Tomahawk, WI 9/12/2013 (BasicsMedia) – The recession might have hit hard on many companies in the stock exchange but not Cisco Systems, Inc (NASDAQ:CSCO) which is currently boosting of good financial results. For the final quarter of the year straight to the numbers, Cisco reported fourth quarter revenue totaling to $12.4 billion with a net income of $2.4 billion. Cisco has been enjoying good times in the market resulting in the growth of its product orders by 4%.

The American and the EMEA contributed to these good results by increasing by as much as 5% and 6% respectively. The only negative news coming out of Cisco is the negative growth of 6% out of APJC regions and 6% out of China. Israel on its own grew by 27% while India grew by 18%. The good results can be attributed to Cisco cutting down on its workforce by 5% translating to 4000 jobs; the company had also lowered its expectation for the last quarter.

Cisco is currently using one of the best strategies aimed at ensuring its growth pattern is consistent for the longest time thus the reasons why it engaged in mass layoff of staff. Cisco enjoyed sales totaling to over $48 billion in FY13 making it one of the leading global networking provider.  For data transfer and offering of communication solutions. It is no surprise that the company is currently working at a market cap of about 125 billion Cisco employs an aggressive growth strategy that involves rapid acquisition and reliable heavy spending on R&D.

Cisco acquisition of Whiptail

Cisco has followed up its growing margins by acquiring Whiptail which is a massive privately held storage system maker. The price being quoted for the acquisition involves $415 million worth of cash and incentives with the acquisition expected to be fully completed in the first quarter of 2014. Whiptail basically manufactures storage systems made of flash memory chips that allow data to be transferred through servers reliably and at high speeds.

Cisco intends to use the acquisition of Whiptail as the base of extending its converged infrastructure by combining structures such as server’s data storage, networking equipment and software into a single component. Cisco undertook the new venture after thoughtful consideration according to its senior vice president of corporate development “We’ve known the company for some time and we’re actually an investor”

 Over the past year Whip tail has been estimated to be worth between $20 and $30 million with an employee base of about 80. It is seen as a profitable venture by many analysts who are of the opinion that Cisco might be entering into a $50 billion enterprise storage industry. This deal might have negative effects on Cisco relationship with its partners such as EMC and Net App according to Marshall “Cisco is clearly taking a more offensive stance now and will no longer completely rely on existing partners like EMC and NetApp for its enterprise storage solutions” With increase in sales and the acquisition of Whiptail, things can only get better for Cisco.

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