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

To: Stock Farmer who wrote (63686)	4/22/2003 5:56:22 AM
From: rkral	Read Replies (1) \| Respond to of 77399

OT ... John, re "In the past 10 years, those 16,000 employees took away 18.923 Billion dollars, or a bit more than a million bucks per employee." Over and above regular salaries .. in a 7 year period. re "If so then Cisco's earnings after option expense would be 7,346 - 18,923 = (11,577)... deeply in the hole." Using the "Shannon/mindmeld true-up method". The FASB method puts the earnings at $3,584 (373 - 2705 + 1549 + 1487 + 1109 + 899 + 872). That's a $15,161 difference between the two methods -- 15 billion dollars different. It's no wonder that option debates can become as heated as religious wars. <gg> I wonder why mindmeld is a proponent of "options expense true-up" AND then also thinks Cisco is a great company. Regards, Ron

To: Stock Farmer who wrote (63686)	4/22/2003 12:53:25 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 77399

"Implied employee compensation" - did you net out the acquisitions, original investors etc? Doesn't look like it. You really can't lump all of those acquisitions in as "employees". And btw, my guess is about half of the acquisitions Cisco makes are not announced, they are private deals. So no way to determine how many options were issued as a part of purchase price of a company. BTW interesting chart on Cisco on the bottom of this page.