May 22, 2014, 4:10 PM
May 21, 2014, 7:06 PM
- The Information reports Google (GOOG +1.7%), in a fresh attempt to boost usage of the its services, plans to offer small/mid-sized retail businesses "heavily subsidized" Wi-Fi hardware/software; the businesses would have to pay for the actual Web access. Automatic login would be provided via the HotSpot 2.0 standard.
- No word on whether Google plans to use home-grown hardware, or a third party's. Aruba (ARUN +0.8%) is supplying access points for Google's Starbucks Wi-Fi deal (involves Web access, rather than subsidized hardware). Ubiquiti (UBNT -1.3%) is targeting the SMB Wi-Fi market with aggressively-priced products.
- Newly-acquired Nest Labs is recalling 440K Nest Protect smoke alarms/carbon monoxide detectors due to a glitch that can lead users to accidentally turn them off with a hand gesture. Nest halted sales of Protect due to the issue in April, and began work on a software update.
- In addition to declaring it needs $20B-$30B in foreign cash for M&A (possibly to appease regulators who want the funds repatriated/taxed), Google's December letter to the SEC (just published) raised eyebrows by stating the company might one day serve ads on "refrigerators, car dashboards, thermostats, glasses, and watches, to name just a few possibilities."
- However, Google has responded to the uproar by stating the remarks don't reflect its current product roadmap, and that's "in contact with the SEC to clarify the language" in the filing.
May 21, 2014, 5:35 PM
May 14, 2014, 6:10 PM
- Cisco (CSCO) expects FQ4 EPS of $0.51-$0.53 vs. a $0.51 consensus. In spite of posting an FQ3 gross margin of 62.7%, the company is only guiding for an FQ4 GM of 61%-62%.
- John Chambers once more states Cisco is seeing price pressure in markets such as campus switching (Huawei and H-P are competing aggressively here), but insists SDN (generally seen as a 2015-and-later problem) isn't a factor. Switching, emerging markets, and carrier sales are expected to stay pressured near-term.
- Though GAAP opex fell 2% Y/Y, non-GAAP opex fell 6% (boosted EPS). Headcount declined by 230 Q/Q to 73.8K.
- Data center (UCS server) sales remain strong, growing 29% Y/Y (share gains against Dell/H-P/IBM). Likewise, service provider video sales (-26%, set-top share loss to ARRS) remain weak.
- Wireless sales only rose 3% (possible share loss to the likes of ARUN, UBNT, and HIVE), but orders rose 12%, and Meraki continues seeing strong user growth. Recently-acquired Sourcefire saw orders grow 20%.
- Cisco says its new ACI/Nexus 9000 SDN/networking virtualization platform (praised for its feature set, but not for its pricing) gained 175 customers, and has a pipeline of 1K+.
- More on Cisco's earnings
May 9, 2014, 4:26 PM
- Enterprise/carrier Wi-Fi vendors Aruba (ARUN -3.2%) and Ruckus (RKUS -4%) each had a rough day after Ubiquiti disclosed its enterprise sales rose only 1% Q/Q in the March quarter (following several quarters of strong growth), and blamed it on mix/ASP pressure for its UniFi Wi-Fi hardware line - in particular, stronger sales for cheaper 802.11n systems relative to more powerful 802.11ac systems.
- Ruckus, more carrier-dependent than Aruba, rallied last week on a Q1 beat and solid guidance. Nonetheless, shares fell to new 52-week lows today. Aruba reports on May 22, and enterprise Wi-Fi leader Cisco on May 14.
- The companies are counting on rising carrier Wi-Fi deployments, aided by the adoption of the HotSpot 2.0 standard (enables automatic network discovery/login), to help drive growth. ABI Research forecasts hotspot deployments will grow to 7.1M in 2015 from 4.2M in 2013, fueled by strong Asia-Pac activity.
Apr. 14, 2014, 7:07 PM
- An April Barclays survey of 100 U.S. and European CIOs found 46% expecting their company's IT spending to rise in 1H14, 20% expecting it to drop, and 34% expecting no change. Those figures compare with September survey levels of 43%, 27%, and 30%.
- Moreover, IT spending growth is seen accelerating in 2H in both the U.S. and Europe. Barclays thinks larger budgets, macro stabilization, and a need for equipment refreshes (due to high utilization rates) could be helping out.
- At the same time, the firm cautions the spending growth is uneven: Software, networking, security, and cloud services demand is healthy, but servers, storage, and IT services remain soft. Interest in the concept of a software-defined data center is gaining traction, but big data (hyped considerably last year) is losing it for now.
- Gartner has forecast IT spending will rise 3.2% this year to $3.77T after growing just 0.4% in 2013. Enterprise software (+6.9% to $320B) is expected to lead the way.
- Barclays thinks its survey bodes well for H-P (HPQ), Juniper (JNPR), F5 (FFIV), Aruba (ARUN), Ingram Micro (IM), and CDW, each of which is rated Overweight.
- Others that might take heart in the survey results: CSCO, ORCL, SAP, CA, SWI, VMW, CHKP, BRCD, ARW, AVT
Apr. 4, 2014, 9:43 AM
- ServiceNow (NOW +0.9%) has been upgraded to Overweight by Evercore. Shares fell 11% yesterday as part of a brutal selloff in high-beta enterprise tech names.
- Aruba Networks (ARUN +2.9%) has been started at Outperform by Northland as part of a networking hardware sector launch.
- Barracuda Networks (CUDA +3.2%) has been started at Outperform by Imperial Capital.
- Hollysys Automation (HOLI +0.4%) has been started at Outperform by Credit Suisse.
Mar. 10, 2014, 5:37 PM
- As is the case with enterprise/carrier Wi-Fi rival Ruckus Wireless, Bernstein is launching coverage on Aruba Networks (ARUN) with an Underperform. The firm's PT is $14, 36% below current levels.
- On the other hand, Bernstein has started coverage on Ubiquiti (UBNT) with an Outperform and $65 PT (38% above today's close). Uiquiti also competes in the enterprise Wi-Fi space (its solutions are generally SMB-focused), but the majority of its sales come from other types of wireless networking systems.
- ARUN -0.7% AH
Feb. 21, 2014, 9:14 AM
Feb. 20, 2014, 5:41 PM
- Aruba Networks (ARUN) expects FQ3 revenue of $178M-$182M and EPS of $0.19-$0.20, largely favorable to a consensus of $174.6M and $0.19. The company has also announced a new $200M buyback authorization, and says the $200M authorized in October has been spent. Shares +4.8% AH. (FQ2 results, PR)
- Marvell (MRVL) expects FQ1 revenue of $870M-$910M and EPS of $0.20-$0.24 vs. a consensus of $848.9M and $0.21. Shares -2.6% AH. (FQ4 results, PR)
- Maxwell (MXWL) expects Q1 revenue to be "flat to slightly up" in Q1 from a Q4 level of $39M. The Q1 consensus is at $39.2M. Shares -7.2% AH. (Q4 results, PR)
- QLIK expects Q1 revenue of $110M-$114M and EPS of -$0.14 to -$0.12, vs. a consensus of $113.2M and -$0.05. Full-year guidance is for revenue of $545M-$555M and EPS of $0.23-$0.27 vs. a consensus of $550.4M and $0.41. Shares +1% AH. Expectations have been muted. (Q4 results, PR)
Feb. 20, 2014, 4:13 PM
Feb. 20, 2014, 12:10 AM| 2 Comments
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Feb. 14, 2014, 1:05 PM
- Aerohive Networks, provider of a line of Wi-Fi and wired networking gear and related software/services, has filed for a $75M IPO under the symbol HIVE. Goldman, BofA/Merrill, Piper, William Blair, and JMP are underwriting.
- Much like Cisco's Meraki unit (acquired for $1.2B), Aerohive's hardware is backed by a cloud-based management/services platform meant to lower admin costs and simplify installation, as well as deal with the growing number of user-purchased laptops and mobile devices attempting to access corporate networks thanks to the BYOD trend.
- Aerohive also competes against Aruba Networks (ARUN +0.5%), which offers its Aruba Central platform to buyers of its enterprise Wi-Fi access points wanting a cloud-based management solution.
- Over the first nine months of 2013, Aerohive had revenue of $76.9M (+53% Y/Y), and a net loss of $25.4M. Sales/marketing spend totaled $42M.
Feb. 12, 2014, 5:29 PM
- Cisco (CSCO) guides on its CC for FQ3 EPS of $0.47-$0.49, in-line with a $0.46 consensus. The company also reiterates FY14 EPS guidance of $1.95-$2.05 (consensus is at $1.98).
- However, the networking giant adds its orders fell 4% Y/Y for the second quarter in a row. The main culprits: Switch orders fell 6%, router orders 5%, and (thanks to plunging set-top sales) service provider video orders 20%.
- Switch sales (39% of product revenue) fell 12% Y/Y in FQ2, and router sales (21% of product revenue) fell 11%. SP video fell 22%, and collaboration (videoconferencing, WebEx) 7%; the latter could be a negative for Polycom (PLCM).
- Data center (UCS server) revenue only rose 10% after growing 44% in FQ1. However, Cisco asserts orders growth was in the mid-30s range. Wireless (dominated by Wi-Fi), another growth area in recent quarters, fell 4%. Aruba (ARUN) -2% AH in response.
- Americas orders -5%, EMEA -2%, Asia-Pac -5%. Enterprise -2%, SMBs and public sector +1% each.
- CSCO now -3.8% AH.
- More on Cisco
Jan. 15, 2014, 5:39 PM
ARUN vs. ETF Alternatives
Aruba Networks Inc provides enterprise mobility solutions. It develops, markets and sells products and services designed to solve its customers' secure mobility requirements through its Mobile Virtual Enterprise (MOVE) architecture.
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