Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (70491)	11/13/1999 11:41:00 AM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

Wayne, The reason they can't expense research costs is because research conducted for several years would all be expensed in the takeover quarter, which wouldn't produce an accurate approximation of quarterly operating earnings. But, the way they do it now is to write it all off in one quarter, but pretend that the operating income without these expenses is the correct number. Thus, Cisco shows a big up number that way, in the headlines, but a down quarter fully expensed. I don't think either is a fair approximation of what they did, and it does make a big difference in the case of Cisco, which is always doing takeovers to puff up their revenues and operating income.