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

To: Dave who wrote (51603)	4/17/2001 7:03:50 AM
From: elmatador	Respond to of 77400

I need help here: CSCO had an annual load for the factories to produce. Then the floor collapse under CSCO feet. What happens to all those boxes full of components on the warehouse, at outsourced manufacturers or just about to be delivered? What happens with the physical components? Are they sold on the spot market? or are they dumped away? I believe they are not going to use the components to build equipment for which they were ordered. Say they will not manufacture ADSL products or fixed wireless products because the market for these products are gone. Of course there are lots of products that are still doing well and there are the dogs which CSCO have to get rid off. It would be interesting to -specifically- know who are the dogs. And who are the products that will pull out CSCO of the dive.

To: Dave who wrote (51603)	4/17/2001 2:15:01 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 77400

re: "Although, they paid for the inventory with cash, writing 2.5B of inventory off the books isn't a cash charge." There is a lot about accounting I don't understand. Is this correct: the 0.8-1.2B for restructuring is a cost they haven't paid yet, and the money for that has to come out of: 1. future cash flow, or 2. cash and investments (=past cash flow that they have saved), or 3. borrowing (fortunately, they haven't started doing this) The 2.5B in inventory write-off is a cost they have or haven't already paid? Does it matter whether the inventory is with CSCO or CSCO's suppliers? The provisions for bad debt is money they haven't paid, and won't have to pay until the debts are actually written off? They just move the money out of the "profit" catagory, and put it into "bad debt provision" catagory, and leave it there till the debts are paid or defaulted? TIA.