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

To: Stock Farmer who wrote (57461)	2/11/2002 3:26:45 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Hi John, what I meant by that statement was that management said that $2.2 billion was going to be written off, which means we'd see pennies on the dollar if anything from it. Many posters were then saying that Cisco was manipulating numbers by then using this inventory to build it's product and thus inflating income. I was rebutting this assertion with facts. Of the $2.2 billion only about $200 million was actually used to build product with. The remainder was either scrapped, used to settle purchase commitments, or still sits on the books. So the 90% right statement means that they've only really used 10% of it, not a material amount as some posters may claim, to build product with it. So managment isn't doing anything shady here. It's all perfectly typical of inventory that is written off.