Arista Surges 20% on Earnings Blowout

Mitch Wagner
8/4/2017

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
danielcawrey
danielcawrey
8/7/2017 | 8:20:19 PM
Cloud
Despite the Cisco dark cloud, Arista still booms. 

Will there be a day of reckoning. Is Arista just profiting off of Cisco IP? Only time will tell us. 
More Blogs from Wagner’s Ring
We're packing our bags for Dallas, for our cleverly named Network Virtualization and SDN Americas conference, but first we sat down to talk about NV, SDN and our favorite travel snack.
Will Apple's new iPhone 11 grow telco profits? Will Apple TV+ compete in a crowded OTT market? And why does everybody have fabulous hair in an Apple TV+ series where civilization has collapsed because everybody in the world is blind?
After years of defending itself against US spying accusations, Huawei claims the US government is spying on it.
The satellite network operator is looking to the Open Networking Automaton Platform (ONAP) to automate connecting its space-based network with terrestrial operators.
VMware's been shopping this summer, buying three cloud and networking startups that will bolster its telco strategy.
Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events