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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (39277)	8/10/2000 11:25:39 AM
From: M. Charles Swope	Read Replies (1) \| Respond to of 77400

"Bulls--given that acquisitions ARE a part of Cisco's long term strategy, why is it logical in your minds to take out acquisition costs when looking at Cisco's long term growth?" Perhaps some of the self-proclaimed accountants on the thread can give a better answer but let me give mine. Even though there are likely to be acquisition costs most years, the particular acquisition costs on any quarter's income statement are nonrecurring. Each acquisition is unique. Cisco will only acquire Cerent once. It's not like buying the same kind of electrical connector every time you build a router. Also, the acquisition costs are incurred for the purpose of acquiring a stream of income from the acquired business that, with any luck, will flow for many years. Attributing that cost to a particular quarter would be distorting. There, how's that? Charlie