Cisco's historical chart depicts that it has had positive OPS for its last 20 quarters. Item A depicts Cisco's generation of positive OPS in Q3 2001 while its EPS turned negative. Item B depicts another negative EPS and positive OPS for its Q1 2002. Large companies such as Cisco should be able to maintain positive OPS when their EPS turns negative since they generally have depreciable assets that generate substantial cash flow. They also have the latitude and should have the discipline to significantly cut operating expenses to conserve cash (large layoffs, etc.) as they go from generating a net profit to a loss. Lucent and Agilent are examples of a large companies that have had difficulties in maintaining positive OPS after their EPS turned negative. Also, see Cisco's 5 Year OPS diagnostic chart.