SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.94+1.1%Nov 28 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Don Sandstrom who wrote (11009)12/16/1997 10:48:00 PM
From: Zoltan!  Read Replies (1) of 77400
 
The FOOL Clears Up Cisco 10Q - "really sloppy analysis" or "actual misrepresentation"?:

A Cisco spokesperson cleared up the inventory non-issue: the buildup was intentional and represents a stocking of lower-end communications items for anticipated sales. Since Cisco doesn't record revenues until products are actually sold, the inventory build-up had no impact on reported revenues for the most recent quarter.

Beyond that, the hyping of "concerns" about inventories appears to me to have been either an intentional misrepresentation of the facts or else some really sloppy analysis.

First of all -- and as pointed out in Cisco's last quarterly conference call -- the value of Cisco's total inventory declined last quarter. Declined The value of the finished goods component increased somewhat, but the value of components and unfinished products more than offset that increase.

Second, the reports I saw warned that Cisco's finished goods inventory
"swelled" sequentially by an apparently substantial percentage. What they neglected to point out was that although the increase was large in percentage terms, it was pretty small potatoes in absolute dollars -- about $48 million, as compared with Cisco's total cost of sales last quarter of $652 million.
fool.com

They also discuss the other nonevent, insider sales.

Regards
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News