Exclusive Interview With Blue Coat Systems (BCSI) CEO Brian NeSmith

Although, Blue Coat Systems (Nasdaq: BCSI) was down yesterday, the company had another explosive quarter and guided its future numbers higher. We spoke with Brian NeSmith yesterday and below are some of his comments regarding the quarter and the company’s outlook.

Brian told me Blue Coat does not encounter much heated competition in its core security and efficiency applications. In the WAN business, it typically encounters the usual suspects, Cisco Systems (Nasdaq: CSCO) and Juniper (Nasdaq: JNPR). NeSmith felt that the biggest growth driver for the business will be the acceleration of business applications.

NeSmith said he is not seeing any slowdown in the current economic environment. It actually makes sense because Blue Coat Systems helps companies actually save money on their IT costs. When using Blue Coat Systems, companies are able to spend less money on server costs and hardware associated fees. Blue Coat’s technology allows employees at remote locations to access the same documents and vital data as if they were in the corporate office. Brian said that companies typically see a return on investment (ROI) within 12 months.

Currently, Blue Coat Systems does not have any buyback in place and NeSmith said there is currently no plans to announce one. However, if the stock price falls, I wouldn’t bet against Blue Coat surprising investors with a buyback, seeing that it has 0 debt and over $147 million cash.

Although, the stock fell yesterday, Wedbush Morgan advised clients to take advantage of the weakness and buy BCSI shares. Wedbush thinks that Blue Coat Systems will continue to outperform expectations.

Subscribe to EasyStockAlerts.com Now & Get The News Before Everyone Else!

You May Also Be Interested In

• Oklo (OKLO) PT Lowered to $55 at UBS
• UnitedHealth Group (UNH) Reiterate at Overweight by Cantor Fitzgerald
• H.C. Wainwright Starts Damora Therapeutics (DMRA) at Buy