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


To: The Phoenix who wrote (45826)1/3/2001 11:09:04 AM
From: GVTucker  Read Replies (3) | Respond to of 77400
 
Phoenix, RE: but everytime CSCO uses income from operations to fund a start-up these are eanings that don't reach the bottom line. Are you assuming that this activity comes from a pool of cash?

On the contrary, every time CSCO uses income to fund a start up, these ARE earnings that reach the bottom line.

Investments in startups are NOT expensed like R&D. They are recorded as investments. The fact that this changes the asset side of the balance sheet has nothing at all to do with the income statement.