Cisco 2006 Annual Report Download - page 51

54 Cisco Systems, Inc.
Under the terms of the denitive agreements related to these acquisitions, the purchase consideration for the acquisitions in scal 2006
consisted of cash, shares of Cisco common stock, and fully-vested stock options assumed. The purchase consideration for the Company’s
acquisitions is also allocated to tangible assets acquired. A summary of the purchase acquisitions and asset purchases completed in scal
2005 and 2004 is as follows (in millions):
Fiscal 2005
Shares
Issued
Purchase
Consideration
Liabilities
Assumed In-Process R&D Expense
Purchased
Intangible
Assets Goodwill
Actona Technologies, Inc. — $ 90 $ 4 $ 4 $ 21 $ 66
Airespace, Inc. 23 447 11 3 95 337
NetSolve, Incorporated — 146 6 — 31 78
P–Cube Inc. — 213 17 6 56 150
Procket Networks, Inc. — 92 10 — 26 76
Topspin Communications, Inc. — 253 23 4 67 164
Other — 350 41 9 155 196
Total 23 $ 1,591 $ 112 $ 26 $ 451 $ 1,067
• Acquisition of Actona Technologies, Inc. to expand the functionality of its branch-ofce access routers with intelligent
network services that are designed to allow users at remote sites to access and transfer les as quickly and easily as
users at headquarters sites. The acquired technology is also designed to allow enterprises to centralize le servers
and storage and better protect and manage their remote ofce data.
• Acquisition of Airespace, Inc. to add to its portfolio of wireless local-area networking (WLAN) solutions and to add
advanced features and capabilities to the Company’s existing WLAN product portfolio.
• Acquisition of NetSolve, Incorporated to add remote network-management services, including real-time monitoring
of IP communications networks, network security software, and network devices, to the Company’s solutions offered
to specialized resellers.
• Acquisition of P–Cube Inc. to provide additional control and management capabilities for advanced IP services, such as
identifying subscribers, classifying applications, and accurately billing for content-based services, to service providers.
• Acquisition of the intellectual property and select other assets of, and hiring of a majority of the engineering team
from, Procket Networks, Inc. to add to the Company’s portfolio of intellectual property and to add a team of silicon and
software architects.
• Acquisition of Topspin Communications, Inc. to add server fabric switches, a new class of server networking equipment
that is designed to help improve resource utilization and reduce equipment and management costs, to the Company’s
switching product portfolio consisting of network and storage switches.
Fiscal 2004
Shares
Issued
Purchase
Consideration
Liabilities
Assumed In-Process R&D Expense
Purchased
Intangible
Assets Goodwill
Latitude Communications, Inc. — $ 86 $ 29 $ 1 $ 16 $ 60
Other — 41 7 2 8 30
Total — $ 127 $ 36 $ 3 $ 24 $ 90
• Acquisition of Latitude Communications, Inc. to add rich-media conferencing that combines voice, video, and Web
conferencing to the Company’s IP communications solutions.
The Consolidated Financial Statements include the operating results of each business from the date of acquisition. Pro forma results of
operations for these acquisitions have not been presented because the effects of the acquisitions, individually or in the aggregate, excluding
Scientic-Atlanta, were not material to the Company’s results.
Notes to Consolidated Financial Statements