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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 78.03

+0.8%

Nov 14 9:30 AM EST

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To: Jacob Snyder who wrote (51657)	4/17/2001 2:30:52 PM
From: RetiredNow	Read Replies (2) of 77399

It's a combination. For instance, the severance charges will be booked as a debit to severance charge expenses and a credit to severance liability. Then when the liability is paid they debit the liability and credit cash. I imagine the majority of cash out the door will occur over the next month or two. But for inventories, most of that cash might have already been paid, unless they have significant forward contracts. In otherwords, they may be obligated to buy a certain quantity of components over the next year or so, regardless of whether or not they can use them. That means that cash will continue to go out the door over the next year, but won't be converted into sellable finished goods, so it will kill their margins. Lot's of other examples, but you get the picture. There are too many variables to really know the cash flow impact until we see the 10Q.

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