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

To: Sr K who wrote (74611)	11/14/2007 10:00:41 AM
From: Elroy	Respond to of 77400

Nope. I posted earlier and you can see it in Cisco's SEC filings, that almost all revenue is in U.S. Dollars. CSCO can still benefit from currency fluctuation although they bill in US$. Even though CSCO charges US$ for all its products, the Europeans will still buy more dollars worth since their networking budget is in euros, and what cost 100 euros a year ago costs only 90 euros today. They may have budgeted 100 euros in 2006 and 110 euros in 2007, but when they translate the 2007 budget into dollars, the increase is more than 10% since the 100 euros in 2006 bought, say, 120 dollars of product, but the 110 euros in 2007 buys 140 dollars due to euro appreciation. The numbers are just approximations, but the point is valid. Even if a European customer had a flat networking budget in euros in 2007 versus 2006, he spent more dollars (what CSCO's financial statements measure) in 2007. That affect has got to be goosing CSCO's revenue growth by 2%-5% per year. The dollar decline has that affect on every multi-national that provides financial statements in dollars. We'll see the opposite (slower revenue growth) when (if) the dollar every apppreciates for a sustainable period.