BradReese.Com Cisco vs. Extreme Networks Price Quote Comparisons

Home About Repair Power Supplies Refurbished Blog Quick Links Site Map Contact Us

 
Brad Reese speaks out
Learn more about Brad Reese...
Archive
  Help

Aironet

Power Supplies

VoIP Gateways

Cisco Repair

Refurbished Cisco

Cisco CPQRGs

New Cisco

New HP ProCurve

Cisco Tools

Competitive Lab Tests

Tech Forums

How-to Tutorials

CCIE Gossip

Blogroll

 
View archive of Brad Reese speaks out

Subscribe to Bloggers speak out on BradReese.Com

NDS appears to be another BS acquisition by Cisco

Cisco foolishly bets $5 billion against the success of OTT (Over-the-top content).

Sun, 3/18/12 - 11:59pm    View comments

Another BS Cisco AcquisitionLast week Cisco announced it would pay $5 billion in cash to acquire Bermuda tax haven incorporated NDS Group, which 3-years earlier had gone private in a transaction valued at $2,948,751,000 (page 1).

So why is Cisco now paying $2.051 billion more for NDS when NDS now has -$689.5 million less in total assets (page 52) than it did earlier when taken private (2011-2008)?

5-Year NDS Balance Sheet Data (page 52)

5-Year NDS Balance Sheet Data

Perhaps Cisco is paying $2 billion more because NDS annual revenue has grown a whopping +18.32% (i.e. $148 million, page 51), while NDS annual operating income has grown a stunning +35% (i.e. $63.6 million, page 51) since being taken private (2011-2008).

I mean, in its most recent 6 months, NDS grew revenue year-over-year by an astronomical +7.32% (i.e. $32.55 million) and operating income year-over-year by an outlandish +4.5% (i.e. $5.46 million).

5-Year NDS Statements of Operations Data (page 51)

5-Year NDS Statements of Operations Data

(+) Fiscal year 2011 included 53 weeks while fiscal years 2010, 2009, 2008 and 2007 included 52 weeks.

(1) In January 2011, we sold the OpenBet business, which operated as a separate segment involved in the development and sale of software systems and applications in the betting and gaming market, for net cash consideration of $292 million, as we no longer considered the OpenBet business to be core to our strategy. We have classified the OpenBet business under discontinued operations for all periods covered herein and in the accompanying consolidated financial statements.

Source: U.S. Securities and Exchange Commission

However, this really caught my attention (page 19) about NDS:

"During the six months ended December 31, 2011 and the fiscal years ended June 30, 2011 and 2010, our top ten clients accounted for approximately 72%, 65% and 72%, respectively, of our total revenue. We expect to continue to be dependent upon a limited number of clients for a significant portion of our revenue..."

Finally in my opinion, Cisco has just foolishly bet $5 billion against the success of OTT (Over-the-top content).

Related stories:

Cisco acquisition NDS Pay-TV Piracy resource center

Cisco acquisition NDS accused of pay TV piracy, hacking, sabotage, fabricated legal actions and obtaining telephone records illegally

Cisco tunes into $5bn of execution and reputational risk with NDS buy
 


What's your take?

Contact Brad Reese

Subscribe to Bloggers speak out on BradReese.Com

Brad's Favorite Story Picks

  1. Did Deloitte's Q&A destroy Cisco's single vendor network marketing strategy?
  2. Can IP host reputation systems protect against the Russian Business Network? - Mike Patterson
  3. Competitive vendor analysis: 10GbE and 40GbE switches by chassis and rack - Darius Goodall
  4. January 2012 Cisco CCIE count
  5. Monitoring cloud services with Cisco's Flexible Netflow - Mike Patterson
  6. Cisco's Q2'FY12 switching, routing, collaboration revenues and product gross margin sequentially declined
  7. Cisco's historical financial statements confirm -$809 million discrepancy in security sales
  8. Why did Cisco deflate its FY11 security product sales by -$382 million?
  9. This story is how the Cisco CCIE program was born - Stuart Biggs
  10. NetFlow vs. IPFIX Exporter - Mike Patterson
  11. Cisco WebEx NetFlow rap video - Mike Patterson
  12. Cisco CEO tries to snow CNN's Poppy Harlow
  13. Cisco's copyright complaint killed Marc La Porte's CCIE Hall of Fame
  14. Cisco crashes and burns on Fortune 100 best companies to work for list
  15. Do Fabrics enable a large and flat Layer-2 broadcast domain? - Douglas Gourlay
  16. Has Cisco's top PR executive Terry Anderson bolted?
  17. Fabrics are faster: Arista vs. Brocade vs. Juniper - Douglas Gourlay
  18. Changing the conversation: It's solutions, not boxes, that matter to enterprises - Jean-Luc Ronarch
  19. Threat detection with NetFlow: IP reputation - Mike Patterson
  20. View the archive of Bloggers speak out on BradReese.Com
 
blog comments powered by Disqus

CCIE available Metro DC

Supplement Cisco SMARTnet Contracts

 

©2013 BradReese.Com - Home - About - Repair - Power Supplies - Refurbished - Blog - Quick Links - Site Map - Contact Us