Looks pretty good.
Revenue of $328.0 million, an increase of 33.6% compared to the fourth quarter of 2015, and an increase of 13.0% from the third quarter of 2016.
GAAP gross margin of 64.1%, compared to GAAP gross margin of 63.6% in the fourth quarter of 2015 and 64.2% in the third quarter of 2016.
Non-GAAP gross margin of 64.4%, compared to non-GAAP gross margin of 64.0% in the fourth quarter of 2015 and 64.6% in the third quarter of 2016.
GAAP net income of $58.8 million, or $0.79 per diluted share, compared to GAAP net income of $43.9 million, or $0.60 per diluted share, in the fourth quarter of 2015.
Non-GAAP net income of $77.5 million, or $1.04 per diluted share, compared to non-GAAP net income of $57.5 million, or $0.80 per diluted share, in the fourth quarter of 2015.
Looks like ANET is up 10% in AH trading
Comments from CEO indicate that they see steadily increasing demand. Quite the dichotomy to Cisco Systems report with shrinking revenues related to their switches and routers. I’ll be taking another bite of ANET, hitting the snooze button, and waking up next quarter.
Long ANET (currently 6.2% allocation)
What is the current situation with Cisco lawsuits?
ANET is still working through the patent issues. As a result, they had to source parts in the US, then they didn’t, and now they do. With US sourcing, the fears have been that the work around for the CSCO patents would severely hurt margins. Now that the earnings are in, it looks to me (and I could be off on this) that the work arounds are not effecting margins much. The excellent results in the face of the work arounds are what I think got the market so excited.
To make a long story short, I think the patent concerns are largely behind ANET now. I think its time to strap ourselves in for a long (for you non-traders out there) and prosperous ride.