Wedbush Dissects Cisco (CSCO) Earnings Relative Partners/Foes

August 16, 2012 12:05 PM EDT
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Following the release of Cisco's (Nasdaq: CSCO) earning yesterday, analysts at Wedbush issued a note commenting on how a handful of companies might be affected by their interpretation of the tech giant’s results.

Telepresence Sales Weak – Not Great for Polycom (Nasdaq: PLCM)

"Pressures in the public sector and Europe had a negative impact on Telepresence. We view this as a negative for Polyco," said analyst Rohit Chopra.

Cisco's Security Business on the Rise – Fortinet (Nasdaq: FTNT), impreva, Radware (Nasdaq: RDWR), and F5 (Nasdaq: FFIV)

"We continue to believe that Fortinet may continue to be taking share from its larger rival," said Chopra. "In our view, Cisco's rebound in security is positive for Fortinet, Imperva, Radware and F5 networks," he added.

Wireless - Mixed for Aruba Networks (Nasdaq: ARUN)

"Cisco appears to be maintaining its ~50% share of the WLAN market, and growth in the segment is generally a positive indicator, in our view... Cisco's WLAN results are mixed for Aruba."

Application networking – Radware Takeover Possible

"With no mention of application networking on the call, we continue to believe that it experienced no growth, at best," said Chopra.

"We think it would take 18-24 months to develop a competitive product and the company may have to make an acquisition in this area. A company that is developing application networking software in addition to a solid hardware portfolio is Radware, which could easily fill a void at Cisco."

Service Provider Orders – Negative for Juniper (NYSE: JNPR) NetScout (Nasdaq: NTCT) BroadSoft (Nasdaq: BSFT) and F5, Acme Packet, Inc. (Nasdaq: APKT)

"We think the read through to Juniper, Acme Packet, NetScout, BroadSoft and even F5 is that capex spending remains highly uncertain and therefore represents a significant risk to the company's financials in the near term," said Wedbush analysts.

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