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

To: larry who wrote (60254)	7/12/2002 8:35:59 AM
From: RetiredNow	Read Replies (4) \| Respond to of 77400

HI Larry, go to the cash flow statement in the latest 10Q. siliconinvestor.com You'll see that for the 9 months ended April 2002, Cisco experienced a total tax benefit from exercise of stock options of $51 million. Now Net Income for the same period of time was $1,121 million. So the total percent lower that earnings would have been for that period would have been 4.5%, not 67%. You see, if they passed the stock options expense law, then what they would deduct from the income statement is the amount of tax benefit that accrues to the company from the exercise of stock options. Anyway, I didn't look at Cisco's FY01, but I wouldn't be surprised if the stock options expense was a lot higher back then. Now the expense is really low since Cisco is giving out options that aren't worth the paper they are printed on. I think last I checked the weighted average price of options was $22. The stock now trades at $14 or so. Like I said...worthless.