that there are many hints that a major OEM agreement is cooking between Radware and IBM.
They also noted that after Radware's conference last week, analyst John Jones from SSB set a 50$ target price for RDWR.
in 2 days and there is no warning. which means:
1. No warning = Good resaults. probably not bright, but at least 1-3 cents above expectations.
2. Cash should still be quite high, since no magor investments were made.
3. The market will react positivly since there are hardly any good news these days.
bottom line: excluding major problems in the whole market, a nice round in rdwr is expected.
The numbers should be out near the begining of august. I think we can expect very good resaults. At least 2-3 cents above expectations. Probably more. Problem is that in the way the Nas. is heading, it might not be enough for a long term jump.
Almost 10% rise with no obvious reason, when the NAS is down, and with more than 500K changing hands? either someone is building a stategic position or some inside info got out.
today's article in globes business daily:
Meir Moshe, Rdwr's finnace chief exec:
"Our forcast for 2001 is the same as the one we presented to our investors in 1999"
(i.e: 50% growth in 2001)
"our margin is 84%. the clients are paying the full price for our product's altough, they are more expensive in about 10% to 20% than csco's and F5's products. you pay more for quality"
"95% of rdwr's sales are made through exterior chanells. this way we reached 140 countries. Recently we got initial orders from china, worth hundreds of thousands $"
last week in israel's BIZPORTAL.CO.IL, Rdwr's
spokewoman said that "the company is still standing behind what it said in SSB's conference a few weeks ago, meaning this qtr's resaults will match the analysts expectations"
from this we can draw a few conclusions:
1. Rdwr's sales were hardly damaged from the problems in the market. This is realy emazing, considering the fact that almost all its rival's published warnings lately.
2. Rdwr will not beat the expect., as it did consistently in the past. But since beating the expectations is a luxury these days,it may not hurt the stock.
3. A positive cashflow means that the company is still sitting on 130 mil$ in cash. That should be more than enough to overcome the storms ahead.
I asked a friend of mine, who was visiting Cebit last week, to have a chat with the polite people in Rdwr's stand. He was told - again - that there is no profit warning expected in this qtr whatsoever, and that business is as usual.
One MUST remember that the internet is still alive, and that the online revolution cant be reversed. As long as there will be big sites, with alot of traffic, there will be a need for load balancing platforms, routers, etc
I didnt hear anything about the earnings, and that may be a good sign. The market in europe is still positive, so my guess is that this qtr's earning will match the expectations, altough young Zisapel will probably try to lower next qtr's expect.
From what i hear Wydeband's product made alot of splash in Cebit. Germany's D-Telecom is one of the most influencial corporates in europe and the fact that they are partners in this project will bring Rdwr's name very high. In an interview that was published in Globes last week, rdwr's R&D chief sounded quite optimistic about this project.
I just hope the market mood will change.
(you can find it businesswire and in CMVT's site)
( BW)(NY-COMVERSE)(CMVT) Comverse And Deutsche Telekom Start
Pilot Project With Wydeband's Content-On-Demand Platform
WOODBURY, N.Y.--(BUSINESS WIRE)--March 22, 2001--
Wydeband's Services Platform Running On The Deutsche Telekom ADSL Network Will
Be Demonstrated At Comverse's CeBIT 2001 Booth, Hall 25, Stand A17 March 22-28,
Comverse (NASDAQ: CMVT), the world's leading supplier of software and systems
enabling network-based multimedia enhanced communications services, announced
today at CeBIT 2001 a showcase for a content-on-demand service that enables
distribution, hosting and management of applications such as, video-on-demand,
games-on-demand, e-learning, business broadband applications, and other bandwidth
demanding applications over Deutsche Telekom's ADSL broadband network
Wydeband, a joint venture between Comverse and Radware (NASDAQ: RDWR) a
leading provider of Internet traffic management solutions, is dedicated to providing
broadband access networks with carrier-grade solutions for the management and the
deployment of broadband value-added services.
Using Deutsche Telekom's broadband infrastructure, the Wydeband Services Platform
(WySP*) for this showcase offers an intelligent content selection portal, allowing content
that is interactive and up-to-date with real-time additions and edits.
The portal may include: movies, games, live TV channels, interactive media, video
conferencing, shopping, e-learning and more.
Wydeband, The JV between CMVT and RDWR has been launched officialy, as you can see in this link http://www.wydeband.com/
the first platform will be demonstrated to the public in Cebit tommorow. Its a working pilot platform operated by - guess who - Deutsche Telekom.
more products will be shown very soon (notice the events section.
As I posted here a few weeks ago, these new products are aimed at the largest cash-rich world telkocms, most of them are already CMVT's clients. I hear that some pilot platforms (and they cost about a 1mil$ each) were already orderd.
Rdwr is going High in the long term, even if the short term is cloudy.
why nobody heard the name "KARDAN" before. it a small D-rated israeli investment arm of a loosing israeli corporate. If their analysts were ang good, their will be making money by now. Novice analyst. Novice reporter.
thanks for the info. i read the article and i have a few comments:
1. The headline is negative but the content of the analysys is based mostly on guesses and speculations. the analyst drew his conclusions from rdwr's competitors. he is also pointing that rdwr's share is being traded very near its cash value. my guess is that any bad news is already priced into the shares current price. don't forget: FFIV is running on empty tank. rdwr's tank is full.
2. the analyst mentioned the rdwr is a very atractive takeover/purchase target.
3. from what i hear the sales are o.k and the new 3G product is already being offered as a pilot to big costumers.
of course, in todays market anything can happen
it may be connected to the cmvt-att deal. every platform that cmvt will sell ATT will contain about 4 of rdwr's units. and thats good money.
I hope that the market will have a good reaction to the news from Cebit, which opens next week. WydeBand (cmvt's and rdwr's JV) should have its first public exposure and its first product announced.
i hear that this is product that is targeted at the multi-bilion 3G market, and it will be marketed through cmvt's global marketing network. the problem is the prospects of a spin-off looks very slim right now.any way, it is still a very big potential market, with alot of cash rich cellular costumers as clients