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To: alydar who wrote (48845)	5/7/2002 11:18:20 PM
From: Steve Lee	Read Replies (2) \| Respond to of 64865

Things might/probably will be getting better over the next few quarters but Cisco's report wasn't a sign of that. 1) They missed revs expectations 2) They guided lower for next quarter 3) They beat earnings by selling goods that had been written off. The cost of selling $4.8 Billion worth of goods and services this quarter, according to Cisco's pro forma accounting, was over $2.5 BILLION CHEAPER than the cost, according to Cisco's pro forma accounting, of selling a lesser amount of goods and services previously. You trust these guys?!?! Anyway, the write offs are there in the quarterly statements so no point arguing denial on this issue.

To: alydar who wrote (48845)	5/8/2002 7:21:27 AM
From: Steve Lee	Read Replies (2) \| Respond to of 64865

CSCO must be sweating about the next earnings release. Note they refused to give guidance for income. That is because they have sold their written off inventory and will have to account for the full cost of sales next time around. i.e. no bogus disappearance of $2.5 Billion in cost of product sales. Amazing how the masses buy into this BS when the evidence is right before their eyes. How many actually read the statements. I have reproduced the relevant info below and even bolded where the CSCO pro forma accounting magic has been performed: Cisco Systems, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited) Three Months Ended Nine Months Ended --------------------- --------------------- April 27, April 28, April 27, April 28, 2002 2001 2002 2001 -------- -------- -------- -------- NET SALES: Product $ 3,993 $ 4,007 $ 11,671 $ 15,982 Service 829 721 2,415 2,013 -------- -------- -------- -------- Total net sales 4,822 4,728 14,086 17,995 -------- -------- -------- -------- COST OF SALES: Product 1,515 4,131 4,608 8,563 Service 239 269 748 796 -------- -------- -------- -------- Total cost of sales 1,754 4,400 5,356 9,359 -------- -------- -------- -------- GROSS MARGIN 3,068 328 8,730 8,636