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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.16+0.2%Dec 26 9:30 AM EST

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To: rkral who wrote (65442)5/12/2004 2:29:55 PM
From: Stock Farmer  Read Replies (1) of 77400
 
Hi Ron.

Takin' a break from makin' money so I've got some time to post.

Tell me, how did you calculate the variance in recognition rate.

Simple... take 3,420 current portion of deferred revenue and assume recognized equally over the period (one year). That makes 9.4 M$/day through 365 days. 7 days @ 9.4 M$/day is about 71 M$. Presto.

Strictly speaking however, this is pre-tax, so would be about 10 days variance to make an after tax impact of $0.01/sh.

The point isn't to be precise to the penny (I'm neither a CFO nor an accountant), just to show that there's a lot opportunity for a qualified financial engineer to be tinkering with.

Cheers,
John
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