Welcome to the - Bank of Cisco

Welcome to the - Bank of Cisco
It now appears that Cisco CEO John Chambers has missed the opportunity to become Treasury Secretary in a John McCain administration, nevertheless, Chambers can take solace in his current "gig" as Treasury Czar to Cisco networking partners and customers the world over. Welcome to the - Bank of Cisco

According to Cisco's 2008 Annual Report to shareholders:

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"We provide financing guarantees, which are generally for various third-party financing arrangements to channel partners and other customers. "We could be called upon to make payment under these guarantees in the event of nonpayment to the third party. "As of July 26, 2008, the total maximum potential future payments related to these guarantees was approximately $830 million."

Additionally, the Cisco lease receivables below represent sales-type and direct-financing leases. It is interesting to note that Cisco lease receivables increased by 52.5% on a net sales increase of only 13.2%

Cisco 2008 2007 Increase Increase Percentage
Lease receivables, net (in millions) 1,416 928 488 52.5%

Source: Cisco Form 10-K Filings with the U.S. Securities and Exchange Commission. The Cisco financed service contracts below are primarily related to technical support services and these increased 54.5% on an 18% increase in net service revenue.

Cisco 2008 2007 Increase Increase Percentage
Financed service contracts (in millions) 1,318 853 465 54.5%

Source: Cisco Form 10-K Filings with the U.S. Securities and Exchange Commission. Although it's related to product revenue, Cisco does not "define" its loan receivables which increased a whopping 77.4% on a mere 13.2% increase in net sales.

Cisco 2008 2007 Increase Increase Percentage
Loan receivables, net (in millions) 479 270 209 77.4%

Source: Cisco Form 10-K Filings with the U.S. Securities and Exchange Commission. Finally, Cisco has entered into foreign exchange forward contracts with maturities of up to two years related to long-term customer financings.


Is it possible that with the credit crunch crisis, Cisco's competitors will meet their "Waterloo" at the hands of the new and growing - Bank of Cisco

Brad Reese
http://www.BradReese.Com One year warranty on refurbished: Cisco Aironet Cisco Power Supplies Cisco VoIP Gateways One year warranty Cisco Repair One year warranty Refurbished Cisco

  
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