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

To: Stock Farmer who wrote (46194)	1/6/2001 10:40:52 AM
From: kvkkc1	Read Replies (2) \| Respond to of 77400

The fallacy of your argument is that they are perfectly acceptable in including the option benefits. You could take something out of any financial statement to produce the desired effect to suit your argument. Bottom line: Are they doing something illegal or are they acting in accordance with GAAP? knc

To: Stock Farmer who wrote (46194)	1/6/2001 12:08:51 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

I do not make bold unsubstantiated negative claims. You don't? You implied that CSCO had inventory problems. The fact is (as described in clarity by CSCO at the past to earnings sessions) that CSCO built up raw matierals inventory for hard to get components. THis has been a short term drain on earnings. They have also increased R&D... in the form of "technology investments" as described in the 10K. This has also been a drain on earnings. You are simply looking at the numbers without understanding the nature of the business and why the numbers are what they are. I see no emotion in either our positions.... You say that all else being equal that CSCO would not be growing cash from operations (without options) I argue that all else being equal CSCO would indeed show signficant growth from operations. CSCO - as a customer focused going concern - are spinning funds back into the company (short term) to acquire technology to address new markets as pointed out in the 10K (this is not to be read as acquisitions and if you don't understand this point then I urge you to do so I personally can not add more to this) and to increase inventories to sheild their customers from supply constraints. Both of these factors are short term. As short term..... and if you consider "all else being equal" you would see signficant growth in cash from operations. OG