Oct. 2, 2013, 6:05 PM
- Deutsche's Brian Modoff says channel checks point to "a gradual pickup" in sales of F5's (FFIV) BIG-IP virtual application delivery controllers (ADCs), and that new features and software licensing model changes could be helping F5 halt share losses to Citrix's (CTXS) NetScaler virtual ADC line.
- Virtual ADCs - software that runs on 3rd-party servers - have been taking share from traditional ADC hardware. Meanwhile, Citrix has been growing its ADC share with the help of its Cisco partnership.
- Modoff considers F5's FQ4 (Sep. quarter) consensus "beatable," and also thinks a BIG-IP refresh and strong firewall sales could yield upside to FQ1 estimates.
- Long-term, Modoff is encouraged by F5's ability to benefit from the network functions virtualization (NFV) initiatives set to be launched by top carriers (migrates network management software to commodity servers), and growing IT interest in the company's full-proxy architecture for handling complex security needs.
- FQ4 results arrive on Oct. 23.
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.
Sep. 24, 2013, 10:11 AM
- Red Hat (RHT -12.3%) has been cut to neutral ratings by Piper and Pac Crest in the wake of its disappointing FQ2 billings data and mixed guidance.
- Storage giants EMC (EMC -1.7%) and NetApp (NTAP -1.2%) have been cut to Equal Weight by Barclays.
- F5 (FFIV -2.4%) has been cut to Neutral by Goldman.
- Rovi (ROVI +2.5%) has been upgraded to Buy by B. Riley.
- Microchip (MCHP +0.7%) has been upgraded to Buy by Goldman.
Sep. 17, 2013, 2:06 PM
- Looking to challenge Cisco (CSCO +0.3%), Check Point (CHKP +0.9%), and market leader Palo Alto Networks (PANW +1.1%) in the growing next-gen firewall (NGFW) hardware market, H-P (HPQ -0.4%) has launched its TippingPoint NGFW line. (PR)
- Five models are being offered, the most powerful of which offers 10Gbps of throughput. Palo Alto's high-end PA-5060 firewall offers 20Gbps of throughput. Though H-P plans to continue selling TippingPoint intrusion prevention (IPS) appliances, the functionality of its new hardware leads Gartner's Greg Young to view the latter as a replacement for the former.
- Young estimates NGFWs have grown to make up 15% of the $8B firewall market.
- H-P is also launching Threat Central, a cloud-based service that analyzes potential threats detected by the company's ArcSight security software.
- Consider the moves an escalation of H-P's rivalry with Cisco. Cisco is set to acquire IPS leader Sourcefire, which has also rolled out hardware that combines NGFW and IPS features, and recently formed a managed security services unit.
- Meanwhile, F5 (FFIV +0.8%) has acquired Versafe, a developer of online fraud protection software and a cloud-based monitoring service, for an undisclosed sum. F5 declares Versafe's products will complement its firewall and access/policy management hardware, as well as its mobile app management software.
- Versafe can already be integrated with F5's mainstay application delivery controllers. In a blog post discussing the deal, F5 argues the ongoing rise of remote/mobile file access increases Versafe's value.
- H-P and F5's moves comes amid growing corporate interest in cybersecurity, following well-publicized hacking events.
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%.
Aug. 12, 2013, 11:52 AM
- While upgrading F5 (FFIV +3.8%) to Overweight, Barclays' Ben Reitzes declares the application delivery controller (ADC) vendor to be in the "middle innings" of a rally set to last through year's end.
- Reitzes, who is raising his PT to $107 from $89, argues channel checks and positive earnings reports from peers bode well for F5. Cisco reports in 2 days.
- F5 took off 3 weeks ago in response to an FQ3 beat and strong FQ4 guidance. But shares still -4% YTD after tumbling in April thanks to an FQ2 warning.
- Smaller ADC rival Radware (RDWR +3.1%) is once more rallying in sympathy.
- Piper upgraded F5 prior to its FQ3 report.
Aug. 12, 2013, 9:38 AM
- F5 (FFIV +3.2%) has been upgraded to Overweight by Barclays.
- NetApp (NTAP +1.1%) has been upgraded to Neutral by Baird ahead of Wednesday's FQ1 report.
- T-Mobile USA (TMUS +1.2%) has been upgraded to Market Perform by Oppenheimer following last Thursday's Q2 report.
- Broadcom (BRCM -1.3%) has been cut to Neutral by Goldman.
- Juniper (JNPR -1.7%) has been cut to Sector Perform by RBC.
Jul. 25, 2013, 9:15 AM
Jul. 24, 2013, 4:31 PM
Jul. 24, 2013, 4:06 PM
Jul. 24, 2013, 12:10 AMNotable earnings after Wednesday’s close: AEM, AIZ, AKAM, AMCC, AMP, ANGI, ARII, ASGN, AVB, BDN, BIDU, CA, CAKE, CCI, CDNS, CLGX, CMO, CMRE, COG, CROX, CTXS, CYH, EFX, EGHT, EQIX, ETFC, FB, FBHS, FFIV, FLOW, FLS, FOE, FTNT, GGG, GPRE, HRC, IM, INFN, ITC, ITMN, KEX, LOGI, LSI, LVS, MLNX, MTSN, NFX, OI, OII, ORLY, PDH, PMTC, QCOM, RJF, RRC, RT, RYL, SCI, SGMO, SKX, SLG, SQNM, SRCL, SUSQ, SWFT, SYNC, TAL, TCBI, TER, TEX, TQNT, TRIP, TSCO, TWI, V, VAR, WCRX, WDC, WLL, WRE, WSH, XOOM, ZNGA | Comment!
Jul. 23, 2013, 5:35 PMNotable earnings after Wednesday’s close: AEM, AIZ, AKAM, AMCC, AMP, ANGI, ARII, ASGN, AVB, BDN, BIDU, CA, CAKE, CCI, CDNS, CLGX, CMO, CMRE, COG, CROX, CTXS, CYH, EFX, EGHT, EQIX, ETFC, FB, FBHS, FFIV, FLOW, FLS, FOE, FTNT, GGG, GPRE, HRC, IM, INFN, ITC, ITMN, KEX, LOGI, LSI, LVS, MLNX, MTSN, NFX, OI, OII, ORLY, PDH, PMTC, QCOM, RJF, RRC, RT, RYL, SCI, SGMO, SKX, SLG, SQNM, SRCL, SUSQ, SWFT, SYNC, TAL, TCBI, TER, TEX, TQNT, TRIP, TSCO, TWI, V, VAR, WCRX, WDC, WLL, WRE, WSH, XOOM, ZNGA | Comment!
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. | Comment!
Jul. 12, 2013, 10:20 AMA roundup of tech analyst ratings changes: 1) F5 (FFIV +2.8%) has received an upgrade to Overweight from Piper. 2) Yelp (YELP +4%) has been started at Buy by Needham. 3) 3) ServiceNow (NOW +4%) has been started at Strong Buy by Raymond James. 4) Quality Systems (QSII +7.9%) has been upgraded to Outperform by Baird. 5) Xilinx (XLNX +2.4%) has been upgraded to Buy by Citi. | Comment!
Jul. 11, 2013, 1:05 PMChecks indicate F5's (FFIV +5.4%) sales performance improved in FQ3, as deals pushed out from FQ2 managed to close, says William Blair's Jason Ader in a note lifting shares. F5 partly blamed deal push-outs on its April FQ2 warning. Ader cautions he thinks FQ3 product sales growth will be negative Y/Y, thanks to a slowing application delivery controller (ADC) market. F5 is counting on an ADC efresh and new mobile and security offerings to boost growth. Deutsche is also making positive comments on F5, stating the company is set up for "a multi-quarter product revenue ramp in next-gen security and telco." FQ3 results are due on July 24. | Comment!
Jul. 1, 2013, 9:22 AMA roundup of tech analyst ratings changes: 1) BlackBerry (BBRY) has been downgraded to Equalweight by Morgan Stanley. 2) Broadcom (BRCM) has been downgraded to Neutral by Lazard. 3) Marvell (MRVL) has been upgraded to Buy by Lazard. 4) F5 (FFIV) has been upgraded to Buy by Needham. 5) Avid (AVID) has been downgraded to Neutral by JPMorgan. 6) Solera (SLH) has been upgraded to Outperform by William Blair. BBRY -4.1%, adding to Friday's 27% drop. BRCM -0.6%. MRVL +1.4%. FFIV +2%. | 2 Comments
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F5 Networks Inc provides Application Delivery Networking (ADN) technology that secures and optimizes the delivery of network-based applications and the security, performance and availability of servers, and other network resources.
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