Barclays U.S. Data Networking & Wireline Equipment: 2011 Bus Tour: Solid Networking Trends
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Rating Summary:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
5 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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UPDATE - Barclays U.S. Data Networking & Wireline Equipment: 2011 Bus Tour: Solid Networking Trends
Analyst, Jeff Kvaal, said, "We hosted our Networking Bus Tour yesterday in Silicon Valley. Macro concerns do not appear to have hurt networking demand, which we see as positive relative to sub seasonal guidance from many networking cos. We met with NetGear (Nasdaq: NTGR), Aruba Networks (Nasdaq: ARUN), Cisco (Nasdaq: CSCO), and ShorTel (Nasdaq: SHOR). We expect further updates as our Global Tech Conference begins today."
"Vendors in general felt that federal and European spending has held up thus far. Managements felt that macro concerns, particularly in Europe, merit scrutiny but have not yet driven a material shift in demand across the continent. This dovetails well with our survey of US networking vendors that suggested a normal 4Q budget flush. Pricing pressure appears standard in Layer 2-3 switching, enterprise WLAN, and retail WLAN."
"This contrasts with sub seasonal guidance from many networking vendors. A roster of companies has offered guidance for the December (or January) quarter that is below seasonal norms. These include ARUN, CSCO, F5 (Nasdaq: FFIV), Juniper (Nasdaq: JNPR), Polycom (Nasdaq: PLCM), Riverbed (Nasdaq: RVBD), and SHOR."
CSCO: Leadership in core switching indicated that its share of switching revenue and ports had stabilized in F1Q.
NTGR: Management believes consumer electronics demand has been steady
despite the poor economic view in its core US and European markets.
ARUN: Healthy enterprise and smartphone demand continues to drive enterprise WiFi purchases.
SHOR: ShoreTel has seen some deferrals from the macro that affected F1Q. However, the company has held its 20% growth target for FY12 given its growing distribution channel, mobility, and full pipeline. We also believe SHOR is headed towards the high end of guidance.
Analyst, Jeff Kvaal, said, "We hosted our Networking Bus Tour yesterday in Silicon Valley. Macro concerns do not appear to have hurt networking demand, which we see as positive relative to sub seasonal guidance from many networking cos. We met with NetGear (Nasdaq: NTGR), Aruba Networks (Nasdaq: ARUN), Cisco (Nasdaq: CSCO), and ShorTel (Nasdaq: SHOR). We expect further updates as our Global Tech Conference begins today."
"Vendors in general felt that federal and European spending has held up thus far. Managements felt that macro concerns, particularly in Europe, merit scrutiny but have not yet driven a material shift in demand across the continent. This dovetails well with our survey of US networking vendors that suggested a normal 4Q budget flush. Pricing pressure appears standard in Layer 2-3 switching, enterprise WLAN, and retail WLAN."
"This contrasts with sub seasonal guidance from many networking vendors. A roster of companies has offered guidance for the December (or January) quarter that is below seasonal norms. These include ARUN, CSCO, F5 (Nasdaq: FFIV), Juniper (Nasdaq: JNPR), Polycom (Nasdaq: PLCM), Riverbed (Nasdaq: RVBD), and SHOR."
CSCO: Leadership in core switching indicated that its share of switching revenue and ports had stabilized in F1Q.
NTGR: Management believes consumer electronics demand has been steady
despite the poor economic view in its core US and European markets.
ARUN: Healthy enterprise and smartphone demand continues to drive enterprise WiFi purchases.
SHOR: ShoreTel has seen some deferrals from the macro that affected F1Q. However, the company has held its 20% growth target for FY12 given its growing distribution channel, mobility, and full pipeline. We also believe SHOR is headed towards the high end of guidance.
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