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

To: Stock Farmer who wrote (57460)	2/11/2002 2:00:33 PM
From: RetiredNow	Read Replies (3) \| Respond to of 77400

Maybe the change in accounting was to Cisco's benefit, but it doesn't matter. The point is that to stay GAAP, Cisco had to change. So the underlying assertion that Cisco is playing games to make their numbers look better is patently false. They change when they are required to change by GAAP and they change when Wall Street bitches that they need more info, thus the recent announcement also talking about GAAP income too. As far as the comparison to Nortel or JDSU, this is also not a fair comparison. Both those companies did nothing but purchase acquisitions in the bubble years, so they had more to writeoff. Instead, Cisco did pooling, which means that very little of the bubble valuations were ever recorded, so there wasn't a need to write them off. Instead, you have the bubble valuations imbedded in a huge o/s share number and a lower retained earnings number. As far as goodwill still being at bubble levels, I'd say you are wrong. They would have written it down had their been a substantial impairment to the acquisitions using purchase accounting during the bubble years. The proof is that in their big bath a couple of quarters ago, they wrote off entire acquisitions like Pixstream.