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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (174496)	5/11/2003 1:32:16 PM
From: hueyone	Respond to of 186894

It just flies in the face of reason that a company like Cisco with 4.5 billion in revs and 70% GMs have never made a profit EVER. That is the issue I suspect. Other estimates don't turn great companies from cash machines into total losers from an accounting perspective. I have not gone back many years and figured the cumulative impact that expensing stock options at date of grant and amortizing this expense over the vesting periods would have had on Cisco's reported earnings. Have you? (I know JS has done some work with regard to expensing at date of exercise for Cisco and that the results for Cisco don't look good, but I haven't reproduced that cumulative calculation myself yet.) I have looked at Intel quite a few years back before, and as I recall, it looked like to me that through year 1999 or even 2000, that option expense at date of grant would have not represented a very high percentage of net income had options been expensed, and that Intel still would have been considered a very successful company under an options expensing scenario at date of grant. I strongly suspect the same can be said Softie. Stock option grant rates for many companies didn't spiral out of control until the late nineties. Regards, Huey