For the first 9 months of its FY09, Cisco net sales plummeted $1.59 billion while simultaneously Cisco net income sank $985 million.
Cisco Consolidated Statements of Operations F3Q09 (Page 5)
(In millions, except per-share amounts)
Source: U.S. Securities and Exchange Commission.
Luckily for the first 9 months of FY09, Cisco employee share-based compensation expense defied gravity by climbing to $835 million (a $68 million increase).
Cisco Summary of Employee Share-Based Compensation Expense F3Q09 (Page 10)
(In millions)
Source: U.S. Securities and Exchange Commission.
More Good News for Cisco:
Cisco CEO John Chambers stated during the F3Q09 earnings call that Cisco now has a whopping 6 TelePresence customers (last paragraph, 2nd sentence) with 50+ telepresence systems deployed.
Obviously missing from Chambers' TelePresence customer count is the $45 million Regus deal that Cisco lost to Polycom.
It appears that the ongoing dilution of Cisco shareholder wealth is alive and well and continues to grow even in these tough economic times.
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Ever hear of severance packages?
Brad,
It is nice to see you still hate Cisco. The charge is most likely because of stock given to their executives. I have friends at Cisco and they told me that broad based stock options went away, and now you have to be at a high pay grade to receive any stock compensation. It is amazing to see the changes over there, they hired executives from their competitors, and now they are looking more like an avaya or nortel where the worker bee gets squat and the executives live high on the hog.
Hate Cisco?
How can blogging that "Cisco employee share-based compensation expense defies gravity" be regarded as I HATE CISCO?
Just because I see humor in Cisco's "bountiful hubris," it doesn't mean that I hate Cisco!
For example, when Cisco CEO John Chambers bragged this week with a straight face that Cisco now had a whopping 6 TelePresence customers with deployed systems, it's as funny to me as watching stand-up comedian Dom Ierrera's shtick:
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
I've got to
add a few of those lines to my routine. Great stuff!
Dom Ierrera is funny!
I was fortunate to enjoy Dom's routine at the "old" Dunes Casino (now the Bellagio) in Las Vegas!
Dom's routine is actually funnier in person, he had me rolling with laughter.
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Is this a joke?
Did you not read the first sentence of the same paragraph?
"...with 45 new customers in Q3 and approximately 400 new system orders."
Or the rest of the second sentence where he says "a total well over 300 customers in our total customer base". Obviously whatever you highlighted is not in the right context, and is a far far reach.
This recent press release:
http://newsroom.cisco.com/dlls/2009/prod_033009b.html
confirms the 300 customer comment, and mentions over 2000 units deployed.
While I think Cisco TelePresence sounds like a hassle to implement, at least get your facts right or find some evidence to back up your assertion.
No joke, but it is funny!
No joke, but it is funny!
Last paragraph, 2nd sentence
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
Telepresence
That would be 6 customers with 50+ units each and a total of 300 telepresence customers with at least 1 unit as I read it.
Mark Chandler Cisco General Counsel
In a shareholder lawsuit, Mark Chandler - Cisco's General Counsel, could easily argue that by not using the word "each," Chambers simply said:
"We now have half a dozen customers with 50+ telepresence systems deployed."
Remember the big fanfare over Cisco TelePresence and Regus 2 years ago?
Well, we learned this week that Cisco lost that $45 million TelePresence deal to Polycom, because Regus CEO Mark Dixon said:
"It was not possible to execute, in terms of the equipment."
Now in my personal opinion, that's a very big red flag!
Furthermore, this week Cisco CEO John Chambers told Fortune that he was bickering with his wife about installing TelePresence in a bedroom of his home.
Amazingly, almost 2 years ago, Chambers publicized that he had bickered with his wife and finally installed TelePresence in the basement of his home!
Again in my personal opinion, another very big red flag!
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
You're clearly biased
Brad,
You clear dislike Cisco which is certainly up to you but to hold yourself up as some sort of unbiased freelance writer for NetworkWorld is preposterous. I especially enjoyed your article about Cisco losing their domain name. Your a waste of space.
I agree Gary
I agree with you Gary, I am in fact a waste of space!
Also agree with you that I am extremely biased when it comes to Cisco.
Nonetheless, are you saying you don't find it "curious" that Cisco's employee share-based compensation expense climbed $68 million to $835 million while net sales simultaneously tanked $1.59 billion along with net income plummeting $985 million?
Why don't you find that curious?
Finally, what's your explanation for it?
Sincerely,
Brad Reese
BradReese.Com Cisco Refurbished
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