Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bocor who wrote (57200)	2/7/2002 7:51:37 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

A few thoughts.... First, although revenues were up 8.3% sequentially, revenues ex revenues adjustments and deferrals were down 1.6% sequentially. There's a lot of focus on the quality of the revenue growth (or a lack thereof) and that's the biggest reason for the sell off. Specifically, sales deferrals have been about negative $350mm the last two quarters. For this quarter, they were a positive $48mm. Also, about $200mm of revenue was booked on contingent contracts that related to products shipped earlier. Without question the biggest positive number isn't the earnings, or the fact that pro forma earnings matched GAAP earnings. The biggest positive is the balance sheet. There was a two quarter advance notice in the decline in Cisco in the balance sheet a couple of years ago. The balance sheet deteriorated and the income statement held together--for a little while. The balance sheet looked great for this quarter. A/R and inventory going in the right direction, solid cash flow.