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

To: Qualified Opinion who wrote (57443)	2/9/2002 3:09:25 PM
From: rkral	Read Replies (1) \| Respond to of 77400

robgera, is this a good thing OR a bad thing? benefit from reversal of the inventory write off on GAAP Earnings was around $672 million, after taxes, in the last three quarters Secondly, the effect of this "benefit" was to decrease the GAAP cost of sales (re pro forma cost of sales) by an identical amount .. so how do you conclude it is an after tax amount? TIA Ron

To: Qualified Opinion who wrote (57443)	2/9/2002 3:15:34 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

OK. But the thing that people were bitching about was whether the inventory was actually used or not. And it was right there in the 10Q and 10K for everyone to see. The majority of it was disposed of, not used as normal inventory would have been. Which means that they took losses on that inventory. So the benefit that accrued was actually only a partial recovery of the charge they took a couple of quarters back. It's all very conservative accounting.