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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 71.08

+0.1%

Nov 7 9:30 AM EST

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To: faqsnlojiks who wrote (61109)	8/22/2002 6:48:27 PM
From: RetiredNow	Read Replies (1) of 77397

OK all, now I'm confused. Check this article out: lightreading.com Evidently, Cisco spun Andiamo out and now they are spinning it back in. What in the world could be the advantage to that over just structuring it as regular R&D? The only thing I can think of is if they were trying to keep huge expenses off the books, but they didn't because it states that all funding came from Cisco and all of that funding was expensed as R&D? Seems like an overly complex and paperwork intensive way to start a new product line. Just trying to understand it. Any thoughts anyone? Only serious, unbiased replies appreciated. I'm not interested in the vague, Cisco-bashing posts that some reply with. I'm more interested in a serious discussion of the merits or demerits of this type of company structuring.

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