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Cisco quarterly revenue up 4% to record USD 12.8 bln

2015-08-13 08:42:00| Telecompaper Headlines

(Telecompaper) Cisco reported record revenues for its fiscal fourth quarter to July of USD 12.8 billion, up 3.9 percent from the same period last year. Sales in the Americas increased 7 percent, while the both EMEA and APJC regions were flat. Product revenue growth was led by Collaboration and Data Center, growing at 14 percent each, while the main products Switching and NGN Routing grew by 2 percent and 3 percent, respectively. Cisco reported a gross margin of 60.2 percent, while operating costs were up 3 percent year-on-year. Compared to fiscal Q3, the company added 900 employees, mainly for investments in key growth areas such as security, cloud and software. Adjusted operating profit was still up 9 percent year-on-year to USD 3.8 billion, and net profit rose 3.2 percent to USD 2.3 billion. Adjusted EPS was up 7.3 percent to USD 0.59. Cisco generated USD 4.1 billion of operating cash flow in the quarter, up from USD 3.6 billion a year ago, and finished the fiscal year with total cash of USD 60.4 billion. Cisco's new CEO Chuck Robbins also noted the solid rise in deferred revenue, up 7 percent to USD 15.2 billion at year-end. "I'm particularly pleased with the strong growth of deferred revenue which shows we are very effectively driving our business to a more predictable software-based business model, at the same time as growing revenues and earnings." The company's product backlog was worth USD 5.1 billion at the end of fiscal 2015, down from USD 5.4 billion a year earlier. For fiscal Q1, Cisco forecast revenue growth of 2-4 percent, an adjusted gross margin of 61-62 percent and adjusted EPS of USD 0.55-0.57. Over the full year, the company also expects around USD 700 million in charges for its restructuring announced in August. 

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Symantec sells Veritas to Carlyle for USD 8 billion

2015-08-11 15:34:00| Telecompaper Headlines

(Telecompaper) Symantec has agreed to sell its information management business, known as Veritas, to an investor group led by the Carlyle Group together with GIC, Singapore's sovereign wealth fund, for USD 8 billion. Veritas offers a range of software and systems to help businesses organize, manage and store their information. It had revenues of USD 2.4 billion in 2014 and serves 75 percent of the Fortune 500 countries. Symantec announced last October the decision to spin off the information management business under the name Veritas and consider strategic options for the activities, so it could focus on its core security software business. With the sale to Carlyle, Symantec said it expects to receive a net USD 6.3 billion in cash proceeds, which it will use for capital returns to shareholders as well as investing in its security business. The company already announced a USD 1.5 billion increase in its share buyback programme to a total USD 2.6 billion and said it will maintain its quarterly dividend of 15 cents a share. 

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Sprint affiliate Shentel to buy Ntelos for USD 640 mln

2015-08-11 08:59:00| Telecompaper Headlines

(Telecompaper) Shenandoah Telecommunications (Shentel) has entered into a definitive agreement to acquire fellow US regional mobile operator Ntelos for approximately USD 640 million in cash. Shentel will assume Ntelos's net debt, which stood at USD 431 million at the end of June, adjusted for its expected obligations from winding down its Eastern Markets division in November. Ntelos shareholders will receive around USD 208 million in cash, or USD 9.25 per share, an approximately 60 percent premium over the last 30 days. The purchase will be financed with an expanded credit facility. The 'nTelos Wireless' brand will be discontinued in favour of Sprint, with which Shentel has concurrently extended its affiliate relationship. Ntelos's 297,500 retail customers in its Western Markets, (parts of Virginia, West Virgina, Maryland, North Carolina, Pennsylvania, Ohio, Kentucky) will use the Sprint branded service. Shentel will continue to upgrade the nTelos network to 4G LTE and expand coverage in the areas with at least an additional 150 sites over the next three years, using spectrum acquired by Sprint and made available to Shentel as part of the transaction.

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Intumescent Coatings Market to Reach USD 1.11 Billion by 2022: Grand View Research

2015-08-11 07:00:00| Coatings World Breaking News

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Silver Lake invests USD 1 bln in Motorola Solutions

2015-08-05 15:45:00| Telecompaper Headlines

(Telecompaper) Motorola Solutions has attracted an investment of USD 1 billion from Silver Lake to help grow its business in public safety communications. Silver Lake will subscribe to 2.0 percent convertible bonds due 2020. They have an initial conversion price of USD 68.50 per share, a 17 premium on Motorola's average share price in the past 30 days. Motorola said it will use the cash injection to fund part of a new USD 2 billion share repurchase programme. In connection with Silver Lake's investment, Egon Durban and Greg Mondre, managing partners of Silver Lake, will be appointed to Motorola Solutions' board of directors when the transaction closes, which is expected in the third quarter. Durban also serves on the boards of Dell and Intelsat and is chairman of WME Entertainment. Mondre is a director of Avaya, Go Daddy, Red Ventures, Sabre Holdings and Vantage Data Centers, and is on the operating committee of SunGard Capital. 

Tags: solutions silver lake usd

 

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