SAN MATEO (05/12/2000) - Qlogic Corp. last week agreed to acquire Fibre Channel switch-supplier Ancor Communications Corp. in a stock-swap deal valued at $1.7 billion. Under the terms of the agreement, Qlogic, a supplier of Fibre Channel connectivity products, will exchange 0.5275 shares of its common stock for each Ancor share. The proposed transaction, which is still subject to approval of the shareholders of both companies and appropriate regulatory clearances, is expected to close in the third quarter of this year, Qlogic officials said. The acquisition is aimed at enabling Qlogic to offer its customers a more complete range of Fibre Channel SAN (storage area network) products, company officials said.
ACQUISITION: NTT subsidiary buys Web-hosting company VerioNTT Communications Corp., a subsidiary of Japan's Nippon Telegraph and Telephone Corp., last week agreed to acquire Web-hosting and Internet service provider Verio Corp. for approximately $5.5 billion in cash.
With the acquisition of Verio, NTT Communications aims to further expand the reach of its global network and IP-based services, which are primarily focused on Asia, company officials said.
Verio currently hosts more than 400,000 Web sites and also operates an Internet backbone in the United States, officials said. By combining Verio's operations with NTT Communications' existing IP-based network, officials at the Japanese company said NTT will be able to meet the needs of corporate customers, from small businesses to major enterprises in the Pan-Pacific region and the United States.
FINANCIALS: Cisco fields strong quarterly resultsCisco Systems Inc. strong third-quarter results announced last week reflect the company's best year-on-year growth in three years as well as the networking equipment vendor's 13th consecutive quarter of growth, according to Cisco officials.
For the three-month period ending April 29, Cisco's net sales rose 55.1 percent compared with the same quarter a year earlier to $4.92 billion, company officials said.
Factoring in a variety of costs and charges, the vendor's operating income was $744 million, down 13.2 percent, and net income advanced 4.1 percent to $662 million. Excluding one-time costs associated with research and development, taxes on stock options, acquisition-related costs, and other similar charges, Cisco's operating income increased 49.3 percent to $1.31 billion and net income was 58.1 percent higher at $1.03 billion, marking the first time the company has netted more than $1 billion.
Routers continued to contribute the most to Cisco's sales, representing 41 percent of all sales in the third quarter compared with 39 percent in the previous quarter. Revenue from switches was 39 percent, which was unchanged.
Revenue from access products rose to 13 percent, up from 12 percent, and revenue from all other products decreased to 7 percent, down from 10 percent.
Shining stars were the company's Catalyst 6000 and Catalyst 4000 products, which saw growth of more than 40 percent, company officials said.