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Thinkpad (AXcess News) Houston, TX - Shares of Cisco Systems, Inc. (Nasdaq: CSCO)rise over6 percent Wednesday following the release of Cisco's second-quarter results. Cisco will now integrate Scientific-American, its newest acquisition and launch a new customer electronics division, the networking equipment maker said in a conference call.
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Microsoft Cisco reported second-quarter revenue increased 9.3 percent to $6.63 billion over the same period the prior year, though earnings were only up slightly at 22 cents per share compared to 21 cents per share a year earlier.
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Laptop Computers Cisco executives said in a conference call that the Scientific-American acquisition should produce $250 million in revenue in the current period and $525 million for the full fourth-quarter.
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Laptop Computer The cable TV equipment maker, which Cisco announced the acquisition of in November, will add new products for its customers, Cisco said. CFO Dennis Powell said the combined growth should reflect in a 10 to 15 percent increase in revenue for the year.
Should the acquisition of shares be carried out over the stock market, the nominal value of each share (without additional acquisition expenses) may not exceed or fall below 10% of the opening share price in Xetra trading (or representative Xetra system with functionally comparable replacement system) on the day of trading on the Frankfurt (am Main) Stock Exchange.
- Should the acquisition of shares be carried out by means of a public buyback offer to the Company's shareholders, the acquisition price offered or the limit values of the acquisition price range offered per share (without additional acquisition expenses) may not be more or less than 10% of the average final auction price in Xetra trading (or representative Xetra system with functionally comparable replacement system) between the fourth and tenth day of trading before the publication of the offer on the Frankfurt (am Main) Stock Exchange.
Desktop Computer Cisco is preparing to launch new consumer electronic home entertainment products, which some of which were developed by Scientific-American and Kiss Technologies, which Cisco acquired last year.
Notebooks Cisco already debuted a Kiss-developed home entertainment product, a networked DVD player called the Kiss DP-600 at the Home Electronics Show in Las Vegas. The networked DVD player is currently only available in Europe, but Cisco expects to release the home entertainment product in the United States later this year.
Lenovo Cisco's acquisition of Scientific-American and Kiss Technologies says the networking equipment manufacturer may be looking to expand further into the home entertainment consumer market which couldmean more acquisitions this year. The home entertainment sector is one of the fastest growing area of electronic technologies that appears to be converging television, voice and Internet technologies and while Cisco is not saying anything about any potential acquisition targets it's not denying it either.
Shares of Cisco were up $1.17, or 6.47 percent, at $19.26 in late morning trading following the news of its earnings and conference call disclosures.
