Biznews, August 3, 2001:
CISCO BEATS EXPECTATIONS BY A PENNY:
Today, Cisco came in with pro forma losses of 0.68 this quarter, one penny better than recently reduced estimates. Over the last month, CEO Chambers has made numerous public statements saying he expects the world to end soon. These pro forma earnings do not include one-time charges of 7.3 billion for inventory writedowns, reserves for bad debts, employee wages and benefits, raw materials, and R&D.
In a related development, the company announced that suppliers of components for Cisco would, going forward, be paid in options for Cisco stock, rather than in cash. A spokesman said, "We consider this a logical extension of our employee stock option program. This will align the interests of our entire supply chain with Cisco, ensuring that everyone is pulling together for the same goals. In addition, we expect this change to have a positive effect on our cash flow situation." |
