CSCO must be sweating about the next earnings release. Note they refused to give guidance for income. That is because they have sold their written off inventory and will have to account for the full cost of sales next time around.
i.e. no bogus disappearance of $2.5 Billion in cost of product sales. Amazing how the masses buy into this BS when the evidence is right before their eyes. How many actually read the statements. I have reproduced the relevant info below and even bolded where the CSCO pro forma accounting magic has been performed:
Cisco Systems, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per-share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
--------------------- ---------------------
April 27, April 28, April 27, April 28,
2002 2001 2002 2001
-------- -------- -------- --------
NET SALES:
Product $ 3,993 $ 4,007 $ 11,671 $ 15,982
Service 829 721 2,415 2,013
-------- -------- -------- --------
Total net sales 4,822 4,728 14,086 17,995
-------- -------- -------- --------
COST OF SALES:
Product 1,515 4,131 4,608 8,563
Service 239 269 748 796
-------- -------- -------- --------
Total cost
of sales 1,754 4,400 5,356 9,359
-------- -------- -------- --------
GROSS MARGIN 3,068 328 8,730 8,636
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