to Cisco's top line... and this growth is forecast to continue. So, purchase method would unfairly impact early quarter earnings and of course going forward until the purchase is written down... now mulitply this times all the early stage purchases CSCO has made.... You can't compare the acquisition of an established going concern by that of an old world going concern (using this example cuz that's where Buffet's thoughts are) against the acquisition on technology and engineering talent which assures future growth in the dynamic forming technology space.....

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