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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (19382)	5/30/2002 11:49:28 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

Why bother with annual reports? Analysts concerned about Cisco's finances By Reuters staff 30 May 2002 Question whether company has enough set aside against doubtful accounts. Shares of Cisco Systems Inc., the No. 1 maker of equipment that directs Internet traffic, fell more than the broader Nasdaq market and its peers on Wednesday after a Merrill Lynch analyst raised concerns about the company's reserves in case customers do not pay. Cisco shares closed off 73 cents, or 4.46 percent, at $15.65 on the Nasdaq. The overall Nasdaq market finished off 1.68 percent, while the American Stock Exchange Network Index closed down 1.81 percent. Also on Wednesday, Dresdner Kleinwort Wasserstein analyst Ariane Mahler downgraded her rating on the stock to "sell" from "hold," citing questions about Cisco's gross profit margins, stock option compensation and off-balance sheet commitments. Merrill Lynch analyst Samuel Wilson raised a "yellow flag" on Cisco's allowance for doubtful accounts, which has risen to its highest levels ever both in absolute dollars and as a percentage of gross receivables. He cited figures based on the company's quarterly documents filed with the U.S. Securities and Exchange Commission late on Tuesday. totaltele.com