Cisco 2004 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2004 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 67

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67

A summary of the purchase transactions completed in fiscal 2003 and 2002 is as follows (in millions):
Purchased
Shares Purchase Assumed In-Process Intangible
Acquisition Issued Consideration Liabilities R&D Expense Goodwill Assets
FISCAL 2003
AYR Networks, Inc. 9 $ 96 $ 1 $ — $ 59 $ —
Okena, Inc. 9 152 8 3 96 45
Psionic Software, Inc. 1 11 2 — 8 5
SignalWorks, Inc. 1 16 2 1 9 4
The Linksys Group, Inc. 29 480 111 — 221 114
Total 49 $755 $124 $ 4 $393 $168
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
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 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 to the Company’s results.
Purchased Intangible Assets
The following table presents details of the purchased intangible assets acquired during fiscal 2004 and 2003 (in millions, except
number of years):
TECHNOLOGY TRADE NAMES CUSTOMER RELATIONSHIPS
Estimated Estimated Estimated
Useful Life Useful Life Useful Life
(in Years) Amount (in Years) Amount (in Years) Amount Total
FISCAL 2004
Latitude Communications, Inc. 4.5 $ 4 7.0 $ 1 4.0 $ 11 $ 16
Riverhead Networks, Inc. 4.5 5 — — 3.5 2 7
Twingo Systems, Inc. 3.5 1 — — — — 1
Total $10 $ 1 $ 13 $ 24
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 47 4.5 67 114
Total $47 $47 $ 74 $ 168
2004 ANNUAL REPORT 47