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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 72.34-2.9%Nov 4 3:59 PM EST

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To: JC Reddy who wrote (21915)2/3/1999 9:10:00 PM
From: Mark Peterson CPA  Read Replies (1) of 77397
 
Thank you for your contribution to the CSCO thread. It was very illuminating but puzzling at the same time too.

The practice of expensing normal and customary business expenses has been adopted by all publicly traded companies. The practice of excluding non-recurring acquisition or R&D write offs from primary EPS computations has also been adopted by the majority of publicly traded companies who have a purist sort of view towards their balance sheets: believing that "soft" assets should be expensed instead of capitalized. I'm not so sure I disagree.

Of course, the story all analysts believe is that it is proper to exclude these non-recurring, one-time charges in EPS computations. The puzzling part, of course, is that in somewhat circular fashion, because of their frequency, these charges should be more properly classified as "Recurring non-recurring one-time charges".

Mark A. Peterson
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