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To: DukeCrow who wrote (9589)	8/9/2000 9:48:01 AM
From: Perspective	Read Replies (1) \| Respond to of 436258

I believe I am being accurate. I did not look at all the adjustments they made to the numbers for WS benefit. I just looked at the _real_ earnings release: Message 14182972 Granted, I haven't checked this against Cisco's own site, but I trust that Haim copied the results correctly. I noticed that they had $169M amortization and $461 purchased R&D, totaling $630M. I also noticed they had $344M gains on investments and $197M interest and other income, totaling $541M. I concluded that the gains and charges virtually offset each other, and that the $0.11 number was therefore valid. They are stretching the number upward by continuing to include "interest and other income" which I throw out because they should be judged on their operating income. Nobody in their right mind would pay a 150PE for a company that issued stock and bought short-term interest bearing securities. They are also pitching the payroll tax, which is BS because that is a very real expense to the company and shareholders. And they pitch the "acquisition-related costs" which is ridiculous, since it's clearly the way that they do business. It would be like an investment company trying to claim that its research arm was an "acquisition-related cost" - that's part of being in the fund business. No, $0.11 is closer to the truth. However, the real truth is that shareholders realize no earnings whatsoever because they paid out so much in stock option gains. BC