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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: Stock Farmer who wrote (65443)5/12/2004 2:44:29 PM
From: rkral  Read Replies (1) of 77400
 
John, re "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."

Believe it not, that's exactly what I did with my first calculation. Then, while congratulating myself on reproducing your result, I realized ...
1) the $71M is a net income number and $3,420M is a revenue number, so I was assuming NPM = 100%, and
2) I had no justification for assuming an annual time period for Cisco "earning" the deferred revenue .. and still don't.

Ron
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