How much more needs to be said about the state of enterprise IT spending? Companies like Cisco (Nasdaq:CSCO), Riverbed (Nasdaq:RVBD), F5 (Nasdaq:FFIV) and Juniper (Nasdaq:JNPR) have all had their challenges and setbacks, leading many investors to reevaluate the health of the tech sector and reset valuations much lower. What seems to be evident in Aruba Networks' (Nasdaq:ARUN) earnings, though, is that there is still money out there for IT - perhaps not as much as a year ago, but enough that companies will still spend on the products they see as important to their operations.
A Solid Close to the Fiscal Year
Aruba announced that fiscal fourth quarter revenue rose 47% compared to last year and almost 8% compared to the fiscal third quarter. Management did not give a lot of specificity regarding where revenue came from, other than to say that U.S. results were stronger than in Europe (not a surprise) and that the strongest markets were "general enterprise" and education (a minor surprise). In response to a question on the conference call, management indicated no particular weakness in the financial sector - a surprise perhaps given NetApp's (Nasdaq:NTAP) recent comments.
Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Aruba-Still-Wired-On-Growth-ARUN-CSCO-JNPR-HPQ-MSI-MERU-MSFT0829.aspx
No comments:
Post a Comment