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

To: Jorj X Mckie who wrote (60744)	8/6/2002 10:30:24 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77397

from my notes on the call, an analyst asked an option expense question- Arianne Maler Dresner Option expensing- why doesn't cisco do it when NT and others are volunteering now. JC- he has very strong issues with this. It is stock option governance that is the issue. What are the goals of option reform- accuracy, shareholder approval, repricing, options to all? Does the reform address these issues? Cisco has done a good job with each of these. top 25 at cisco get less than 6% pf total options. Intc, msft are similar. Expensing alternatives are not accurate. Black Sholes technique gives 3.3 billion expense from last year. Today-141mm for the same option plan, totally inaccurate. Having said this, Cisco will put expenses in reports, cisco has no problem with this. Larry- we will be disclosing FY02 Black Sholes. Every qtr cisco will disclose Black Sholes calculations going forward.

To: Jorj X Mckie who wrote (60744)	8/6/2002 10:30:40 PM
From: t2	Read Replies (1) \| Respond to of 77397

Jorj, Cisco's good revenue numbers in the corporate IT market; that seems consistent with some comments from companies like Intel that servers were doing well and not the PC market. Is that why a company would need more routers? If corporations are about to start cutting back on spending once again (a double dip?), then Cisco has problems. However, how would you factor in the possibility of even further cuts in short term interest rates for Cisco's valuations...so they make 10cents a quarter for a year..before the uptick. Is that valuation really that bad given how low interest rates are..and how low they are likely to become (short term rates)? In that kind of bad environment, their competitive position is going to continue getting better. I don't know if it was MSFT or some other company that stated that their best business environments are when economy turns down. Just look at Microsoft for example...the competitive threats starting disappearing with the bursting of the dot.com bubble. thanks. btw--I am assuming that Cisco will not have to write down inventory the way they did recently....being cautious is likely to help prevent that situation from developing in the near term..I guess.