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

To: t2 who wrote (51461)	4/16/2001 4:31:36 PM
From: GVTucker	Read Replies (2) \| Respond to of 77398

No, nobody is surprised that CSCO warned. Everyone will be surprised at the extent of the warning. The low end of analyst estimates was a 20% sequential decline in revenues and 5¢ in earnings. They won't come close to the low end, contrary to what you say. In addition, the write offs are far larger than anyone imagined. To show how out of control CSCO's balance sheet has gotten, they're writing of $2.5 billion of inventory. The most recent quarter shows that CSCO had TOTAL net inventory of $2.533 billion. In addition, I find it almost comical that CSCO is going to fund a company called Velocita to the tune of $485mm, in exchange for Velocita buying $225mm of CSCO equipment.