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

To: Mick Mørmøny who wrote (58448)	3/12/2002 4:42:50 PM
From: Mick Mørmøny	Read Replies (1) \| Respond to of 77400

Overall, the disclosure changes Cisco made in this quarter's SEC filing reflected "an effort to add clarity and transparency to our statements," spokeswoman Anderson said. In a new product segment revenue breakdown, Cisco included revenue deferrals and adjustments in the totals for each segment. Some investors were confused by the old method, in which some deferrals and adjustments were included in product segment totals while others weren't. Also, for the first time, Cisco provided a quarterly update on synthetic leases related to about 8.8 million square feet of office space worth at least $1.6 billion. The leases have been disclosed in annual reports. Synthetic leases are legal and relatively common among corporations, but they have come under fire in the wake of the Enron Corp. (ENRNQ) scandal. Critics say the transactions help companies gain a tax benefit, as if they were property owners, while avoiding putting debt on their balance sheets. Cisco has pledged $1.2 billion of its investment securities as collateral. Thomas Weisel's Imam said in his note that the net benefit from the leases is only 0.2 cents of EPS a year. Analysts said the lease information was old news and immaterial. In a note, Bill Lesieur, director of industry advisory firm Technology Business Research, said the quarterly disclosure showed "Cisco clearly felt pressured to disclose any information that would be otherwise perceived as misleading to investors." Riva Richmond; Dow Jones Newswires; 2019385670; riva.richmond@dowjones.com (END) DOW JONES NEWS 031202 04:17 PM