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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.28+0.1%Nov 25 3:59 PM EST

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To: rkral who wrote (67195)3/5/2005 5:15:45 PM
From: RetiredNow  Read Replies (1) of 77400
 
Hi rkral,

I just did my own estimate, based on your assumption that only vested options have to be expensed, and don't think the expense would be as linear as you think. I think that if they stop all options grants in July of this year, then the quarterly expenses would be as follows over the next several years:
FY'06 = $500M per quarter ($2B off net income)
FY'07 = $400M per quarter ($1.6B off net income)
FY'08 = $300M per quarter ($1.2B off net income)
FY'09 = $200M per quarter ($0.8B off net income)
FY'10 = $100M per quarter ($0.4B off net income)
FY'11 = $0 per quarter ($0 off net income)
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