Chicago, May 20: Cisco Systems Inc., the No. 1 maker of equipment that directs Internet traffic, on Monday said it would take a noncash charge of up to $500 million for its pending acquisition of storage switch maker Andiamo Systems Inc. Cisco said in a filing with the U.S. Securities and Exchange Commission that a new regulation requires it to consolidate Andiamo on its financial statement on July 27, the first day of its fiscal year 2004.
Cisco previously said it expected to consolidate Andiamo entirely upon the acquisition's close.
In January, U.S. accounting rule-makers approved final rules that clamp down on the abuse of financing entities that allowed companies such as Enron Corp. to keep large amounts of debt off their books.
Cisco said its investment in Andiamo was never an off-balance-sheet vehicle. Bureau Report