Appreciate you continuing to update this board in the manner you do. Suggestion lets pivot away from eleventh / twelfth ... week. Think of a heading that is more pertinent to post ; something Dec / 3rd week or whatever you are more comfortable with. This 11th / 12th what does it mean ? Thank u
ALLT: Better Tone -- But Adjusting Estimates Lower and Trimming
INVESTMENT HIGHLIGHTS: Allot reported below our forecast and as a result we
are trimming our revenue and EPS estimates. However, the company offered a more
positive read on conditions and is indicating an improved pipeline, solid uptake of its
newly launched analytics products and solid interest from cloud service companies as
a new customer opportunity. Overall, the improved tone is a bit more constructive.
■ Allot reported Revenues and EPS below our forecast for the September quarter.
Revenues of $24.1 million came in 6.6% below our estimate and EPS came in at $0.03
as compared to our estimate of $0.07. B-B Came in above 1.0 for the third consecutive
quarter as the order rates are building a head of steam into the new year.
■ Allot also announced a $12 million add on order from a Tier 1 Service Provider as
well as a solid order from a Cloud Services company.
■ Trimming CY4Q Revenues to $26.5 million from $29.6 million and Trimming CY4Q
EPS to $0.06 from $0.12
■ Trimming CY14 Revenues to $115 million from $125 million and Cutting CY 14 EPS
to $0.37 from $0.47
■ Lowering our Price Target to $17 from $18.
News Flow is Better than Estimate Actions Suggest:
■ New Analytics Offering Well Received. Allot is excited by the response to its just
launched analytics package. They say they are seeing a lot of interest and already
■ Strengthening Activity Funnel. Allot stressed the improving tone of activity and
noted a solid increase in their pipeline of new business leads. They noted the addition
of a number of larger deal sized transactions across a broad range of service provider
■ Cloud Opportunity. Allot won a solid order from a Tier 1 Cloud Services company.
Management thinks this transaction will open up an entirely new arena for growth
for Allot. They stated they have seen a number of deals in this newly emerged area
filtering into the lead pipeline.
On competitive dynamics, Allot believes that tier-1 customers are looking for complete platform solution with DPI, but also applications layered on top such as caching
and video optimization as carriers don’t have visibility in the network. Additionally, Allot believes value added services such as security and analytics are also gaining a
lot of traction. In terms of basic DPI solutions, Allot pointed out that some applications are making it harder to recognize the source based on basic packet inspection,
which makes it harder for some of its competitors to provide comprehensive policy enforcement solutions.
Sentiment Indicator : neutral
Posted by Mark Sue on Tuesday, November 12 2013, 4:49 PM ET
We hosted a fireside chat at the RBC TIMT Conference with Nachum Falek, Chief Financial Officer of Allot Communications.
Allot believes that the sales cycles may have elongated in recent years, which has impacted some of the sales visibility as the company works to gain carrier acceptance
tests. Allot was able to grow rapidly over the last few years; however, the company has seen a slowdown since the beginning of last year with the top-line challenged
somewhat in recent quarters. Allot highlighted the decline in bookings trends in CY12 with the book-to-bill below 1.0 in the second half of CY12, which have impacted
revenue trends in CY13.
The environment may be improving with some strength in bookings this year. With book-to-bill above 1.0 every quarter this year, Allot is well placed with revenues and
bookings seeing an uptrend heading into CY14. The company stuck to its approach of not providing details around its backlog and bookings trends, but indicated that it
takes a conservative approach towards recognizing revenues. Allot highlighted that in case of deals, where the company is awaiting clearance and acceptance from
carriers, it recognizes product placed at customers on its books as inventory until it can recognize revenues.
On opex, Allot highlighted that it can support a higher level of revenues at the existing level of expenses, pointing to the higher levels of bookings that it has been able to
service. The company believes there’s leverage in the model in terms of growing revenues, while maintaining the level of opex.
UPDATE: D.A. Davidson & Co. Initiates Coverage on Procera Networks as Acquisition of Vineyard Networks Creates Market Opportunity
In a report published Friday, D.A. Davidson & Co. analyst Mark Kelleher initiated coverage on Procera Networks (NASDAQ: PKT with a Buy rating and $19.00 price target.
In the report, D.A. Davidson & Co. noted, “As data usage continues to strain mobile networks, network providers are turning to deep packet inspection (DPI) to better manage bandwidth. We estimate the total DPI market in 2013 at $600-$700 million, growing 20% annually, should reach a $1.4 billion market by 2017. The acquisition of Vineyard Networks in January 2013 expands the company's total addressable market to include the DPI enterprise market. Based on an OEM model, we believe the Vineyard products can contribute higher gross margins than the corporate average, with top-line growth also higher than the corporate average.”
"We are very pleased to participate in Sandvine's Global Channel Partner Program and provide operators in Greater China with industry-leading policy control solutions" said Barry Yen , COO at Wisespot Company Ltd. "Sandvine's channel program is complementary to Wisespot's on-going product strategies, and gives us the flexibility we need to leverage our own development and support expertise in order to meet the strict demands and rapidly-evolving business needs of our tier-one customers."
"Partnering with Sandvine, the market leader in Network Policy Control, extends CIS Group's portfolio and reach with African operator networks. Sandvine's products enable CIS Group to provide end-to-end customized solutions for network monitoring, service creation and business intelligence to improve subscriber quality of experience. With better segmentation of their subscribers our operator customers can increase their revenues to new levels," said Samy Lalileche, Business Development Manager, CIS Group.
"Sub-Saharan Africa, the market that we focus on, has the lowest Internet penetration and youngest population on the planet. We believe the transformational power of the Internet will be more significant in Africa than anywhere else and will require unique and innovative services, and specialized business models to sustain these high growth environments. Sandvine provides us with a rich and powerful tool box that enables us to empower our customers and provide services that we believe will ultimately transform network access across the continent," Stanley Freiman , CEO, Core2Africa Networks.
Asia Pacific is a high growth area for Sandvine, representing roughly a quarter of the company's revenue during the twelve months leading up to August 31, 2013 .
Anthony CS. Angeles, President, SMS Global Technologies Inc., noted, "Together with Sandvine we offer fixed and wireless operators in the Philippines the benefits of a truly visible and managed network infrastructure. Our partnership with Sandvine has increased our value and credibility among operators as a best-of-breed network solutions provider."
New opportunities for partners to provide strategic services to prospective customers and Sandvine's current customer base of 250+ operators
WATERLOO, ON , Dec. 10, 2013 /CNW/ - Sandvine, (SVC.TO) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today announced that Sandvine's Global Channel Partner Program now includes partners in 70 countries across the Americas, Europe , Middle East and Africa , and Asia Pacific regions. Sandvine's Global Channel Partner Program includes leading edge local and international telecommunication organizations such as: CIS Group, Core2Africa, SMS Global Technologies and Wisespot.
Sandvine's Global Channel Partner Program recently launched an Engineer Accreditation Program that enables solution architects and advanced support engineers to install and commission Sandvine products. This program introduces a path for qualified Sandvine partners to move beyond reselling products into professional service delivery to increase their revenues in the short and long term. Over the twelve months up to August 31, 2013 , Sandvine earned approximately $75 million in revenue through its global channel partners.
"Sandvine is the market share leader in network policy control. A large part of that success is generated through the strong relationships we have with our reseller and integrator partners." said Dan Byron , Vice President, Global Alliances, Sandvine. "We fulfill over 70% of Sandvine's revenue through our Global Channel Partner Program and we continue to attract and recruit new partners that deliver the right technology and service solutions with proven business acumen and best practices."
Sandvine's partnerships have grown specifically in the African and Asia-Pacific regions to deliver Network Policy Control to these high growth, populous regions.
Interesting , •Coverage initiated on Gigamon today by DA Davidson Neutral
Gigamon Inc. (GIMO) -NYSE Follow
They have some clout
25.37 Down 2.36(8.51%) 2:51PM EST - Nasdaq Real Time Price
Search a few thoughts on your above comment , Stifel Financial is a perfect example - . " For 2014, we are modeling 20% growth, which is lower than our initial 25% target.
Our reduction is mainly us being prudent, given the lumpiness in orders and
variability in terms of timing of wining deals. Still, we believe that Procera is
gaining share, as evidenced by its 30% growth performance for 2013 versus a
decline of 10% for closest competitor Allot ". Once again Procera growth in 2013 Q1-Q4 is 10%,20%,30% and if they deliver as guided 40% Q4. Because Allot had zero growth in 2013 that by itself has caused the analyst community to be conservative and valuations and multiples Industry wide to be depressed which in turn has kept shorts more committed to their position. The good news for Procera is the Vineyard acquisition which contributed very little in the form of revenues during current calendar year. Next year Vineyard OEM & Enterprise business will offer Procera visible tangible leverage in the form of revenues. On the Mega Deals JB has gone out of his way not to talk up size and potential. Procera over a year ago in a investor presentation on their website use to put out the full potential they no longer do that and go out of their way not to build up expectations.
Thank god for Davidson's initiation of Buy Recommendation this morning, timing was perfect , Perception Rules . Thanks to JB & CC ill timed Insider Sales " Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person " shorts took control of this currency they were focused motivated and locked in .Institutional longs just took a step back and technical damage was done. What a difference two weeks can make , Friday Nov 29th for the first time in a while Procera traded through 15 had some bounce in it step and looked ready to turn that $14.80 -15 ceiling / resistance into the floor / new support , what a sad unfortunate head fake . Davidson buy recommendation today is very positive for several reasons 1) if Pkt has been maligned by Institutional or Retail tax loss selling we need commensurate demand on the other side to absorb overhang / supply 2) Some less informed more emotional investors might of thought those insider sales were a precursor of bad news ahead . 3) I can assure you Davidson touched base with Management before they pulled the trigger . If Q4 was not progressing in the manner projected that Buy Recommendation would not be released. Demand for this currency is the antibiotic for this sick , poorly traded , technically violated , heavily shorted anemically value currency.
If anyone has a relationship with above firm please be considerate and share text of Research Report / Buy Recommendation , thank you.
Coverage initiated on Procera Networks by DA Davidson
APNT's Reality pawl442 , " What I can't figure out, is this drop because of the merger and the possible loss of shares to ...." APNT's share price is under constant pressure with unlimited supply because over the last several years do to a compromised Balance Sheet Applied has supplemented their operating short fall through issuing Convertible Securities. When converts have a fixed price and in most cases that price was between 0.15 and higher the buyer are not motivated to drive share price below strike. When the well ran dry and APNT could no longer sell converts with a fixed price they did a deal with the Devil and that deal was called a Toxic Convert with no fixed price which in turn punishes their currency and creates tremendous dilution. The two biggest problems this Companies has / had looking in he rear view mirror is 1) a totally inept board which bring no value to the table both in term of financial where with all personally , and no contacts / connections with other well capitalized parties. Clearly the most disappointing board in every capacity. 2) Partnerships were and are the vehicles that this Company was expecting to drive Sales unfortunately when a Company relies on others to ramp and focus on a business initiative they loose control. APNT identified several strong partner but unfortunately their partners focus / timeline and sense of urgency have not been prioritized. When a Company like APNT is not dealing from a position of strength their ability to dictate terms in a potential merger agreement is compromised. Therefore 62/38 is a ratio APNT must accept their alternative is Stockholder get 0% and debt owners take ownership of Assets , the Sad State of this Growth Story as a independent company. That being said if deal goes through the share price & value of your current APNT position should move up considerably.
" Constanti sold about 20% of his holdings and Brear sold 33% of his holdings in this sale." Both individual own outright the same amount of shares they owned 3 months ago. I remember last time I looked JB owned 75,000 shares after these most recent sells he now owns 80,000. Important to put some context to pk's above statement. If JB's ownership position was reduced to 50k I would agree not the case.
11/29/2013 - 3,952,658 average volume over 2 week period - 170,281 days to cover - went up to 23 from 13 last two reporting periods , 11/15/2013 - 3,913,297 - avg vol 291,505 - days to cover 13 ,10/31/2013 3,952,119 - avg vol 285,880 - days to cover 13
Unfortunately this is the way JB & CC roll. They treat their stock rewards as part of their annual compensation package. It is a taxable transfer of shares and these gentleman consistently every year regardless of share price elect to sell. They maintain a core holding and know they have a plethora of shares in the pipeline that will continue to get transferred their way every year. I am sure if Company gets sold it would trigger a automatic fully vested clause on their entire inventory of stock that is not fully invested. Jim & CC deserve to get rewarded not based on stock price performance but based on internal metrics that are part of Senior Managements employee contract. If one objectively looks at this Organization both in size & quality of relationship / partnerships over the last several years we should all be very pleased in the operating decisions management has made. One very important well timed Management decision has to do with their balance sheet. The two tiered approach of putting 100 million of cash and attracting a top tiered firm like Stifel Financial when Procera was still a pre teen raising 25-30 million at $9.50 than 85 million @ $21. Often these are taken for granted but they are very important and appreciated by all. Hopefully 2014 will be the Calendar year both share price and valuation get more robust & appreciated. PS What is the benefit of complaining PK does enough for all of us I would rather focus on the tangible fundamental improvement of Company than complain about share price.
James Frederick Brear, Procera Networks's CEO and President and a director of the company, recently sold 40,000 shares of the company. The sales took place at prices ranging from $14.18 to $14.60 per share, on dates ranging from December 09 to December 10, 2013. Brear still owns 80,000 shares of the company. Brear operates out of Fremont, CA. Some additional info was provided as follows: ........................................
Charles Constanti, Procera Networks's Chief Financial Officer, recently sold 10,000 shares of the company. The sales took place at $14.85 per share, on December 06, 2013. Constanti still owns 45,300 shares of the company. Constanti operates out of Fremont, CA. Some additional info was provided as follows
I would be remiss not to share with everyone I too am extremely disappointed with the lack of participation and general heavy tape in Procera shares as the overall market continue to trade in the manner it does. That being said institutional buyers are playing this one perfectly. They know lifting offers is not a option but staying on the bid is a excellent way to accumulate. Take a look at the volume in the last 15 minutes of trading today. PKT's volume was 100k at 3:45pm last 15 minutes 45 thousand shares traded whether institutional tax loss selling is still a issue or shorts tried to go for a throat hold at a tenuous time that supply was very comfortably absorbed. We noticed a perfect correlation between increase in short position from Q2 to Q3 increase of 1.1 million and a increase in institutional ownership from 79% to 86% which represents approximately that amount of shares. Times like this we should all focus on the fundamentals and Procera's business accomplishments in 2013. If they execute in Q4 in the manner in which they telegraphed on last conference call they will exit 2013 with YOY Growth of 10%-Q1 , 20%-Q2 , 30%-Q3 & 40%-Q4 = 30% or greater growth for calendar 2013 which compares very favorably to their peers. Having assimilated 2 unique complementary businesses from Vineyard into their business model during 2013 sets this companies up for excellent growth in both market share and valuation moving forward. Do not despair hang in there management is focus on growing this business , 2014 should be a catch up year for their currency/ valuation.