no - actually all of the upside guidance is due to a $400 mln one time customer renewal. In fact sales execution was weak during the quarter with sales of new products DOWN mid single digits and EMEA and APJ coming in below the company's expectations.
In light of the ongoing sales execution weakness the company even fired its long standing Executive Vice President of Worldwide Sales & Services and replaced him with a guy from the lower ranks of the company effective today.
From the prepared remarks:
"...our marketing and sales execution is still not consistent. This is evident in our mid-single digit decline in total new product and capacity sales during the quarter. We also need more consistent positive performance in our international business. Our recent experience has been that some regions beat their plan
one quarter and then come up short the next. "
The weak product and capacity sales will take its toll on FY15 earnings as the company states in its prepared remarks "as a result of our performance so far this year, we currently expect our FY15 revenue growth rate and non-GAAP operating margin to be similar to what we are seeing in FY14.
given the ongoing problems in the company's sales execution and the pressures on cash flow generation I would expect rather cautious analyst commentary tomorrow and therefore would advice to short the stock in after hours.