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

To: M. Charles Swope who wrote (39291)	8/10/2000 11:45:47 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Charles, RE: 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. Thanks for an intelligent answer. I agree with this statement. The problem I have is that instead of allocating the cost of the acquisition over the years that the income is accrued, Cisco instead writes off that cost up front, making this cost 'disappear' forever. Thus, the income that results from an acquisition is overstated. Take this one step further. If acquisitions over time are somewhat constant, then for any quarter it is probable that the one time write off is probably a decent estimate of what should be the write off associated with the existing income stream. That's why I think that the unadjusted net income figure is more applicable in Cisco's case.