Those of us who have positions in UBNT or ANET have reasons to smile.
UBNT reported:
Enterprise Technology revenues increased 73% year-over-year and 36% sequentially,
Gross Margins increased 10% year-over-year,
GAAP and Non-GAAP diluted EPS increased 35% and 34% year-over-year, respectively,
Total cash and cash equivalents as of March 31, 2016 were $502.5 million, compared with $496.7 million as of December 31, 2015,
Initiated a new stock repurchase program, authorizing the Company to repurchase up to $50 million of its common stock.
The frosting on the cake is that the company guided higher. As I wrote last quarter, Wall Street loves nothing more than a company that beats, raises and flashes a lot of cash. UBNT comes through again. (And, oh, before I forget, the short interest is ~ 11%. There will be buying)
Now, ANET:
Networking technology vendor Arista Networks (ANET) this afternoon reported Q1 revenue and profit that topped analysts’ expectations, and forecast this quarter’s revenue higher as well, sending its shares sharply higher in late trading.
For the current quarter, the company sees revenue in a range of $259 million to $265 million, with a gross profit margin of 62% to 65%, on a non-GAAP basis. That is above consensus for $254 million.
Non-GAAP net income of $49.1 million, or $0.68 per diluted share, compared to non-GAAP net income of $35.5 million, or $0.50 per diluted share, in the first quarter of 2015.
GAAP net income of $35.2 million, or $0.48 per diluted share, compared to GAAP net income of $24.5 million, or $0.34 per diluted share, in the first quarter of 2015.
Commenting on the company’s financial results, Ita Brennan, Arista’s CFO, said, "We are pleased with our execution across all financial metrics in the first quarter and with our outlook for Q2 reflecting strong customer adoption of our new products.”
Short interest in ANET ~18%. Yes, there will be buying.