Cisco announced that they are going to try to make 10 billion dollars worth of acquisitions. Dell currently is using its leverage to get the computer parts it needs from Taiwan despite the earthquake. They also signed an exclusive agreement with Samsung for LCD's. Merrill announced earnings today and said that 20 percent of the assets for its new Unlimited Advantage fee structure are new cash which is very important for the company. Mike Rosete presented the Fundamental of the Week which was cash flow vs. earnings.
Net income is defined as the money a company earned after taxes.
Some expenses are subtracted from revenues that are not cash expenses. These are depreciation and amoritization which are accounting charges that reflect the economic deterioration of the value of assets. This is the cash flow that a company has generated. A company having a negative income may not be in a bad position if it has a positive cash flow. Their product manager recently resigned but it hasn't been announced yet.