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

To: trouthead who wrote (21061)	1/22/1999 7:35:00 PM
From: Chuzzlewit	Respond to of 77397

Junior, here is the liquidity section from Cisco's most recent 10-Q: 17 Liquidity and Capital Resources Cash and equivalents, short-term investments, and investments were $5.9 billion at October 24, 1998, an increase of $735 million from July 25, 1998. The increase is primarily a result of cash generated by operations; and to a lesser extent, through financing activities, primarily the exercise of employee stock options. These cash flows were partially offset by cash outflows from operating activities including tax payments of approximately $125 million, and cash outflows from investing activities including capital expenditures of approximately $125 million. Accounts receivable increased 2.7% from July 25, 1998 to October 24, 1998, while sales grew by 8.3% over the same period. Days sales outstanding in receivables improved to 47 days at October 24, 1998 from 49 days at July 25, 1998. Inventories increased 3.6% between July 25, 1998 and October 24, 1998, which reflects the Company's new product introductions and continued growth in the Company's two-tiered distribution system. Inventory management remains an area of focus as the Company balances the need to maintain strategic inventory levels to ensure competitive lead times versus the risk of inventory obsolescence because of rapidly changing technology and customer requirements. Accounts payable increased by 13.3% at October 24, 1998 over July 25, 1998. Other accrued liabilities increased by 11.7% primarily due to higher deferred revenue on service contracts. At October 24, 1998, the Company had a line of credit totaling $500 18 million, which expires July 2002. There have been no borrowings under this facility. The Company has entered into certain lease arrangements in San Jose, California, and Research Triangle Park, North Carolina, where it has established its headquarters operations and certain research and development and customer support activities. In connection with these transactions, the Company pledged $640 million of its investments as collateral for certain obligations of the leases. The Company anticipates that it will occupy more leased property in the future that will require similar pledged securities; however, the Company does not expect the impact of this activity to be material to liquidity. The Company's management believes that its current cash and equivalents, short-term investments, line of credit, and cash generated from operations will satisfy its expected working capital and capital expenditure requirements through fiscal 1999. You can get the full text of the 10-Q from Edgar online. Hope this helps. TTFN, CTC

To: trouthead who wrote (21061)	1/22/1999 7:53:00 PM
From: Chuzzlewit	Respond to of 77397

Junior, I think I understand the investors earnings vs taxable income. Kind of like the difference between what I could sell my house for vs its tax appraisal value. Nah, more like what the realtor tries to tell you you could sell your house for in order to entice you into giving her a listing, and what the insurance company tells you it was worth after a fire has destroyed the whole thing. <VBG> Basically, that gives you the idea. Companies generally like to put their best faces on for investors and bankers etc., and their worst side on for the IRS. But since the IRS rules are relatively stringent and more easily understood than GAAP accounting, and since I believe that companies present a more consistent picture to the IRS than they do to shareholders, I am always interested in learning about the taxes the company actually paid during the period (which you can find on the cash flow statement), rather than what it would have paid if its "earnings" were taxable (generally called "provision for income taxes" on the P&L). TTFN, CTC