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To: afrayem onigwecher who wrote (10690)	11/5/2002 5:44:17 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

SEC Files Amended Complaint Against WorldCom To Add Additional Fraud Charge and Two Other New Charges, and Expand the Scope of the Alleged Fraud U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 17829 / November 1, 2002 Accounting and Auditing Enforcement Release No. 1658 / November 5, 2002 Securities and Exchange Commission v. WorldCom, Inc., Civil Action No. 02-CV-4963 (JSR) SEC Files Amended Complaint Against WorldCom To Add Additional Fraud Charge and Two Other New Charges, and Expand the Scope of the Alleged Fraud The Securities and Exchange Commission today filed an amended complaint against WorldCom, Inc. The amended complaint, filed in the Commission's pending civil action in federal district court in New York with WorldCom's consent, adds claims that WorldCom violated the antifraud provision of the Securities Act of 1933 (Section 17(a)), in connection with several securities offerings during the fraud, and also violated the internal controls and books and records provisions of the Securities Exchange Act of 1934 (Sections 13(b)(2)(A) and 13(b)(2)(B)). The amended complaint broadens the Commission's charges to allege that WorldCom misled investors from at least as early as 1999 through the first quarter of 2002, and further states that the company has acknowledged that during that period, as a result of undisclosed and improper accounting, WorldCom materially overstated the income it reported on its financial statements by approximately $9 billion. The Commission filed its initial complaint against WorldCom on June 26, 2002, the day after WorldCom announced that it intended to restate its financial results for five quarters-all quarters in 2001 and the first quarter of 2002. (Litigation Release No. 17588.) The initial complaint charged WorldCom with violating various antifraud and reporting provisions of the federal securities laws, including Sections 10(b) and 13(a) of the Exchange Act and Exchange Act Rules 10b-5, 13a-1, 13a-13 and 12b-20, during those five quarters. The Commission also sought the appointment of a corporate monitor, and on July 3, U.S. District Court Judge Jed S. Rakoff appointed former Commission Chairman Richard Breeden to that position. Since the Commission filed its action against WorldCom, the company has made a series of announcements expanding its anticipated restatement in amount and time. In addition, the Commission has brought civil actions against four former employees of WorldCom. The Commission filed civil actions against former WorldCom Controller David F. Myers on September 26 (Litigation Release No. 17753); former WorldCom Director of General Accounting Buford "Buddy" Yates, Jr., on October 7 (Litigation Release No. 17771); and Betty L. Vinson and Troy M. Normand, former accountants in the WorldCom's General Accounting Department, on October 10 (Litigation Release No. 17783). All of these actions are still pending. The Commission acknowledges the assistance and cooperation of the U.S. Attorney's Office for the Southern District of New York, and the Federal Bureau of Investigation. The Commission's investigation into matters related to WorldCom's financial fraud is continuing. SEC Complaint in this matter sec.gov

To: afrayem onigwecher who wrote (10690)	11/6/2002 10:33:42 PM
From: StockDung	Respond to of 19428

Tokyo stocks down on Cisco outlook, Sony soft TOKYO, Nov 7 (Reuters) - Tokyo stocks dipped by midsession on Thursday after a cautious outlook from technology bellwether Cisco Systems Inc <CSCO.O> sent Nasdaq futures lower, raising concerns Wall Street's recent rally had come to an end. Sony Corp <6758.T>, the world's largest consumer electronics maker, fell 3.11 percent to 5,290 yen, helping push the Nikkei average <.N225> down 0.67 percent to 8,893.32, reversing course after climbing more than three percent in a three-day run. On Wednesday, the U.S. Nasdaq index <.IXIC> posted a sixth straight day of gains after the Federal Reserve cut key short-term interest rates by a larger-than-expected 50 basis points, and a sweeping Republican win in mid-term U.S. elections. "The market was focused on three main events this week -- the Fed, the elections, and Cisco. Now all the news is out there and it looks like the Nasdaq will pull back from recent gains," said Tsuyoshi Segawa, an equity strategist at Shinko Securities. Cisco, the top maker of equipment used to run the Internet, posted earnings of a better-than-expected 14 cents per share for the first quarter, but said sales in the current quarter might fall on weak spending by its customers. As a result, Nasdaq futures <NDZ2> were down 0.9 percent. NTT DoCoMo Inc <9437.T> fell 0.41 percent to 240,000 yen after company sources told Reuters that Japan's top wireless operator is set to post a 96 percent fall in first-half group net profit to around four billion yen ($32.9 million) after the close. Starbucks Coffee Japan Ltd <2712.OJ> was ask-only at 18,200 yen, 14 percent below Wednesday's close after which the unit of U.S. Starbucks Corp <SBUX.O> cut its full-year forecast to a net loss of 500 million yen on slumping sales. ($1=121.63 yen) 11/06/02 21:23 ET

To: afrayem onigwecher who wrote (10690)	11/6/2002 10:35:40 PM
From: StockDung	Read Replies (1) \| Respond to of 19428

Cisco loses stock gains on outlook By Chris Kraeuter, CBS.MarketWatch.com Last Update: 6:36 PM ET Nov. 6, 2002 SAN JOSE, Calif. (CBS.MW) -- Cisco Systems reported a better-than-expected quarterly profit Wednesday but forecast that sales will be flat to down 4 percent this quarter, sending its shares lower after hours. "I think it's a macroeconomic issue rather than a Cisco-specific issue," said Aalok Shah, analyst with Pacific Crest Securities. "If you are worried about what they said, you should be worried about the entire stock market." Indeed, technology stocks turned lower after Cisco announced its outlook for the second quarter. Nonetheless, Shah said Cisco performed well given the environment and that its results could have been worse. Cisco (CSCO: news, chart) shares fell 2 percent to $12.69 on Island ECN. After Cisco announced first-quarter results but before it laid out second-quarter targets, shares rose as much as 5 percent. "From an external perspective, our customers are more cautious and their visibility continues to contract," said Chief Executive John Chambers during a conference call, adding that his financial targets are on the cautious side. Despite the concern, Technology Business Research's Bill Lesieur noted that Cisco's revenue base in networking equipment is intact and its margins have expanded while competitors are struggling to survive. "Cisco's long-time competencies in managing both costs and expenses, while maintaining a strong balance sheet, is proving to be exceptionally valuable during the industry downturn," said Lesieur. For the quarter ended in October, Cisco earned $618 million, or 8 cents a share, on revenue of $4.84 billion. Excluding a $412 million write-down of equity investments, Cisco earned $1 billion, or 14 cents a share, which is a penny better than analysts expected. At the beginning of the quarter, Cisco said it expected sales to be flat or slightly higher than the $4.8 billion it reported during the fourth quarter. The company provided no bottom-line target. During the same quarter last year, Cisco lost $268 million, or 4 cents a share, on sales of $4.45 billion. Excluding charges, Cisco earned 4 cents a share. Product sales accounted for 83 percent of total revenue while service sales of $832 million accounted for the remainder of the revenue base. Gross margins for the quarter rose to 69.3 percent compared with 67.7 percent in the previous quarter and 54 percent in the first quarter last year. Chief Financial Officer Larry Carter attributed the boost to lower component costs and a reduction in inventory provisions. Headcount declined by 288 to 35,278. For the second quarter, Cisco said its sales could be flat or down as much as 4 percent sequentially, which would result in sales as low as $4.6 billion. Chambers said customers were more cautious during September as they became concerned about the direction of the economy and their own businesses. "Our revenue will grow only meaningfully as our customers' revenue and profits improve," he said. Gross margins are expected to be 66 to 68 percent and operating expenses are targeted to fall slightly. As usual, Cisco did not provide a target for its earnings. Analysts had expected earnings of 13 cents a share on sales of $4.9 billion, on average, according to Thomson First Call. Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.