Stephen Simpson, CFA
Oct. 6, 2015, 12:44 PM
Oct. 6, 2015, 9:15 AM
Jul. 28, 2015, 1:14 PM
- In addition to missing Q2 estimates, Radware (NASDAQ:RDWR) guided on its earnings call for Q3 EPS of $0.23-$0.24, below a $0.26 consensus.
- CEO Roy Zisapel: "We were disappointed by our lower growth during the second quarter ... The Cisco-announced OEM agreement coupled with our existing OEM agreement with Check Point and our strong organic growth in our data center security business, clearly positions us for market leadership in this critical market segment. We plan to expand our security business and leverage our market position for sales and continuous profitability growth.”
- The application delivery controller/security appliance provider ended Q2 with $341M in cash/investments (equal to 41% of its market cap), and no debt. A $40M buyback was launched during the quarter.
- Larger ADC rival F5 delivered strong numbers last week.
- Q2 results, PR
Jul. 23, 2015, 2:56 PM
- Application delivery controller/security hardware vendor F5 (FFIV +6.9%) beat FQ3 estimates on the back of strong software sales, and provided above-consensus FQ4 EPS guidance (revenue was in-line). With growing 100G long-haul optical deployments serving as a tailwind, optical networking hardware vendor Infinera (INFN +9.6%) beat Q2 estimates and provided strong Q3 guidance.
- Also: Optical component vendor Alliance Fiber (AFOP +16%) beat estimates and offered healthy guidance. Strong datacom component demand from cloud service providers was cited.
- A slew of telecom/networking equipment, component, and chip vendors are higher on a day the Nasdaq is down 0.4%. The list includes Infinera rival Ciena (CIEN +1.6%), F5 rival Radware (RDWR +3.3%), and Alliance Fiber peer NeoPhotonics (NPTN +4.7%). Others include Ciena acquisition target Cyan (CYNI +1.8%) and chipmakers Cavium (CAVM +3.6%), PMC-Sierra (PMCS +3%), EZchip (EZCH +2.8%), and InPhi (IPHI +3.7%).
- Broader gains for chip stocks - the Philadelphia Semi Index is up 1.7% after selling off hard yesterday - are likely helping the chipmakers. Cisco, meanwhile, is up 2.2% after striking a deal to sell its share-losing set-top unit to Technicolor.
- During F5's earnings call, new CEO Manny Rivelo stated F5 now leads the virtual (software-based) ADC market, which has sometimes been seen as a major long-term threat to its ADC hardware business, and noted the company saw a 20% Y/Y increase in its deferred revenue balance (driven by services/subscription growth) to $743M. He also disclosed sales chief Dave Feringa is stepping down on Oct. 1; his successor will be named shortly.
- On Infinera's call, CEO Tom Fallon mentioned the company has now invoiced 12 customers for its new Cloud Xpress data center interconnect platform, up from 7 three months ago. For now, long-haul optical still makes up over 90% of revenue - Cloud Xpress growth, the pending launch of a metro aggregation product, and (provided it's approved) the Transmode acquisition should change that. 3 customers accounted for over 10% of Q2 revenue.
Jul. 6, 2015, 11:34 AM
- Meir Moshe, Radware's (NASDAQ:RDWR) CFO for more than 16 years, is stepping down. He'll be replaced by Doron Abramovitch, until recently the CFO of chip equipment maker Orbotech.
- Radware has sold off on a rough day for European and Israeli equities (follows a Greek "no" vote on austerity measures). The Tel Aviv 25 index is down 2.3%.
Jan. 28, 2015, 12:44 PM
Jan. 28, 2015, 10:53 AM
Jan. 21, 2015, 4:29 PM
- In addition to missing FQ1 revenue estimates (while beating on EPS), F5 (NASDAQ:FFIV) is guiding for FQ2 revenue of $465M-$475M and EPS of $1.48-$1.51, below a consensus of $478.9M and $1.53.
- CEO John McAdam: "In addition to the seasonal softness we normally experience in the first quarter of a new fiscal year, product sales during the quarter reflected a marked decrease in the number of deals greater than $1 million." However, he insists "the number of large deals in the current pipeline is encouraging and indicates [F5] should see a resumption of the recent trend toward larger deals in [FQ2]."
- FQ1 product revenue +10% Y/Y to $240.9M; services revenue +18% to $221.9M. Software revenue rose 44%.
- $750M has been added to F5's buyback authorization, raising its available funds to $930.7M. $150M was spent on buybacks in FQ1, boosting EPS.
- Smaller application delivery controller vendor Radware (NASDAQ:RDWR) is down 2% AH. Barclays' Jan. 14 downgrade of F5 was well-timed.
- FQ1 results, PR
Oct. 28, 2014, 2:29 PM
- In addition to soundly beating Q3 estimates, Radware (NASDAQ:RDWR) guided on its CC (transcript) for Q4 revenue of $59M-$61M and EPS of $0.25-$0.28, above a consensus of $58.4M and $0.24.
- CEO Roy Zisapel stated Radware is seeing strong demand for both its application delivery controller (ADC) and cybersecurity offerings. ADC sales have been boosted by strong uptake for the recently-launched Alteon NG platform, which (like some rival offerings) provides a slew of performance-optimization and security services to go with basic load balancing.
- ADC market leader F5 (NASDAQ:FFIV) is rallying ahead of tomorrow's FQ4 report. The Nasdaq is up 1.3%
Feb. 27, 2014, 9:42 AM
- First Solar (FSLR +5.8%) has been upgraded to Outperform by Baird a day after diving due to a Q4 miss and soft Q1 guidance.
- Cypress Semi (CY -5.3%) has been cut to Sector Perform by Pac Crest.
- Tibco (TIBX +2.2%) and Manhattan Associates (MANH +1.1%) have been started at Buy by B. Riley as part of a broader enterprise software coverage launch.
- Care.com (CRCM +5.8%) has been upgraded to Overweight by JPMorgan after selling off yesterday in response to its Q4 results.
- ChannelAdvisor (ECOM +2.9%) has been started at Outperform by William Blair.
- Radware (RDWR +2.3%) has been started at Outperform by Wedbush.
Dec. 11, 2013, 9:56 AM
- Ruckus (RKUS +2.9%) has been started at Buy by Craig-Hallum. Stephens started coverage at Overweight yesterday afternoon, Goldman upgraded shares to Buy on Dec. 2, and Stifel launched coverage at Buy on Nov. 27.
- Demand Media (DMD +9.3%) has been upgraded to Market Perform by JMP.
- Radware (RDWR +2.5%) has been upgraded to Outperform by Wells Fargo.
- E2open (EOPN +2.2%) has been started at Buy by Janney.
Nov. 18, 2013, 9:40 AM
- MercadoLibre (MELI -1.6%) has been cut to Underweight by Morgan Stanley, which cites Venezuela-related concerns. The company's forex accounting for Venezuela, which has seen massive inflation, has been sharply criticized. Shares were hammered two weeks ago following a Q3 miss.
- Ikanos (IKAN +10.2%) and Radware (RDWR +5.5%) have been upgraded to Buy by Needham.
- Maxim (MXIM +0.8%) has been upgraded to Buy by MKM.
- Synchronoss (SNCR -1.6%) has been cut to Neutral by Baird.
- Microchip (MCHP -1%) has been cut to Equal Weight by Stephens.
- ON Semi (ONNN -1.8%) has been cut to Neutral by MKM.
- Overland Storage (OVRL) has been started at Hold by Needham a few days after delivering mixed FQ1 results.
Sep. 24, 2013, 12:50 PM
- Several enterprise IT names are lower after Red Hat reported weaker-than-expected Aug. quarter billings and issued soft top-line guidance yesterday afternoon, and Red Hat, EMC (EMC -1.2%), NetApp (NTAP -0.5%), and F5 (FFIV -2.2%) were hit with downgrades this morning.
- Notable decliners include Citrix (CTXS -2.6%), VMware (VMW -1.9%), SolarWinds (SWI -2.1%), Teradata (TDC -2.1%), CommVault (CVLT -2.1%), and Radware (RDWR -2.4%). Red Hat partly blamed its performance on weak European demand.
- Barclays' Ben Reitzes suggests his downgrades of EMC and NetApp are partly valuation calls (both companies are near his PTs). But he adds "there may be more upside in networking names today" in light of "long-term headwinds to storage demand." The growth of cloud infrastructure platforms relying on commodity hardware (AWS being the most notable) is generally viewed as a threat to storage incumbents.
- William Blair cut NetApp to Underperform last week, raising concerns about executive departures, a flash memory-focused refresh to EMC's VNX mid-range storage line, and the Cisco-Whiptail deal.
- Goldman's Kent Schofield, who cut F5 to Neutral, says he thinks Street estimates now take into account F5's application delivery controller (ADC) refresh cycle and Cisco ADC displacements.
Jul. 12, 2013, 12:33 PMMore on Piper's upgrade of F5 (FFIV +3.1%): Analyst Troy Jensen joins William Blair's Jason Ader in reporting solid channel checks. Jensen's checks lead him to think FQ3 results (due on July 24) will be"at the upper end of guidance and above consensus," He also foresees F5 continuing its momentum in 2H, aided by new product launches, security strength, and pent-up service provider demand - soft telco bookings were partly responsible for F5's FQ2 warning. Application delivery controller rival Radware (RDWR +2%) appears to be rallying in sympathy. | Jul. 12, 2013, 12:33 PM
Apr. 25, 2013, 11:05 AMLight FQ3 guidance isn't stopping F5 (FFIV +5%) from rallying in the wake of its FQ2 report; expectations were depressed thanks to the April 4 warning. On F5's earnings call, management insisted enterprise demand is healthy ahead of a mid-range application delivery controller (ADC) refresh and an update to F5's TMOS OS, even as U.S. telco and federal demand remains weak. Strong momentum was also claimed for F5's firewall and 4G infrastructure offerings. Nomura has upgraded shares to Buy, arguing "the market may be overstating the competitive risks to F5" from Citrix (CTXS - previous). Up in sympathy: RDWR +4%. RVBD +4.8%. | Apr. 25, 2013, 11:05 AM
Apr. 5, 2013, 9:26 AM
Less than 24 hours after bigger rival F5 issued a March quarter warning, Radware (RDWR) has done the same. The application delivery controller/security hardware vendor says it expects Q1 revenue of $45M and EPS of $0.30, below a consensus of $49.2M and $0.42. Weak EMEA and Chinese sales are blamed; U.S. sales are said to be strong. Shares -16.8% AH. (PR)| Apr. 5, 2013, 9:26 AM