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Cisco owns 8.5% of little known IPO Mavenir Systems (MVNR)

It turns out that one of the beneficiaries of the IPO earlier this week of a little known mobile infrastructure solutions vendor for LTE operators, Mavenir Systems (MVNR), was none other than Cisco which now owns 2,034,299 shares (8.5%) of Mavenir after the IPO.

Hummelstown, PA:   Sat, 11/9/13 - 11:59pm    View comments
 

It turns out that one of the beneficiaries of the IPO earlier this week of a little known mobile infrastructure solutions vendor for LTE operators, Mavenir Systems (MVNR), was none other than Cisco which now owns 2,034,299 shares (8.5%) of Mavenir after the IPO.
 

Here's how Cisco's Mavenir is transforming mobile networks

Financial results of Cisco's Mavenir operations

Interestingly, Mavenir states (page 19):

"Our reseller agreement with Cisco Systems, our most significant sales channel by revenue, accounted for approximately 70%, 47% and 35% of our total revenue for the years ended December 31, 2010, 2011 and 2012, respectively, and 37% of our revenue for the six months ended June 30, 2013."

Mavenir continued (page 142):

"During 2012, 2011 and 2010, we earned $25.7 million, $23.3 million and $5.8 million in revenues under the Reseller OEM Agreement with Cisco, respectively."

The Cisco Mavenir IPO offering was priced at $10.00 per share for 5,450,000 shares on Thursday, November 7, 2013. The opening price was $11.50 per share and went as high as $12.00 per share Thursday.

However most forebodingly, Cisco's Mavenir stock closed down the next trading day, Friday, at $9.25 per share, that's a -22.91% "haircut" from Thursday's high giving Cisco's Mavenir a stock market cap of $213.8 million on a company that has grown revenues +20.62% during the first 6-months of 2013 vs. 2012.

Related document:

Mavenir's final prospectus
 

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