Gigamon Is An Underappreciated Cybersecurity Play
An Opportunity In The Huge Gigamon Sell-Off
Growth In Network Tools Creates A Rising Tide For Gigamon
Thu, Apr. 28, 5:35 PM
Thu, Apr. 28, 4:27 PM
Fri, Feb. 5, 3:59 PM
- Add Red Hat (RHT -8.1%), Autodesk (ADSK -6.9%), and Teradata (TDC -8%) to the list of enterprise tech firms nosediving following weak Q1/2016 guidance from business intelligence/data visualization software firm Tableau and professional social networking/online jobs leader LinkedIn. The Nasdaq is down 3.4%, and the S&P 2%, in the wake of this morning's jobs report.
- Other big decliners include Varonis (VRNS -13.4%), Gigamon (GIMO -9.7%), Pegasystems (PEGA -10.3%), SGI (SGI -7.5%), LogMeIn (LOGM -8.6%), inContact (SAAS -10.8%), Attunity (ATTU -14.4%), Textura (TXTR -6.8%), and Tableau rival MicroStrategy (MSTR -6.6%). A slew of other enterprise names were previously covered here - the group includes many cloud software and security tech firms.
- Teradata is just a day removed from rallying in the wake of a Q4 sales beat and healthy 2016 guidance.
Fri, Jan. 29, 8:20 AM
- Gigamon (NYSE:GIMO) is up 14.3% to $25.29 n premarket trading after soundly beating Q4 estimates and guiding on its earnings call (transcript) for Q1 revenue of $61M-$63M (+32% Y/Y at the midpoint) and EPS of $0.17-$0.19, above a consensus of $56.8M and $0.14.
- Top-line performance: Product revenue (drives future service revenue) rose 28% Y/Y in Q4, fueled by strong demand for Gigamon's mid-range GigaVUE-HC2 network visibility appliance and its GigaSECURE security delivery platform; the GigaSMART software platform also saw strong growth. Service revenue rose 38% to $20M. The Americas were 75% of revenue, EMEA 16%, and Asia-Pac 9%. 74% of bookings came from enterprises, 16% from service providers, and 10% from federal clients.
- Financials: Non-GAAP gross margin rose to 83% from 77% a year ago. Operating expenses rose 35% to $41.3M. Gigamon ended Q4 with $210.2M in cash and no debt.
- Gigamon's Q4 results, earnings release
Thu, Jan. 28, 5:38 PM
Dec. 11, 2015, 3:21 PM
- A long list of tech firms are off sharply as the Nasdaq and S&P respectively drop 2% and 2.2% ahead of an expected Fed rate hike.
- The casualty list includes threat-prevention hardware/software provider FireEye (FEYE -6.2%), machine data analytics software vendor Splunk (SPLK -7.1%), driver-assistance system vendor Mobileye (MBLY -6.3%), supercomputer makers Cray (CRAY -7.6%) and Silicon Graphics (SGI -7%), audio codec chipmaker Cirrus Logic (CRUS -5.3%), and local services marketplace Angie's List (ANGI -6.3%).
- Others include cloud HR/financials software provider Workday (WDAY -5.6%). enterprise social networking software firm Jive Software (JIVE -5.9%), cloud telematics software provider FleetMatics (FLTX -5.2%), mobile accessory maker Zagg (ZAGG -7.5%), network visibility/monitoring hardware provider Gigamon (GIMO -5.8%), smart grid networking hardware/software provider Silver Spring (SSNI -8.9%), and online travel deals provider Travelzoo (TZOO -6%).
Oct. 23, 2015, 12:46 PM
Oct. 22, 2015, 5:37 PM
Jul. 23, 2015, 6:48 PM
- In addition to beating Q2 estimates, Gigamon (NYSE:GIMO) has guided on its earnings call for Q3 revenue of $53M-$56M and EPS of $0.15-$0.18, favorable at the midpoints to a consensus of $53.5M and $0.15. However, with shares up over 3x from a 52-week low of $9.95, expectations were high.
- The network visibility/monitoring hardware vendor saw product revenue rise 55% Y/Y in Q2 to $34.8M, and service revenue 35% to $16.6M. Gross margin (non-GAAP) was flat Y/Y at 79%. GAAP operating expenses rose 15% to $40.1M.
- Shares have fallen to $30.50 AH.
- Q2 results, PR
Apr. 24, 2015, 12:45 PM
Apr. 23, 2015, 6:06 PM
- Gigamon (NYSE:GIMO) has guided on its Q1 CC for Q2 revenue of $48M-$51M and EPS of $0.11-$0.15, soundly above a consensus of $45.1M and $0.06.
- The network visibility/monitoring hardware vendor has surged to $26.80 AH, taking out a 52-week high of $24.12 along the way. William Blair's pre-earnings upgrade is looking good.
- Q1 results, PR
Apr. 23, 2015, 5:39 PM
Apr. 10, 2015, 9:27 AM
- Gigamon (NYSE:GIMO) has risen to $21.92 premarket on an upgrade to Outperform from William Blair. The 52-week high is $22.21.
- William Blair's call comes a month after Barclays upgraded to Overweight, and ahead of the network monitoring hardware vendor's April 23 Q1 report. Gigamon soared in January after soundly beating Q4 estimates and offering strong Q1 guidance.
Mar. 9, 2015, 9:52 AM
- Barclays has downgraded F5 (NASDAQ:FFIV) to Underweight, albeit while keeping its $114 target intact. Gigamon (NYSE:GIMO) has been upgraded to Overweight, with its target hiked by $5 to $26.
- The F5 downgrade follows a January plunge caused by a revenue miss and soft guidance. Wedbush offered a more positive take on the ADC/security hardware vendor last week, praising its diversification efforts, valuation, and ongoing mix shift towards software and software-based services. Software revenue rose 44% Y/Y in calendar Q4 (compares with 14% total revenue growth).
Feb. 12, 2015, 2:22 PM
- A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
- Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
- Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
- EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
- Earlier: Telecom/networking stocks rally thanks to Cisco
Jan. 30, 2015, 10:36 AM
- Gigamon (NYSE:GIMO) guided on its Q4 CC (transcript) for Q1 revenue of $40M-$43M and EPS of $0.01-$0.05, well above a consensus of $35.5M and -$0.03.
- The network visibility hardware vendor saw a 16% Y/Y Q4 increase in product revenue to $36.8M, and a 27% increase in services revenue to $14.5M. Enterprises accounted for 73% of revenue, service providers 14%, and federal 13%.
- Notably, enterprise bookings rose 68% Y/Y, and federal bookings 261%. Service providers bookings were up 17%. Customer count rose by 94 to 1,649, and the deferred service revenue balance rose by $11M Q/Q to $51.7M.
- The mid-range GigaVUE-HC2 appliance was a strong seller, with HC2 product family bookings doubling Q/Q. H-Series GigaSMART software licenses also saw strong growth.
- Q4 results, PR
Gigamon, Inc. designs, develops and sells products and services that together provide customers with visibility and control of network traffic. It serves global enterprises and services providers that seek to maintain and improve the reliability, performance and security of their network... More
Industry: Networking & Communication Devices
Country: United States
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