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Cisco To Aquire Luxtera for $660 Million

Daniel Chase

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For quite some time, the challenge for data engineers and scientists in the field was to design technology that would allow for more data to be stored by companies, and subsequently consumers. I remember when a 256mb flash drive, about one-fourth of a gigabyte, cost $40 at every office supply store, but this would soon change. Nowadays, the amount of data stored on global networks and $40 flash drives is increasing at an aggressive rate. In terms of storage, we’re way past the point of storing data gigabyte by gigabyte, we’ve ascended to needing to support petabytes (1000^5 bytes) and exabytes (1000^6 bytes). With all this data flying around, the question is no longer can we store the information, but rather can our network equipment transmit the data we use over distances, and who can engineer devices that expedite this process? 

If I’ve already lost you amid the sea of tech jargon, bare with me. When you send an email containing a file (photo, excel spreadsheet, document), it usually takes longer the more data you try to send off, because the computer is compressing all that data into a format that will fit on the email. Presently, network equipment manufacturers are trying to increase data transmission speeds to get your email, chock full of large files and data, where it needs to go in as seamless a process as possible. This need for faster data transmission via network solutions has grown into a sub-sect of the tech industry that investors in the space have shifted their much of their attention towards, leading companies in the space to look into acquisitions to make themselves more competitive in the market. 

Already a leader in the networking equipment department of the tech sector, Cisco (CSCO), over the last several months, has explored several options for finding a solution for the world’s growing data networking issues, ultimately deciding that an acquisition would be the best course of action. On Tuesday, Cisco (CSCO) announced its intent to acquire Luxtera, Inc for $660 million in an all-cash deal.  

“Our customers are looking to address the unrelenting demand for more bandwidth driven by an emerging class of distributed cloud, mobility, and IoT applications. That’s why today we announced our intent to acquire Luxtera, Inc., a privately held semiconductor company that uses silicon photonics technology to build integrated optics capabilities for web-scale and enterprise data centers, service provider market segments, and other customers. Luxtera’s technology, design, and manufacturing innovation significantly improves performance and scale while lowering costs.” 

Rob Salvagno, Vice President for Corporate Business Development, Cisco 

Simply put, photonics use light to move large chunks of information (data) at faster speeds over further distances through the use of fiber optic cables. Even more simply put, Cisco (CSCO) acquired Luxtera because their photonics technology will help Cisco (CSCO) and its customers efficiently transmit large amounts of data. Typically other equipment is needed to turn light (photons) from fiber optics cables into the electronic signals needed to run computers, but Luxtera told several media sources that designing and manufacturing a high volume of chips that can accomplish this task will be fairly simple. 

Cisco (CSCO) has been struggling recently to stay relevant in the tech sector as the industrywide trend towards open-source software and technologies have become the new normal. As one of the leading manufacturers of physical hardware for networking, Cisco’s (CSCO) investment into Luxtera will hopefully give the company a competitive edge in a market which is hot for sleek, efficient, and cheap data transmission solutions. 

“While much of the recent focus has been on our software transition, it goes without saying that world-class hardware, it goes without saying  that world-class hardware, coupled with our investment in silicon and optics, is at the hear of our Intent-Based Networking strategy…”

Rob Salvagno, Vice President for Corporate Business Development, Cisco 

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Netflix (NFLX) Stock Price Soars On Robust Q3 Earnings: What’s Next?

Joe Samuel

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Netflix Inc (NASDAQ:NFLX) is quite impressed with its third-quarter earnings. The unveiled report indicates a 7% rise in the pre-market session. This time around, it was a case scenario of mixed results. This comprised of a rise in earnings and what the company has been quick to term a drop in domestic subscriber adds. Business analysts had earlier made their projections but it is clear they were wrong this time around.

A close outlook into the earnings

The third-quarter revenues rose to about $5.3 billion which according to analysts was representative of a 10% year-over-year growth. Analysts have been trying to explain how the company achieved these results. They pointed out to the streaming paid memberships that accounted for up to a year-over-year increase of about 19.2%.

Sources indicate that the business guru was able to add 6.8 million paid streaming members in its third quarter. This was impressive and at the same time promising at this point when business dynamics keep shifting from time to time. Market observers who had taken a close look at the company’s Q2 in 2018 were quick to congratulate Netflix for the uptick. During the time, the business giant had about 2.7 million paid streaming members. It is also worth noting that in the Q3 of 2018 the company succeded at adding 6.1 paid steaming members.

Market changes

Netflix is doing well overall, but that doesn’t mean it doesn’t have any cause to worry. The modern time markets are undoubtedly very dynamic. Reports indicate that competition in this company’s streaming space may be escalating anytime soon. There have been instances of this streaming giant speaking out on the competitive environment out there.

Most of the investors have been following such talks keenly in a bid to see what works best for them. The competition expected to move into this space includes companies such as Apple Inc (NASDAQ:AAPL) and Walt Disney (NYSE:DIS). Investors look forward to seeing Netflix unveil its quarterly update. This will allow them to understand the management’s take on the moving in of the latest competitors.

The management acknowledges that indeed it is going to be tough with the entry of the business giants. However, the company will be counting on its large market opportunity and the strength of its service delivery.

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Liberty Defense (SCAN) (LDDFF) Signs University of Wisconsin to Test HEXWAVE

Joe Samuel

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MADISON, WI and VANCOUVER, Oct. 17, 2019 /PRNewswire/ – Liberty Defense Holdings Ltd. (“Liberty”) (TSXV: SCAN; FRANKFURT: LD2; OTCQB:LDDFF), a leading concealed weapons detection solutions company, is announcing that it has signed a collaboration agreement (“CoA”) with the University of Wisconsin Police Department (“UWPD”) to beta test HEXWAVE on campus.

UW-Madison is known as one of the top universities in the country, and is the oldest and largest public university in the state of Wisconsin. The UW’s academic and athletic success attracts tens of thousands to the campus each year.

HEXWAVE uses 3D radar imaging and artificial intelligence, primarily to detect and identify weapons, as well as other threats and anomalies without obstructing the movement of large groups of people. HEXWAVE enables the implementation of a layered defense strategy, which provides security teams with more time to manage threats by detecting them at the perimeter of a property.

“It is a privilege to work with the University of Wisconsin and its Police Department, such a well-established and respected education institution,” said Bill Riker, CEO of Liberty Defense. “We are looking to expand our understanding of the needs of educational environments, including open campuses. We are proud to have the opportunity to contribute and draw upon the Department’s expertise.”

Universities are a major category in the public venues market vertical, making this partnership key for Liberty’s continued development of HEXWAVE.

“The security of our campus is, of course, a top priority,” said Kristen Roman, Chief of Police at UW-Madison. “We are excited to have the opportunity to be the first campus to test this new technology. We understand how important it is for organizations to keep innovating when it comes to security and we look forward to kicking off the testing in 2020.”

This beta testing phase is a key part of HEXWAVE’s development process. Testing the system in operational and diverse facilities can help to ensure that it is aligned to market requirements. Beta testing is expected to begin later in 2019 and progress into 2020. Liberty will also beta test HEXWAVE at FC Bayern Munich’s Allianz Arena in Germany, Rogers Arena in Vancouver, British Columbia, Maryland Stadium Authority’s Camden Yards Complex, in the state of Utah, with the Virginia Division of Capitol Police, in Sleiman shopping centers, in a Hindu temple, in the Metro Toronto Convention Centre, and in Toronto Pearson International Airport.

On Behalf of Liberty Defense
Bill Riker
CEO & Director

About Liberty Defense
Liberty provides security solutions for concealed weapons detection in high volume foot traffic areas and has secured an exclusive license from Massachusetts Institute of Technology (MIT), as well as a technology transfer agreement, for patents related to active 3D radar imaging technology that are packaged into the HEXWAVE product. The system is designed to provide discrete, modular and scalable protection to provide layered, stand-off detection capability. This is intended to provide a means to proactively counter evolving urban threats. The sensors with active 3D radar imaging and Artificial Intelligence (AI)-enhanced automatic detection are designed to detect metallic and non-metallic firearms, knives, explosives and other threats. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions. Learn more: LibertyDefense .com

About the University of Wisconsin (UW)
UW is a public research university in Madison, Wisconsin. Founded when Wisconsin achieved statehood in 1848, UW is the official state university of Wisconsin, and the flagship campus of the University of Wisconsin System. It was the first public university established in Wisconsin and remains the oldest and largest public university in the state.

FORWARD-LOOKING STATEMENTS

When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although Liberty believes, in light of the experience of their respective officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in the forward-looking statements and information in this press release are reasonable, undue reliance should not be placed on them because the parties can give no assurance that such statements will prove to be correct. The forward-looking statements and information in this press release include, amongst others, information relating to the expectation of future CoAs and validation of technology. Such statements and information reflect the current view of Liberty. There are risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and Liberty Defense Holdings Inc. Midam was hired for a period from 06/1/2019 – 9/30/2019 to publicly disseminate information about Liberty Defense Holdings Inc. including on the Website and other media including Facebook and Twitter. We were paid $250,000 (CASH) for & were paid “0” shares of restricted common shares. We may buy or sell additional shares of Liberty Defense Holdings Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Click Here For Full Disclaimer.

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How Will Microsoft (MSFT) Stock Price Perform After Latest News?

Jon Phillip

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Microsoft Corporation’s (NASDAQ:MSFT) shares jumped after the company reported an impressive fourth quarter. Investors will now be looking forward to the first quarter updates in the next two weeks. Microsoft has seen its stock gain 38% since the beginning of the year. It has a market cap of $1.07 trillion and a price multiple of 28.

Special Report: Are These Weapons Detection & Defense Stocks On Your October Watch List?

The company managed to put in a strong performance because of the growing cloud business. Microsoft’s cloud revenue has significantly increased in recent times substantially contributing to the company’s revenue growth. Here is what investors will be keen on when the company releases its Q1 results next week:

Revenue Growth

In Q4 the company’s YoY revenue grew by 12% surpassing analyst estimate. Although it did beat analysts’ expectations it slowed compared to Microsoft’s Q3 revenue growth that was 14%.  When the company reports its Q1 results investors should be keen on top-line growth on whether or not it will continue slowing. Management outlook for the quarter indicates that Microsoft expects its revenue growth to slow down in the first quarter.

According to Microsoft CFO Amy Hood, they expect Q1 revenue to range from $31.7 to $32.4 billion. The midpoint of the projection indicates that growth will be around 10.1%. On average analysts expect revenue to be around $32.2 billion in the quarter.

Commercial Cloud Revenue

The company has generated significant revenue from its cloud business. The cloud business offers Azure, Office 365 commercial and Dynamics 365 which have been vital to the company. Microsoft saw its YoY revenue from cloud-based business grow by 39%in the fourth quarter to $11 billion.

The segment has seen its gross margin expand fast in recent times growing from 57% last year to 63% in FY2019. Gross margin form the cloud-based businesses in Q4 was around 65% relative to59% reported Q4 2018

The commercial cloud segment is growing rapidly and considering its gross margin is expanding the segment will be vital to Microsoft’s earnings growth in FY2020.

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