Financing Risk Looms Despite Cisco's Cautious Stance
Just as Cisco (CSCO Quote) claws away at its mismanaged mountain of inventory, Wall Street is stumbling over another heap of trouble: Loans to cash-strapped customers.
Time and time again, Cisco has said it would be cautious in lending customers money with which to buy equipment and meet operating costs, a practice known as vendor financing. The San Jose, Calif.-based networker spoke of its caution most recently on Monday, during its earnings warning. But a recent financing deal, combined with a loan default Monday at upstart telco Winstar (WCII Quote), has several analysts and investors saying Cisco is throwing good money after bad.
Promises, Promises
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