Seeking Alpha

Ruckus rallies; William Blair encouraged by management talks

  • William Blair's Jason Ader, who is reiterating an Outperform, says meetings with Ruckus' management left his firm with "increased confidence" in Ruckus' (RKUS +2.7%) medium/long-term ability to benefit from growing carrier Wi-Fi deployments.
  • Ader thinks carrier Wi-Fi is turning into a two-horse race involving Ruckus and Cisco (Aruba, Alcatel-Lucent, and Ericsson also compete), and that Ruckus is gaining enterprise Wi-Fi share. He also sees adoption of the Hotspot 2.0 standard (enables automatic discovery/login for carrier and public Wi-Fi networks) acting as a 2014 catalyst.
  • Ruckus and rival Aruba (ARUN +0.7%) outperformed yesterday after Cisco (CSCO -0.9%) reported its Y/Y Wi-Fi hardware growth accelerated in the July quarter. Cisco also mentioned on its CC its recently-acquired Meraki enterprise Wi-Fi unit (a major Aruba rival) saw 100%+ Q/Q order growth, and is now on a $250M+/year order run rate.
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Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1311) | Send Message
     
    If RKUS have some good news to share they should provide better guidance publicly. This stuff about them talking privately to an analyst and then the analyst giving vague positive news is bs.

     

    Currently, RKUS results and guidance do not justify the crazy valuation.
    16 Aug 2013, 05:50 PM Reply Like
  • alpine
    , contributor
    Comments (1620) | Send Message
     
    Indeed, having listened to the last earnings conference call, I came away with the impression that the CEO and her team were doing their best to be evasive about the rapidly rising competitive landscape in their previously self-beholden "turf", Wi-Fi and small cell networking technology.

     

    I suspect the recent Alcaltel-Lucent/Qualcomm technology alliance, as well as forays by Cisco (and ARUN, FFIV, etc) are major competitive threats to Ruckus. Small cell technology rests at the "core" of LTE (and beyond), therefore it is too valuable a business opportunity for these big players with deep roots in corporate, government and incumbent telcos to not to make a complete ruckus of RKUS.
    18 Aug 2013, 06:30 AM Reply Like
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