Cisco Systems, Inc. – $55.74 US   Mkt Cap: 233.0 B 

Disclsoure Insight:  Cisco’s China FCPA Probe Not Going So Well

• Disclosure Insight:  Be careful here.  In late 2020, we first warned about an undisclosed SEC investigation at Cisco Systems.  In Feb-2021, Cisco then disclosed an Foreign Corrupt Practices Act (FCPA) investigation involving China. 
   
• A subtle and recent change in the related disclosure language tells us management now thinks Cisco’s China FCPA probe will have a material adverse effect on operations and cash flows.  Previously, the company explicitly said it would not. 
   
• We think most people missed this language change, which we highlight in today’s report.  Further, our earlier work found Cisco knows exactly what it is doing when it comes to disclosing FCPA matters. They hide things. 
   
• Ignore the recent change in disclosure language at your peril. 

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