The world of know-how has seen extra disruption prior to now 18 months than in some other interval in historical past. Businesses have accelerated digital transformation plans and launched a number of new applied sciences, resembling cloud, mobility, IoT and edge computing.
The commonality for these is that they’re all network-centric applied sciences, which means the community performs a key position in how effectively they carry out. The want for a high quality, modernized community is now receiving C-level visibility in organizations. information level to help this comes from a latest survey of mine the place virtually 70% of enterprise leaders acknowledged the worth of the community has elevated for the reason that begin of the pandemic.
Another set of proof factors comes from the latest financials of three of the business’s high community firms – Extreme, Juniper and Arista with Cisco on deck to report later this month. In my most up-to-date ZKast, carried out in partnership with eWEEK eSPEAKS, I mentioned the outcomes with ESG’s Bob Laliberte. Highlights of the dialogue are beneath:
Extreme Networks
- Extreme Networks posted revenues of $278.09M for the quarter ending June 2021, handily beating Street expectations by 5.4%. This can also be up considerably from the $215M it posted similar quarter 2020.
- Quarterly earnings had been $0.19 per share, barely forward of the anticipated $0.18 however effectively forward of the $0.03 from a 12 months in the past.
- The sturdy quarter put Extreme over $1B in annual income for the primary time in its historical past.
- The inventory not too long ago noticed a 7% enhance when monetary agency Needham put a purchase ranking on the inventory.
- Needham is anticipating some near-term margin stress as a result of present chip scarcity however expects the corporate to flourish after.
- During the quarter, Extreme turned the primary vendor to supply WiFi 6E.
- Extreme’s development comes on the heels of plenty of strategic acquisitions, significantly Aerohive, which introduced cloud-based administration.
- Recent launch of Universal Hardware provides prospects the flexibility to deploy what it wants right now however shift sooner or later.
- Extreme CoPilot lets prospects deploy AI however in a manner that minimizes danger.
Juniper Networks
- Revenues had been $1.17B, forward of the Street’s estimate of $1.14B and up from $1.09B when evaluating to a 12 months in the past.
- Net earnings, on a non-GAAP bases was $0.43 per share, which was a $0.04 beat versus consensus estimates and up from $0.35 a 12 months in the past.
- Company guided to $1.2B for FY21 Q3, which was gentle when in comparison with what expectations had been.
- During the decision, CEO Rami Rahim did cite the continued scarcity of chips, main the longer lead occasions and elevated prices.
- Juniper, historically a telco first firm, has diversified its enterprise. Of the highest 10 prospects within the quarter, 4 had been cloud, 5 had been service supplier and one was enterprise.
- Looking at income by phase – cloud was $320M, service supplier $444M and Enterprise is now at $408M and is Juniper’s quickest rising phase.
- Enterprise development has been fueled by key acquisitions of 128 Technology, Apstra and Mist.
- Mist’s AI engine is taken into account one among, if not the perfect within the business and its use is now pervasive throughout the Juniper product line.
Arista Networks
- Revenues grew 30.8% to $707M, a strong beat of $18M and up 30% in comparison with the identical interval final 12 months.
- GAAP gross margins had been 64% up barely from 2020.
- Company information was sturdy. The midpoint of the $725M to $745M vary was $37M forward of consensus estimates.
- Arista handed 50M cloud managed ports within the quarter.
- Consistent with different distributors, administration did cite longer lead occasions as a result of chip scarcity.
- Drivers for Arista embody:
- Cloud titan vertical stays sturdy and pushed by 400G…
