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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (27887)	8/18/2000 8:14:47 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 42787

I didn't have time to do the comparative quarter over quarter but I did throw a quickie together from just the latest 10Q. I can't find my notes from a couple months ago but I just did a quickie to see what had that engrained in my mind and here are the numbers that I noticed were not stellar. Note I only had a few minutes to throw this together. Sales were 4919 vs 2059 or up about 55% while Sales costs were 1748 vs 1112 or up 57%. R&D expenses were 719 vs 433 or up 66%. Amortization were 51 vs 19 or up over 68% and while there was no comparitive In process R&D, the annual rate was 912 vs 390 or 133%. So much for economies of scale. Three Months Ended Nine Months Ended -------------------- ---------------- April 29, May 1, April 29, May 1, 2000 1999 2000 1999 -------------------- ---------------- ----- Total operating expenses 2,427 1,202 up 101% quarterly 6,047 3,581 up 68% annually ------- ---- --- ------- ------- Operating income 744 857 down 14% quarterly 2,465 2,036 or up 21% annually Basically all thier expenses are rising faster than their incomes from selling networking equipment. The are over coming these shortfalls via writing off merger expenses and investments gains from the stock market and financing. Investments 10,419 7,032 Note how this number is almost larger than annual sales Cash flows from financing activities: Issuance of common stock 1,005 675 Net cash provided by financing activities 1,003 680 Also their float of shares increased 300 million shares which makes growth even harder to sustain. Shares used in per-share calculation--basic 6,944 6,624 6,892 6,543 ======= ======= ======= ======= Shares used in per-share calculation--diluted 7,450 7,054 7,366 6,955 Also what is this?? Other accrued liabilities 2,588 1,353 or a 91% increase !?! Also note they deferred 915 million in taxes. I am using the latest 10Q from free edgar at freeedgar.com; Year=00&SECIndex=3345&Extension=.tst&PathFlag=0&TextFileSize=120140&SFType=& SDFiled=&DateFiled=6/13/2000&SourcePage=FilingsResults&UseFrame=1&OEMSource= &FormType=10-Q&CompanyName=CISCO+SYSTEMS+INC