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To: Sector Investor who wrote (38937)	5/9/2002 1:41:55 AM
From: bob zagorin	Read Replies (1) \| Respond to of 42804

that's almost enron-like --- write it off on a non-operating one time charge and then add the income from the sale of those goods on the I&E. i don't think cisco would do that but you never know...

To: Sector Investor who wrote (38937)	5/9/2002 1:44:19 AM
From: akmike	Respond to of 42804

Hi Sector, I think they wrote off 2.2 bil. but as I said they are under a microscope and they have had to disclose the effect of selling this "costless inventory" each quarter since. I think the impact this quarter was 37 mil. and Chambers announced that this is the last report since it is no longer meaningful.

To: Sector Investor who wrote (38937)	5/9/2002 8:07:17 AM
From: David Semoreson	Read Replies (1) \| Respond to of 42804

last year's inventory write off was $2.7 BILLION They didn't trash it and now they say its effect is both trivial and completed? check these strange looking details .... 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