Procera Networks: Investment Surge Set To Yield Meaningful Profits
Helix Investment Research
Helix Investment Research
Apr. 27, 2015, 4:49 PM
- Procera Networks (NASDAQ:PKT): FQ1 EPS of -$0.03 beats by $0.07.
- Revenue of $20.5M (+41.0% Y/Y) beats by $3.49M.
Apr. 22, 2015, 12:45 PM
Apr. 22, 2015, 9:15 AM
Apr. 22, 2015, 8:08 AM
- Procera Networks (NASDAQ:PKT) +20% premarket after Francisco Partners Management agrees to buy the company for ~$240M; the P-E firm will pay $11.50/share for PKT, a 21% premium to yesterday's closing price of $9.51.
- PKT also says it sees Q1 revenues of $19.5M-$20.5M vs. $16.8M analyst consensus estimate, but expects to incur a Q1 net operating loss on a GAAP and non-GAAP basis; it is not revising its previously announced guidance for the full year.
Feb. 27, 2015, 5:23 PM
- In addition to beating Q4 estimates, Procera (NASDAQ:PKT) has guided for 15% 2015 revenue growth, well above a 4.8% consensus. Deutsche responded to the numbers by upgrading to Hold.
- The deep packet inspection hardware vendor added 13 new service provider customers in Q4, up from just 3 in seasonally weaker Q3 and down from 27 a year ago. 7 of the new customers were wireline carriers, 5 mobile carriers, and one a cable provider. Expansion orders were received from 50 existing service provider clients.
- EMEA made up 56% of revenue, the Americas 28%, Asia-Pac 16%. Mobile customers accounted for 56% of product revenue.
- Gross margin fell to 58.7% from 65.6% a year ago, and operating expenses rose 15% to $13.4M.
- With activists still circling, Procera ended Q4 with over $102M in cash/short-term investments (equal to 54% of its current market cap). TheDeal reported last month Procera has hired advisors to explore a potential sale.
- Q4 results, PR
Feb. 26, 2015, 4:14 PM
- Procera Networks (NASDAQ:PKT): Q4 EPS of $0.02 beats by $0.02.
- Revenue of $24.2M (+13.5% Y/Y) beats by $1.09M.
Feb. 25, 2015, 5:35 PM
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Jan. 27, 2015, 2:40 PM
- Citing the big rally shares have seen over the last month, Raymond James has downgraded Procera (NASDAQ:PKT) to Market Perform.
- Shares are now up only 3% from where they traded before TheDeal reported on Friday Procera had hired advisors to explore a potential sale. They're still up 27% from their last trade prior to a Jan. 7 guidance hike.
Jan. 23, 2015, 4:05 PM
- TheDeal reports Procera (NASDAQ:PKT) has hired advisors to help it explore a sale. Activist Merriman Capital has to be pleased.
- Though having jumped over the last two months in response to new contracts and a Q4 pre-announcement, the deep packet inspection hardware specialist remains far below a 2012 high of $25.99. Procera has nearly $5/share in cash/investments on its books.
Jan. 7, 2015, 12:45 PM
Jan. 7, 2015, 9:33 AM
- Following a rough 2014, Procera (NASDAQ:PKT) is starting 2015 on a strong note: The company says it expects to report Q4 revenue of $23.5M-$24.5M, above a $20.9M consensus. Non-GAAP EPS is expected to be positive (consensus is at -$0.01).
- Full-year revenue guidance has been upped to $74M-$75M from $70M-$75M. Q4 book-to-bill was above 1, and gross margin is expected to be around 60%.
- Fellow deep packet inspection hardware vendor Allot (NASDAQ:ALLT) is following Procera higher. Activist Merriman Capital has been pushing Procera to evaluate "strategic alternatives."
Jan. 7, 2015, 9:20 AM
Dec. 16, 2014, 12:19 PM
- Procera (NASDAQ:PKT) has "received several-million dollars of orders from Tier 1 operators" for versions of its high-end PacketLogic 20000 deep packet inspection hardware system featuring 100G interface cards.
- SVP Andy Lovit: "Network operators are beginning to deploy subscriber experience and analytics solutions on 100GE instead of 10GE interfaces, and the PL20000 has segment-leading port density and performance for 100GE networks." The product can support up to 8 ports (4 channels) of 100G traffic, and has a max throughput of 600Gbps.
- With shares down 57% YTD going into today, it's relatively easy for good news to trigger a positive reaction. A high short interest (17% of the float as of Nov. 28) also doesn't hurt.
Dec. 10, 2014, 10:09 AM
- Citing concerns about weak carrier spending and management departures, BofA/Merrill has downgraded Allot (NASDAQ:ALLT) to Underperform from Buy, and slashed its target by $6.50 to $10.50 (still ~$2.50 above current levels).
- Allot has plunged to new 52-week lows, and is now down 47% YTD. The company announced a CFO change last month.
- Deep packet inspection hardware rival Procera (NASDAQ:PKT) is also off.
Dec. 5, 2014, 1:21 PM
- Hedge fund Castle Union Partners now owns a 1.36M-share (6.6%) stake in Procera (NASDAQ:PKT), up from the 5.0% stake it reported in October. (13D filing)
- Back in October, Castle Union said it might talk with Procera about "business and strategic alternatives," including a potential sale.
- Another activist, Merriman Capital, issued an open letter on Oct. 20 calling on Procera to evaluate strategic options.
- The deep packet inspection hardware vendor's shares are down 55% YTD, following multiple earnings disappointments. With a current market cap of $136M, Procera wouldn't be hard for a bigger telecom equipment player to digest, should one be interested.
Nov. 3, 2014, 4:09 PM
- Procera Networks (NASDAQ:PKT): Q3 EPS of -$0.08 misses by $0.01.
- Revenue of $16.1M (-24.5% Y/Y) in-line.
Procera Networks Inc is a provider of Subscriber Experience Assurance solutions based on Deep Packet Inspection technology, that enable mobile and broadband network operators and enterprises managing private networks.
Industry: Business Software & Services
Country: United States
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