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

To: GVTucker who wrote (55440)	9/19/2001 9:57:00 AM
From: Stock Farmer	Respond to of 77400

Hi GV, I'll try to dig up the links, but I think Chambers issued a statement to the effect that it was to be sequestered, and that if any use was made in the future then it would be accounted for separately. In the recent pro-forma there is an adjustment for the use of inventory in the amount of (187) under the heading "Excess Inventory Charge", which depressed pro-forma earnings by about $0.02/share. Without that, GAAP earnings would have been negative. I think I commented about that at the time, at least thinking that Cisco only needed to plan to burn about 200 M$ worth of inventory per quarter and then NOT do it in order to have a nicely manageable cushion on earnings for the forseeable future. John.

To: GVTucker who wrote (55440)	9/19/2001 10:10:11 AM
From: kvkkc1	Read Replies (2) \| Respond to of 77400

I'd like to see your link where Carter said they were going to destroy the written off inventory. You're mention was the first I had heard of it.knc

To: GVTucker who wrote (55440)	9/19/2001 10:15:10 AM
From: Rene Debets	Read Replies (1) \| Respond to of 77400

Viasystems here in the Netherlands makes printed circuit boards for Cisco equipment and just announced that they will lay off a quarter of their workforce because there was no improvement in the order status. A couple of months ago they already sent people on mandatory vacation, then a lay off of the temp workers followed and now they start to lay off the permanent employees. Given the trouble you have to go through to lay off people here in the Netherlands, this is a drastic step. Regards, Rene

To: GVTucker who wrote (55440)	9/19/2001 12:27:54 PM
From: RetiredNow	Respond to of 77400

Hey GV, there is no manipulation going on. There is nothing illegal or manipulative about using some of that inventory that was written off. All they have to do is reverse the write off for that portion of inventory that they used. So it will be properly reflected in the books. In addition, Larry Carter stated very specifically that if they did use some of that inventory, they would make sure proforma income did include the benefits of those reversals, so that we would have a basis for comparable number. So Cisco management is on the up and up. Nothing illegal or even shady is going on. My opinion is that those analysts don't really understand accounting and assume the worst in most cases. I agree with assuming the worst, as that's a safe way to go, but for confirmation all you have to do is check their financial statements and you'll have all the info you need. The accounting rules around this are very clear.