& cplSiteName &

Arista Surges 20% on Earnings Blowout

Mitch Wagner

Microsoft and other cloud providers helped Arista deliver fantastic financial results, despite an ongoing lawsuit from Cisco.

Arista revenue was $405.2 million, up 50.8% year-over-year and 20.8% sequentially, for the second quarter, which ending June 30 and was reported Thursday. Net income was $105.5 million, or $1.34 per diluted share, up from $53.7 million or $0.74 per diluted share, year-over-year. For the third quarter, Arista expects revenues of $405 million to $420 million, well above consensus of $377.5 million, according to SeekingAlpha.

Arista traded at $173.01 mid-afternoon Friday, up 19.84%

The vertical industry Arista calls "cloud titans" accounted for Arista's top customers, followed by cloud specialty providers, service providers, financials and other tech enterprises, according to a transcript of Thursday's earnings call. Microsoft in particular accounts for more than 10% of Arista's business, with "no appreciable change in that mix," CEO Jayshree Ullal said.

Arista CEO Jayshree Ullal. Photo by Theolive123 (Own work) [CC BY-SA 4.0], via Wikimedia Commons
Arista CEO Jayshree Ullal. Photo by Theolive123 (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Keep up with the latest enterprise cloud news and insights. Sign up for the weekly Enterprise Cloud News newsletter.

The good news defies an ongoing lawsuit filed by Cisco, charging that Arista violated Cisco's intellectual property. Arista suffered a setback late last month, as the US International Trade Commission ruled to keep a ban in place blocking Arista from importing networking switches to the US. (See Arista Switch Ban Stays in Place for Now.)

Arista is working to meet demand, CFO Ita Brennan said on Thursday's earnings call. The company is "now firmly focused on implementing product redesigns and working with customers on qualification so that we can meet their needs in compliance with the orders," she said. Arista is "at scale" with its US manufacturer and executives believe they "have the capacity to support US customer demand from this site. In addition, we have worked to solidify our US supply chain and believe we can now support a more consistent use of US-based sourcing as needed."

Related posts:

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Friend me on Facebook Editor, Enterprise Cloud News

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Wagner’s Ring
Platform is designed to enable enterprises to build big data analytics apps that move easily between public and private clouds.
Buying Evident.io extends Palo Alto's portfolio with API-based security capabilities and compliance automation.
Google wants to win the hearts of enterprise IT for Chrome OS on the desktop, but it has a long way to go.
IBM Cloud gets a security and Kubernetes performance boost.
Atlassian moved its Jira and Confluence developer collaboration tools to Amazon Web Services.
Featured Video
From The Founder
Ngena's global 'network of networks' solves a problem that the telecom vendors promised us would never exist. That doesn't mean its new service isn't a really good idea.
Flash Poll
Upcoming Live Events
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
Dell CTO: Public Cloud Is 'Way More Expensive Than Buying From Us'
Mitch Wagner, Mitch Wagner, Editor, Enterprise Cloud, Light Reading, 3/19/2018
IBM Faces Age Discrimination Accusations
Mitch Wagner, Mitch Wagner, Editor, Enterprise Cloud, Light Reading, 3/22/2018
Eurobites: Cambridge Analytica Feels the Heat
Paul Rainford, Assistant Editor, Europe, 3/20/2018
HR: Cable Dominates US Broadband
Carol Wilson, Editor-at-large, 3/21/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed