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Cisco challenger Arista files for IPO; S-1 shows strong growth, profits

  • Arista Networks, a maker of low-latency/high-density Ethernet switches aiming to upend Cisco's (CSCO +0.8%) dominant data center market position, has filed for a $200M IPO under the symbol ANET. Morgan Stanley and Citi are the lead underwriters.
  • Arista's S-1 reveals the company had 2013 revenue of $361.2M (+87% Y/Y), and net income of $20.8M. Analysts previously estimated Arista's 2013 sales would be above $300M, and that the company could see a $2.5B IPO valuation. Opex rose 87% Y/Y to $172.4M.
  • In addition to port densities and latency, Arista's hardware is differentiated through the use of a modular, Linux-based OS (EOS) built to handle the needs of massive data centers, and capable of interacting with software from VMware (previous), Microsoft, and others.
  • Like Cisco, the rise of software-defined networking (SDN) platforms supporting commodity hardware pose a challenge to Arista. Also like Cisco, Arista has been trying to address the issue in part by making its switches more programmable (via APIs).
  • Om Malik, writiing about Arista in 2011: "There are many parallels between Arista and Juniper. Both of them are taking on Cisco Systems in its core businesses ... Both of them picked a “niche” instead of taking on Cisco head-on.  Both companies wrote their own network operating systems ... Both companies bet on industry defining megatrends."
  • ETF: IPO
Comments (5)
  • haleiwahu
    , contributor
    Comments (3449) | Send Message
     
    I would think Linksys would also be in this battle
    31 Mar, 11:23 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    Linksys competes on the low-end. Their products are mostly bought by consumers and SMBs.
    31 Mar, 11:25 AM Reply Like
  • Mo Money 2011
    , contributor
    Comments (47) | Send Message
     
    besides, Linksys is owned by Cisco. I'd be interested in input from any tech-saavy investors.
    31 Mar, 03:12 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    Used to be. Cisco sold Linksys to Belkin last year.

     

    http://seekingalpha.co...
    31 Mar, 03:31 PM Reply Like
  • haleiwahu
    , contributor
    Comments (3449) | Send Message
     
    It wasn't too many years ago that CSCO was considered dead money.
    6 Apr, 12:18 PM Reply Like
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