C-COR Completes Acquisition of nCUBE,
Posts Disappointing Financials

C-COR has now completed its acquisition of privately held VOD and digital advertising technology provider, nCUBE, which was first announced October 20th. The deal was valued at approximately $89.5 million. C-COR says that it is now integrating nCUBE with its existing software business unit, C-COR solutions: as part of the integration, nCUBE co-founder, president and CEO, Mike Pohl, will become president of the software business unit. The deal will also see Oracle CEO, Larry Ellison, the majority shareholder in nCUBE, taking a seat on C-COR's board of directors.

According to C-COR, its purchase of nCUBE is part of a strategy to assemble through corporate acquisitions a series of product offerings--including optical transport equipment, operations support systems software and technical support services--with which it can address the rapidly emerging IPTV market. (Note: over the past year or so, the company has acquired transport specialists, Optinel and Lantern Communications; OSS company, Alopa Networks; and network management software specialist, Stargus.) The company anticipates that, in the 12 months following the closing of the deal, the nCUBE acquisition will add approximately $50 million to its net sales.

In other C-COR news, the company has posted financial results for its 2nd fiscal quarter, ended December 24th:

• Sales totaled $58.5 million, compared to $61.5 million for the year-ago
  quarter.

• Losses totaled $1.7 million, or $0.04 per share, compared to a profit of
  $29.7 million, or $0.78 per share, for the year-ago quarter. The consensus
  of Wall Street analysts had been that the company would break even.

• It expects fiscal Q3 earnings to range between a 4 cent-per-share loss
  and a 2 cent-per-share profit, on sales ranging between $70 million and
  $75 million. The consensus of Wall Street analysts had called for earnings
  of 5 cents per share on revenues of $71.9 million.