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Cisco Spills the Beans

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Cisco Systems Inc. (Nasdaq: CSCO) announced this morning that an executive "prematurely and inadvertently" sent an email with information about the company's yet-to-be announced second-quarter 2002 earnings results, which are to be announced tonight after the market closes.

Cisco shares were trading up $0.33 (1.78%) to $18.83 in late morning trading on Wednesday.

Because the email memo was widely distributed inside the company, Cisco felt it was necessary to disclose the flub. The company is trying to make sure it doesn't give the appearance of violating Regulation Fair Disclosure, the SEC rule that says that all publicly traded companies have to disclose material, market-moving information to all investors at the same time (see Cisco Elucidates Prematurely).

Cisco says the memo characterized the company's earnings in "positive terms" but did not "include specific information about revenues or earnings for the quarter."

The memo said Cisco's booked orders for products were $3.9 billion versus an internal goal of $3.75 billion for the quarter. In a statement, Cisco CFO Larry Carter said that Cisco's earnings, "will exceed the current consensus estimates of earnings per share and revenues for the second quarter of our fiscal year."

Analysts expected Cisco to earn 5 cents a share on revenues of about $4.5 billion, on a pro forma basis.

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com
temporary 12/4/2012 | 10:58:41 PM
re: Cisco Spills the Beans At $18/share, holding steady for almost one year, and the current option price, John Chambers is telling stockholders that Cisco is better able to manage their $18 billion. After all Cisco could use a good portion of that money and buy back sone outstanding shares.

Would you trust Cisco to manage some $18 billion in funds? The same company that blew $388 billion in stockholder value. The same company that hired goofs like Carson Chen and Kevin Kennedy?

When I left Cisco, I took out my stock at $18, placed it into a conservative fund and earned 7%, a lot more than Cisco earned over the same period.

Employees there have all but given up on any gains in their stock options.


knave 12/4/2012 | 10:58:39 PM
re: Cisco Spills the Beans

hey temporary,where did you get 7% !
knave 12/4/2012 | 10:58:39 PM
re: Cisco Spills the Beans

hey temporary,where did you get 7% !
gumbydammit 12/4/2012 | 10:58:36 PM
re: Cisco Spills the Beans
But of course the people *still there* are getting new stock options considerably less than $20.

FYI, its 21 (B)illion in cash now. Someone's making a decent ROI.
cyber_techy 12/4/2012 | 10:58:34 PM
re: Cisco Spills the Beans Employees there have all but given up on any gains in their stock options.

Employess at most companies are hoping to keep their jobs and are not thinking about their stock options.
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