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

To: Dave who wrote (47528)	1/30/2001 12:48:32 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 77400

I agree. That doesn't make it any less relevant. I am an ex-Cisco employee and I can tell you that the options are a very important part of the equation. But it is more than that, Cisco treats their employees very well. This creates a tremendous amount of loyalty. I will always carry a little bit of Cisco inside...Just call me Jorjie Ciscoseed, spreading the Cisco culture wherever I land.

To: Dave who wrote (47528)	1/30/2001 4:07:32 PM
From: M. Charles Swope	Respond to of 77400

Dave, Exercize of stock options is treated by the IRS as compensation and creates a tax deduction for CSCO without it having to expend any cash. Therefore, it increases cash flow. This shows up on the "operations" part of the cash flow statement. This treatment is subject to a good deal of criticism as it doesn't look like it's really related to the company's "operations." Bambs has pointed this out many times and the January 22, 2001 issue of Business Week has an excellent piece on cash flow issues generally and the stock option issue specifically. Charlie