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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.35

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12:53 PM EST

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To: RetiredNow who wrote (57225)	2/7/2002 9:44:27 AM
From: GVTucker	Read Replies (2) of 77400

mindmeld, RE: Every quarter, they recognize some deferred revenue. That's just a regular part of the business. So if you start pulling deferred revenue out every quarter, then you are misstating the picture. It's like saying I'm only going to give you credit for sales that you sold and booked this quarter. Sheesh, you're missing the point. Most quarters this is a contra-revenue item. It normally lowers revenues and provides some cushion to future revenues. Yes, they recognize some deferred revenue, but they usually book even more to be recognized in the future. In this quarter, this line item was a positive number, which is unusual for Cisco. That provides much less of a cushion for future revenues. This is a big reason why Chambers was reluctant to give a forward looking forecast, because his visibility is not as good as it usually is, and he doesn't have the cushion that he normally does.

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