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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (11552)	11/6/2002 4:21:27 PM
From: Techplayer	Read Replies (2) \| Respond to of 57110

AW, Must have been...the spin is in, but read between the lines. During the first quarter of fiscal 2003, Cisco recorded a non-cash $412 million impairment charge on certain publicly held equity securities in its investments portfolio. Cisco has excluded the impairment charge, and the related tax benefit, from pro forma earnings. This treatment is similar to the reporting of a non-cash $858 million impairment charge on certain publicly held equity securities recorded during the first quarter of fiscal 2002. Cisco reflects publicly held equity securities at current market value on its balance sheet and the accounting rules require that once a decline in value is judged tobe other than temporary, the company must record a charge to earnings. Cash flows from operations were $1.1 billion for the first quarter of fiscal 2003 compared with $1.6 billion for the fourth quarter of fiscal 2002. Cash and cash equivalents and total investments were $21.2 billion at the end of the first quarter of fiscal 2003 compared with $21.5 billion at fiscal year-end 2002. "Despite the challenging market, we continued to execute ahead of our competitors, resulting in another solid quarter for Cisco," said John Chambers, CEO of Cisco Systems. "By focusing on what we can control and influence, we saw dramatic year-over-year improvements in net income, gross margins and profitable market share gains as well as solid revenue growth, which is reflected in another quarter of cash flow from operations in excess of a billion dollars. We are well positioned for an upturn, regardless of when it occurs." Chambers continued, "I spent the last month traveling to eight countries and 17 cities and I visited with thousands of customers and government leaders, whose message is clear -- the network is a long-term strategic investment for driving productivity. As business turns around, spending will return. Cisco is well positioned in both traditional and new growth markets such as network storage, security, wireless LAN and IP telephony."