Cisco 2003 Annual Report Download - page 46

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A summary of the purchase transactions completed in fiscal 2002 and 2001 is outlined as follows (in millions):
Purchased
Shares Purchase Assumed In-Process Intangible
Acquisition Issued Consideration Liabilities R&D Expense Goodwill Assets
FISCAL 2002
Allegro Systems, Inc. 8 $ 161 $ 3 $ 28 $ 19 $ 105
AuroraNetics, Inc. 3 43 8 9 16 14
Hammerhead Networks, Inc. 10 171 4 27 105 —
Navarro Networks, Inc. 6 83 2 1 73 —
Total 27 $ 458 $17 $ 65 $ 213 $ 119
FISCAL 2001
Active Voice Corporation 8 $ 248 $ 18 $ 37 $ 151 $ 99
IPCell Technologies, Inc. 3 208 5 75 73 29
IPmobile, Inc. 5 422 — 181 144 13
NuSpeed, Inc. 6 463 — 164 212 2
PixStream Incorporated 7 393 2 67 170 145
Radiata, Inc. 5 207 4 29 71 99
Other 12 879 24 302 150 237
Total 46 $ 2,820 $53 $ 855 $ 971 $ 624
The following table presents details of the purchased intangible assets acquired during fiscal 2003 and 2002 (in millions, except
number of years):
TECHNOLOGY PATENTS OTHER
Estimated Estimated Estimated
Useful Life Useful Life Useful Life
(In Years) Amount (In Years) Amount (In Years) Amount Total
FISCAL 2003
Okena, Inc. 4.5 $ 38 — $ — 2.5 $ 7 $ 45
Psionic Software, Inc. 3.0 5 — — — — 5
SignalWorks, Inc. 4.5 4 — — — — 4
The Linksys Group, Inc. ————4.5 114(1) 114
Total $47$—$121 $168
FISCAL 2002
Allegro Systems, Inc. 4.1 $ 98 — $ — 2.0 $ 7 $105
AuroraNetics, Inc. — — 5.0 3 2.0 11 14
Total $ 98 $ 3 $ 18 $ 119
Note 1: The purchased intangible asset relates to trademarks and customer relationships.
The Consolidated Financial Statements include the operating results of each business from the date of acquisition. Pro forma results
of operations have not been presented because the effects of these acquisitions were not material on either an individual or aggregate
basis to the Company’s results.
The Company acquired AuroraNetics, Inc. in the first quarter of fiscal 2002. During fiscal 2003, the Company issued approximately
2.7 million shares of common stock with a value of $39 million to the former stockholders of AuroraNetics, Inc., as a result of the
achievement of certain agreed-upon milestones. Such amounts were allocated to goodwill and deferred stock-based compensation
totaling $31 million and $8 million, respectively. The Company may also be required to issue approximately up to an additional
2.7 million shares of common stock to such former stockholders under the terms of the definitive acquisition agreement, if certain
other agreed-upon milestones are achieved.
44 CISCO SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS