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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: Stock Farmer who wrote (63637)4/19/2003 8:41:42 PM
From: Lizzie Tudor  Read Replies (2) of 77399
 
with 7 Billion in profits they somehow managed to have 21 Billions in the bank. Or in other words, they somehow came up with 14 Billion more than they earned!!!

How about you use some of the obvious intelligence it takes to be a software lead and answer the question, "where did the other 14 Billion come from?"


I looked at cash generated for the past 10 years awhile back, and came up with substantially more than 7 billion. Thats what we are talking about, are we not? Cash, I mean. Cisco generated 1.3 billion in cash the last quarter if I remember correctly (I am not going to bother to look), and last year was routinely hitting the 2 billion figure for cash generated per quarter. The last few quarters generated more than your 7 billion.

How about you use some of the obvious intelligence it takes to be a software lead and answer the question, "where did the other 14 Billion come from?"

Right back at ya- How about you tell me why cash is so much better than earnings (assuming your 7 billion figure is correct) and which is more relevant? BTW I thought cisco had earnings of around 750mm- one billion per quarter also, and had been doing so for the last few years which is also more than 7 billion.

BTW I definitely accept the fact that some of Cisco's cash on hand comes from options exercises. No doubt that is true, except that most of that benefit happened long ago, 98/99 timeframe. It doesn't make them any less viable as a cash flow machine, though.
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