LONDON, UK / ACCESSWIRE / September 26, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Worldwide technology leader, Cisco Systems, Inc. (NASDAQ: CSCO) ("Cisco"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/'symbol=CSCO. The Company announced the acquisition of Sunnyvale based hyper convergence software maker, Springpath Inc., in a US$320 million cash and assumed equity deal with additional retention-based incentives. The press release posted on September 22, 2017, spelled the reasons for the acquisition. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CSCO. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/'symbol=CSCO
Strategic Relationship
Springpath has become an important player in the strategy of Cisco since working together in 2016 to launch and deliver HyperFlex which was the first hyper-converged infrastructure system of the industry. Hyper-converged infrastructure is the new method to deliver enterprise solutions where complex manual processes and un-connected processes can be controlled via cloud, data center consolidation, and other techniques for better functioning.
Springpath has developed a distributed file system purpose-built specifically for this which enables server-based storage. This acquisition will add to the data center portfolio and help serve customers with simple and economic software-defined infrastructure.
Competition
Companies like Cisco and HP must catch up with the leading players such as Nutanix which is the pioneer in this technology and created the product in 2011. It is estimated to be the largest vendor in terms of customer deployments (3,100) in 2016, as per market research firm, Forrester. Following this are SimpliVity and Pivot. Forrester expects HyperFlex to become an important offering in the hyper-convergence market given the Company's market share and customer base.
Expectations
The market reacted favorably for the Company and the closed 2.05% higher at US$33.37 per share on the back of the announcement. The deal is expected to close by early 2018 post the regulatory due diligence. The Company reported a Q3 2017 revenue of US$11.9 billion with a net income of US$2.5 billion. However, it had predicted a fall in revenue in Q4 2017 revenue from 6% to 4% over the previous year. The Company has undertaken many acquisitions in May 2017 to boost its product offering.
Springpath Data Platform markets itself as eliminating the need for network storage and intuitive integration into the existing management tools to maximize operational efficiency. It focuses on using data management and optimization capabilities for resource utilization and increasing the adoption of DevOps in the organizations with agile IT infrastructure. It helps enterprises leverage storage inside the existing servers with VMware for storage, management, and protection. Its hyper-convergence helps turn servers into a single pool to compute and as storage resources.
Last Close Stock Review
Cisco Systems On Monday, September 25, 2017, the stock closed the trading session at $33.72, climbing 1.05% from its previous closing price of $33.37. A total volume of 32.17 million shares have exchanged hands, which was higher than the 3-month average volume of 20.22 million shares. Cisco Systems' stock price advanced 7.94% in the last one month, 4.59% in the past three months, and 7.59% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 11.58%. The stock is trading at a PE ratio of 17.70 and has a dividend yield of 3.44%. The stock currently has a market cap of $168.43 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
