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

To: LindyBill who wrote (25748)	5/15/1999 4:23:00 PM
From: nihil	Respond to of 77400

"obviously phony" There are a many perfectly legal GAAP choices in recognizing revenue from sales in a quarter. Accounting is judgmental, not an exact science. Using the flexibility to achieve a steady growth of EPS and giving precise guidance to the analysts is an excellent tool of management. As long as one stays within the rules and law, it's no one's business how a corporation reports its earnings.

To: LindyBill who wrote (25748)	5/17/1999 1:30:00 AM
From: James A. Shankland	Respond to of 77400

What I don't understand is why the SEC and the Wall Street analysts has let Cisco get away with these obviously phony quarterly earnings reports. No company can consistently comes in exactly one penny over projected earnings quarter after quarter. Give me a break! Three quarters of the game is guiding projections to where you want them. The remaining quarter is fine-tuning the results using GAAP to shuffle income from quarter to quarter to make it come out just right. Neither is illegal.