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

To: Drew who wrote (55439)	9/19/2001 9:31:40 AM
From: GVTucker	Read Replies (4) \| Respond to of 77400

I did run across something CSCO related yesterday. Most people on this thread recall the $2 billion plus write off CSCO took a little while ago, primarily for inventory that was obsolete. Some people speculated at the time that CSCO would use some of that inventory later on in subsequent fiscal quarters to artificially boost both earnings and margins. Cisco management, in an effort to dissuade such talk, stated (via CFO Larry Carter) that the unused inventory would be destroyed, thereby eliminating any possibility of such accounting shenanigans. Last week, David Dreman (who, by the way, is a long-only buy side manager) stated that CSCO boosted margins for the most recent quarter by using $187mm worth of this inventory that had previously been written off. To me, Dreman was basically saying that CSCO management had lied to the investment community, a pretty serious charge. The 10-K for the fiscal year ended July '01 won't be released for a little while. Can anyone confirm or deny Mr. Dreman's statement?