Sep. 18, 2013, 2:17 PM
- Piper's Troy Jensen has started coverage on Aruba (ARUN +2.8%) with an Overweight and $26 PT. The target is equal to 22x Piper's calendar 2015 op. income forecast (exc. cash).
- Jensen observes Gartner expects the Wi-Fi hardware market to post a 15.6% CAGR through 2017. He also argues Aruba's "broad portfolio of both controller and controller-less [Wi-Fi] technology, coupled with leading software solutions, will translate to further share gains in 2014."
- Jensen also thinks Aruba is "entering a period of easy comps and expanding margins."
- IDC estimates Aruba's enterprise Wi-Fi sales rose 13.6% Y/Y in Q2, slightly below market growth of 14.8% and good for an 11% share.
- Rival Ruckus (RKUS +3.5%), which was launched at Overweight by Piper in early July, is also trekking higher.
Sep. 11, 2013, 4:02 PM
- A number of tech names were volatile today in the wake of presentations from company execs at Deutsche's annual dbAccess Technology Conference (runs from Sep. 10-12).
- In addition to Trulia (previous), companies rallying following presentations include Aruba (ARUN +3.5%), Wipro (WIT +3.5%), QLogic (QLGC +3.1%), Informatica (INFA +1.4%), and SGI (SGI +1.1%). QLogic might also be getting a lift from a bullish Barclays coverage launch.
- Companies declining following executive presentations include Dangdang (DANG -4.9%), Medidata (MDSO -1.9%), Ruckus (RKUS -1.8%), and Demand Media (DMD -1.8%).
- Full conference schedule
Sep. 4, 2013, 3:01 PM
- Equipment vendors Adtran (ADTN +10.1%), Ruckus (RKUS +4.5%), Aruba (ARUN +2.5%), Ericsson (ERIC +2.2%), Procera (PKT +2.1%) and Calix (CALX +2.3%), and component/chip suppliers Oplink (OPLK +4.1%), NeoPhotonics (NPTN +2.3%), Alliance Fiber (AFOP +3.1%), AppliedMicro (AMCC +5%), and PMC-Sierra (PMCS +1.9%) have joined the ranks of names outperforming following Ciena's (CIEN +13.6%) strong numbers (fueled by strong demand for metro/edge networking hardware) and Juniper's upbeat conference comments about Q3 bookings and router demand.
- Ciena mentioned on its FQ3 CC U.S. orders were relatively strong (likely a sign of strong AT&T/Verizon spending), as North American carriers lead the way in adopting newer technology platforms (100G optical, integrated Ethernet/optical hardware, etc.), However, the company also claimed Europe is stabilizing, and that it's seeing new customer wins in Latin America/Asia.
- Ciena also touted its share gains, noting Heavy Reading calls it the leader in the fiber-based Ethernet access switch space, and that Dell'Oro ranks its first in the integrated Ethernet/optical market. However, it does look as if Ciena has lost some share in optical transport (revenue +15% Q/Q but -26% Y/Y). The company says new customer wins will lead transport growth to pick up.
Aug. 29, 2013, 10:33 AM
- Aruba (ARUN +1.7%) is supplying the Wi-Fi access points through which Google will provide high-speed Web access at 7K U.S. Starbucks stores.
- Aruba is effectively displacing Cisco (CSCO +1%), which provides the access points used by current Starbucks Wi-Fi partner AT&T.
- Meanwhile, IDC has estimated Cisco's enterprise Wi-Fi sales rose 16.7% Y/Y in Q2, outpacing market growth of 14.8% and leading the company's share to rise to 58.4% (up from 48.8% in Q1). Cisco reported 32% Y/Y July quarter growth for its Wi-Fi division (strong carrier Wi-Fi sales provided a boost).
- Aruba, battered earlier this year by bad earnings news and concerns Cisco's bundling efforts are taking a toll, is estimated to have seen 13.6% enterprise growth and held an 11% share. The company provided more encouraging numbers earlier this week.
- Ruckus (RKUS +0.1%), which gets a larger portion of its Wi-Fi sales from carriers, is believed to have seen its enterprise share rise to 5.5% in Q2 on the back of 37.3% growth.
Aug. 22, 2013, 5:33 PM
- Aruba (ARUN) guides on its CC for FQ1 revenue of $156M-$158M and EPS of $0.13-$0.14 vs. a consensus of $154.1M and $0.14.
- The enterprise/carrier Wi-Fi hardware vendor also says it thinks it can return to 20% Y/Y rev. growth in the second half of FY14 (ends July '14). Analysts currently expect Aruba to post just 11.1% growth for the whole of FY14.
- Shares haven't moved yet, but that could change.
- Aruba crashed earlier this year thanks to disappointing earnings/guidance that stoked fears the company was losing share to Cisco, which has increasingly been bundled its Wi-Fi hardware with other products.
- FQ4 results, PR
Aug. 22, 2013, 4:07 PM
- Aruba Networks (ARUN): FQ4 EPS of $0.12 beats by $0.01.
- Revenue of $153.1M beats by $3.77M. (PR)
Aug. 22, 2013, 12:10 AM
Aug. 21, 2013, 5:35 PM
Aug. 16, 2013, 5:23 PM
- 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.
Aug. 15, 2013, 6:16 PM
- H-P (HPQ -4.5%) fell sharply today thanks to Cisco's (CSCO -7.1%) light guidance and order data, and perhaps also some of the specific factors that went into the numbers.
- But shares are up 0.5% AH in response to Dell's revenue beat. The fellow IT giant reported a 5% Y/Y drop in PC division sales, and 8% growth in enterprise hardware sales.
- Cisco, which fiercely competes with H-P in the server and Ethernet switch markets, mentioned on its CC enterprise orders fell 2% Y/Y in FQ4, thanks to a 10% EMEA drop. SMB (+5%), public sector (+6%), and carrier (+6%) orders were healthier.
- Also, though Cisco's U.S. (+5%) and EMEA (+6%) orders were solid, Asia-Pac orders fell 3% Y/Y. H-P's Asia-Pac sales fell 12% Y/Y in the April quarter.
- Cisco's data center revenue rose 43% Y/Y thanks to continued share gains for its UCS servers, but that represented a slowdown from FQ3's +77%. Switching revenue +5% Y/Y, thanks to 20% growth for the Nexus data center switch line. Routing was flat in spite of 69% growth for the ASR 9000 edge router line (good for EZCH).
- Cisco Wi-Fi hardware rivals Aruba (ARUN -0.2%) and Ruckus (RKUS -0.4%) outperformed the Nasdaq. Cisco reported 32% Y/Y Wi-Fi hardware growth, a pickup from FQ3's +27%.
- More on Cisco
Aug. 14, 2013, 7:07 PM
- Nasdaq-100 futures (QQQ, XLK) -0.5% AH after Cisco provides relatively light FQ1 guidance to go with an FQ4 beat, and also reports Asia-Pac/Japan orders were down 3% Y/Y (macro is blamed).
- Networking/telecom hardware vendors and some of their suppliers are naturally the biggest decliners. Many of them have run up strongly this year on hopes of gradually improving carrier capex and enterprise IT spending. ALU -3.3% AH. JNPR -2.4%. ARUN -1.4%. FFIV -2%. ARRS -2.4%. RVBD -3.2%. JDSU -1.6%. FNSR -2.8%. CIEN -2.2%. CAVM -2%.
Jul. 31, 2013, 4:30 PM
- Ruckus' (RKUS) Q3 guidance is for revenue of $66M-$69M and EPS of $0.04 vs. a consensus of $67.6M and $0.04.
- Q2 beat fueled by 62% Y/Y EMEA growth. Americas +31%.
- 2.9K new enterprise end-customers added.
- Shares were crushed in May thanks to a Q1 miss and light guidance, leaving investor expectations low.
- Piper's bullish coverage launch and Needham's upgrade look smart.
- CC at 5PM ET (webcast)
- Enterprise/carrier Wi-Fi rival Aruba (ARUN), whose shares have also plunged, is up 0.7%.
- Q2 results, PR
Jul. 26, 2013, 4:24 PM
Rundown of notable positions closed by David Einhorn's Greenlight Capital during Q2: Dick's Sporting Goods (DKS) short position covered as the "introduction of sales tax on e-commerce" reduces threats to the business; Boston Properties (BXP) and Essex Properties Trust (ESS) short positions covered as Einhorn abandons an "ill-fated idea to short a bunch of REITs"; Aruba Networks (ARUN) short covered "for a nice gain"; CBS long position closed on valuation; Seagate Technologies (STX) long position closed after becoming "one of [Greenlight's] most profitable investments ever; Sprint (S) long position closed. (Also: Einhorn closes JCP short, MSFT long position)| Jul. 26, 2013, 4:24 PM
Jul. 18, 2013, 9:15 AM
Aruba (ARUN) +4.8% after William Blair says sales are rebounding in FQ4 (the July quarter). Expectations are low on account of the light guidance Aruba provided in May, and concerns about Cisco's efforts to bundle enterprise Wi-Fi hardware with other offerings. ($100M buyback plan)| Jul. 18, 2013, 9:15 AM
Jul. 15, 2013, 10:58 AM
Aruba (ARUN +3%) launches a new $100M buyback program to replace a similar program (launched in June '12) that was recently exhausted. The authorization is good for buying 5% of shares at current levels. It arrives with shares down sharply from their March highs thanks to May's bad earnings news (I, II).| Jul. 15, 2013, 10:58 AM
Jul. 11, 2013, 4:03 PM
Telecom equipment, chip, and component makers finish up strongly after Needham upgrades Finisar (FNSR +6%), Goldman upgrades Alcatel-Lucent (ALU +6.3%) and Adtran (ADTN +2.3%), and William Blair reports of positive F5 checks. Ciena (CIEN +10.1%), Riverbed (RVBD +4%), Calix (CALX +6.9%), Aruba (ARUN +5%), and JDS Uniphase (JDSU +3.6%), are among the top gainers. Needham says meetings with Finisar's chairman and CEO leave it impressed with the company's positioning and visibility. "Finisar seems more confident in its outlook than it’s been in a number of years." Goldman responds to Adtran's strong top-line results and guidance by declaring it "uniquely positioned to benefit" from a multi-year cable/DSL broadband infrastructure upgrade cycle. (previous)| Jul. 11, 2013, 4:03 PM | 1 Comment