Lazard Keeps Ruckus (RKUS) at Neutral Following Q2 Report; Caution Around SP Evident in Outlook

Lazard Capital is maintaining its Netural stance on Ruckus Wireless, Inc. (NYSE: RKUS) following second-quarter 2013 results, which had the company top EPS estimates by 2 cents.

Analyst Ryan Hutchinson noted that, [Ruckus] continues to benefit from positive trends in the enterprise and was able to regain its footing with respect to the SP vertical. New SP customer wins are seeing momentum and the company continues to expand its footprint within its installed base. While visibility has improved relative to last quarter and design win activity is encouraging, the timing of revenue conversion remains uncertain.

In particular, Ruckus added 15 new SP customers, bringing its total to 90. In particular, North America SPs stood out, particularly the MSOs, which are being the most aggressive in terms of Hotspot roll-outs. The company was still cautious on timing over deployments and revenue conversion.

Following results, Hutchinson is adjusting some numbers. FY13 revs and EPS move from $0.17 and $260 million up to $0.18 and $262 million. FY14 revs go from $319 million up to $320 million.

For an analyst ratings summary and ratings history on Ruckus Wireless click here. For more ratings news on Ruckus Wireless click here.

Shares of Ruckus Wireless closed at $13.31 yesterday.

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