Thu, Apr. 30, 5:39 PM
- In addition to missing Q1 estimates, Ruckus (NYSE:RKUS) has guided for Q2 revenue of $86M-$91M and EPS of $0.07-$0.10, mostly below a consensus of $90.7M and $0.10.
- The carrier/enterprise Wi-Fi hardware vendor blames states Q1 sales were "impacted by several large enterprise deals in North America taking longer to close, and continued delays in education spending in advance of the upcoming release of E-Rate funding." Peer Aerohive has also reported seeing E-Rate-related issues.
- Ruckus is counting on the adoption of 802.11ac Wave 2 Wi-Fi access points - the company asserts it was the first to announce one - and the recent hiring of Ian Whiting as sales chief to provide a lift going forward. 19 new service provider clients and 3,700 new enterprise end-customers were respectively added in Q1, bringing the bases to "over 220" and ~52K.
- Shares have fallen to $11.20 AH.
- Q1 results, PR
Thu, Apr. 30, 4:10 PM| 1 Comment
Thu, Feb. 12, 11:03 AM
- Cisco (NASDAQ:CSCO) beat FQ2 estimates on the back of 8% Y/Y product growth (aided by favorable comps), offered in-line guidance (better than feared, given forex pressures), and reported a 5% increase in product orders. Enterprise, SMB, and public sector orders respectively rose 10%, 8%, and 7%, and service provider orders dropping 1% (compares with a 10% FQ1 service provider drop).
- Cisco still isn't modeling a rebound in service provider or emerging markets demand for several quarters, and forecasts global service provider capex will be down by a mid-single digit % in 2015. But it's more optimistic about enterprise, public sector, U.S., and EMEA demand.
- Telecom and networking equipment vendors, many of whom have been hit hard by capex pressures, are rallying following Cisco's numbers, as are a couple of component/chip suppliers. The Nasdaq is up 0.7%.
- Notable gainers include Alcatel-Lucent (ALU +4.7%), Aruba (ARUN +3.4%), Ruckus (RKUS +5.1%), Sonus (SONS +3.4%), Extreme Networks (EXTR +3.4%), Brocade (BRCD +1.9%), Adtran (ADTN +3%), Infoblox (BLOX +2.7%), Finisar (FNSR +2.1%), Cavium (CAVM +2%), Ixia (XXIA +1.9%), and Mavenir (MVNR +3.4%).
- Cisco's 18% Y/Y wireless product sales growth appears to be going over well with Aruba and Ruckus investors, and its 11% switching growth with Extreme and Brocade investors.
Tue, Feb. 10, 5:41 PM
- In addition to missing Q4 revenue estimates (while posting in-line EPS), Ruckus (NYSE:RKUS) is guiding for Q1 revenue of $84M-$87M and EPS of $0.08-$0.09, below a consensus of $89.9M and $0.11.
- 14 new service provider end-customers were added in Q4, down from 20 in Q3; the base is now above 200. ~4K enterprise end-customers were added, even with Q3; the base is now above 48K.
- Gross margin was 69.6% vs. 69.9% in Q3 and 67.7% a year ago. GAAP operating expenses rose 13% Y/Y to $55.5M (compares with 18% revenue growth).
- RKUS -5.5% AH to $9.93. Q4 results, PR.
Tue, Feb. 10, 4:08 PM
Mon, Feb. 9, 5:35 PM
Nov. 3, 2014, 5:24 PM
- Ruckus (NYSE:RKUS) expects Q4 revenue of $87M-$90M and EPS of $0.11-$0.13; consensus is at $89.7M and $0.11.
- Q3 product revenue +22% Y/Y to $78.8M. Service revenue +38% to $6.2M.
- Gross margin was 69.9% vs. 70% in Q2 and 66.4% a year ago. GAAP opex +14% Y/Y to $52.4M.
- 20 new service provider customers were added for Ruckus' Wi-Fi hardware/software, up from 10 in Q2 and raising its total base to 190. 4K enterprise customers were added, up slightly from 3.9K in Q2 and raising the base to over 44K.
- RKUS +1.4% AH. Q3 results, PR.
Nov. 3, 2014, 4:07 PM
Nov. 2, 2014, 5:35 PM
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Oct. 15, 2014, 4:07 PM
- In an encouraging sign for beaten-down telecom equipment and chip/component stocks, Adtran (ADTN +5.7%) managed to rally even though it guided on its Q3 CC (transcript) for a low-to-mid teens Q/Q revenue drop. Consensus (doesn't appear to have fully accounted for Adtran's Q3 warning) was for revenue to drop 2% to $154.9M in Q4.
- Adtran attributed much of its Q3 weakness to "a decline in Europe as a large project there had a seasonal slowdown." Enterprise softness also took a toll.
- The company "[expects] to see an upturn in this business" in 2015, but European sales are expected to remain soft in Q4. Other equipment vendors, such as Juniper (JNPR +2%) and Ciena (CIEN +2.7%), have provided weak guidance blamed on U.S. wireline capex; AT&T is generally seen as a big culprit.
- In addition to Juniper and Ciena, many other industry names have closed with healthy gains. PKT +6.3%. INFN +3.4%. ZHNE +6.7%. ALLT +5.2%. AFOP +4.5%. AMCC +12.5%. CYNI +4%. CALX +3.3%. FNSR +3.1%. UBNT +4.2%. OPLK +3.4%. RKUS +3.3%.
Jul. 30, 2014, 4:15 PM
Jul. 23, 2014, 1:45 PM
- Juniper's (JNPR -9.8%) soft Q3 guidance, along with its related commentary on U.S. telco demand, is taking a toll on fellow telecom equipment suppliers Cisco (CSCO -1.2%), Ciena (CIEN -3.2%), Cyan (CYNI -2.5%), Zhone (ZHNE -6.5%) Ruckus (RKUS -1.6%), and Sonus (SONS -3.8%).
- Optical component vendors JDS Uniphase (JDSU -2.9%) and Finisar (FNSR -2%) are also off, as are several chipmakers (previous) with heavy networking/telecom exposure.
- On its CC (transcript), Juniper stated "market dynamics including M&A activity" are affecting the "sequencing and timing" of U.S. carrier projects. Jefferies reported in June AT&T has significantly cut its wireline capex in the wake of the DirecTV deal.
- There has been speculation AT&T is keeping a lid on wireline capex ahead of the full rollout of its ambitious Domain 2.0 initiative, which will feature the launch of software-defined networking (SDN) and network functions virtualization (NFV) platforms.
- Juniper insists it remains well-positioned with the aforementioned U.S. carriers, and that it has "major design wins" for next-gen projects. The company adds demand remains healthy with U.S. federal, cable, and Internet clients.
- The company's router revenue rose 7% Y/Y in Q2 to $617.8M, and its switch revenue rose 25% to $199.8M. Security product revenue fell 8% to $111.6M. The Junos Pulse VPN software ops (about to be sold for $250M) contributed $31.4M in revenue ($15.9M product, $15.5M service).
Apr. 30, 2014, 4:56 PM
- Equinix (EQIX) expects Q2 revenue of $594M-$598M vs. a $588.5M consensus. Full-year guidance is for revenue to be above $2.395B (consensus is at $2.394B), adjusted EBITDA to be above $1.105B, and capex to be in a range of $350M-$450M. Shares +1.4% AH. (Q1 results, PR)
- Ruckus Wireless (RKUS) expects Q2 revenue of $78M-$80M and EPS of $0.04-$0.05 vs. a consensus of $78.3M and $0.05. Shares +2.4% AH. (Q1 results, PR)
- Flextronics (FLEX) expects FQ1 revenue of $6B-$6.5B and EPS of $0.20-$0.24 vs. a consensus of $6.28B and $0.23. Shares +3.5% AH. (FQ4 results, PR)
Apr. 30, 2014, 4:14 PM
Feb. 12, 2014, 3:39 PM
- Ruckus Wireless' (RKUS +1.1%) Q4 report, originally due after the close, has been published early. The carrier/enterprise Wi-Fi hardware vendor reports Q4 EPS of $0.06, which beats by $0.01. Revenue of $73M (+17.5% Y/Y) beats by $0.8M.
- Ruckus is guiding for Q1 revenue of $71M-$74M and EPS of $0.03-$0.04 vs. a consensus of $71.1M and $0.04.
- CC at 5PM ET
Feb. 12, 2014, 12:10 AM
RKUS vs. ETF Alternatives
Ruckus Wireless Inc provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. Its products include gateways, indoor and outdoor access points, and controller software platforms.
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