Arista Networks -8.6% alongside dimming margins

|About: Arista Networks, Inc. (ANET)|By:, SA News Editor

Arista Networks (NYSE:ANET) has tumbled in late trade, down 8.6%, after posting Q1 earnings that beat expectations but contained a lower gross margin view.

Revenues were up 41% Y/Y and up 1% from Q4, to $472.5M.

Meanwhile, non-GAAP net income jumped 87% to $134.1M from a year-ago $71.8M. Gross margin on a non-GAAP basis of 64.4% was up slightly from last year's 64.2%, but dipped from Q4's 65.9%.

Revenue breakout: Product, $407.6M (up 39.9%); Service, $64.87M (up 47.1%).

For Q2, it's guiding to revenues of $500M-$514M (vs. consensus for $504.2M), non-GAAP gross margin of 62-64% (light of consensus for 64.2%), and non-GAAP operating margin of 32-34%.

Press release

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