Out Fox The $treet

Typical of the quarterly reports over the last couple of years,  Riverbed Technology  ( NASDAQ: RVBD     )   easily surpassed earnings estimates. The concerning part for investors are that the WAN optimization specialists failed to meet revenue numbers. On top of that, the primary Steelhead product had virtually flat growth from the prior year. The application performance company is still busy wrapping up the integration of the OPNET acquisition from the end of last year. So far the deal isn't generating the revenue synergies expected, but that could be due to a staggering slowdown in government spending. The company obtains a large portion of revenue especially during the third quarter of the year so a rebound in government spending could benefit Riverbed more than most. Read the full article here . Disclosure: Long RVBD. Please review the disclaimer page for more details. 

The market for network performance appliances has become so competitive that Riverbed Technology (NASDAQ: RVBD ) now trades at a below-market earnings multiple of 12. With the purchase of OPNET last year, the network performance company for globally connected enterprises is facing a weak market for network equipment while it still works to achieve the synergies promised as part of the merger. The network equipment sector is facing a couple of more » Disclosure: Long RVBD. Please review the disclaimer page for more details. 

After the close on Thursday, networking equipment stocks Juniper Networks (JNPR) and Riverbed Technology (RVBD) reported earnings that sent both stocks lower on Friday. One company missed estimates and focused on issues with carrier spending and the European debt crisis. The other exceeded estimates and talked about a product transition in Q1 leading to a major new product cycle. So which stock was down 18% and which one was down 3% at the close on Friday? That might surprise most investors who read the earnings reports and listened to the conference calls. Read the full article at Seeking Alpha. Disclosure: Long RVBD. Please review the disclaimer page for more details. 

Ciena ( CIEN ) soared after  reporting  an EPS beat and non-GAAP profits for the first time in several quarters. CIEN had a impressive mix of improved revenue combined with a reduction in operation expenses. The real question is whether this combination can last in the competitive environment. Ciena has long been a leading optical and networking equipment provider back to the internet bust in 2000. Since the bust, CIEN has had some good periods, but it has never been able to flourish. The company continues to make lower highs every 4 or so years with peaks around 2004, 2007 and 2011.  Read the full article on Seeking Alpha.  Disclosure: Long RVBD. Please review the disclaimer page for more details. 

After a few months of weakness since the  disappointing guidance  of F5 Networks ( FFIV ) back in mid January, most of the networking cloud stocks have been under pressure. It tends to be a normal pattern for new disruptive services to go through extreme highs followed by lows that shake out longs. The pattern will repeat several times over the next couple of years as cloud computing becomes mainstream. FFIV is now down 35% from its highs back in January. Have the future prospects really changed that much? Read the rest of the article on Seeking Alpha .  Disclosure: Long RVBD and RDWR. Please read the disclaimer page. 

While the US tech sector its a rough patch, some Chinese tech stocks like China Cache (CCIH) are looking very bullish technically. Networking stocks like F5 Networks (FFIV) and Riverbed Tech (RVBD) along with just about all of the optical equipment stocks and even the US CDN leader Akamai (AKAM) have fallen below the 200ema. Typically this is a very bearish sign especially if the 20/50emas dip below the 200 as well. CCIH on the other hand has regained the 20/50ema. The 200ema isn't active yet since the company hasn't been public that long. CCIH is the leading CDN provider in China, but has dropped dramatically from its post IPO high near $35 all the way back in November. Along with the general weakness in the Chinese market that started back then, they also faced the scare that the COO leaving signaled internal issues at the company. Based on the Q4 results those issues were put to rest and the stock has been basing since then. From looking at the chart below it appears t...

After Wednesday's close, F5 Networks ( FFIV ) reported Q1 2011 numbers that easily beat their previous estimate of $0.81 by a large $0.07. The $0.88 number also surpassed the estimates of analyst who on average forecast $0.83. The revenue number wasn't as robust, barely making the top end of the range and missing analyst estimates. With the stock plunging after hours, investors appear to either be placing too much emphasis on the revenue numbers or focusing on the Q2 guidance. Below are the numbers reported for Q1 and the guidance for Q1 provided in the Q4 report.  See the full article at Seeking Alpha . 

Did I read that correctly? Leading highflying networking stock F5 Networks (FFIV) just announced a $200M buyback while reporting Q3 earnings. Wow! FFIV has a forward PE of 30+ so its almost arrogant for management to presume the best use of cash is by buying back stock. Also, with a market cap over $8B this buyback won't provide much of a dent into outstanding shares. The company continues to blow out numbers similar to favorite Riverbed Tech (RVBD) owned in our portfolios so it could be an indication of the 5-10 year growth plan they can envision. Still its a head scratcher unless they are just hoping to buy the next time the market corrects 20% on this stock. And it will happen. Definitely something to watch! Details below from Briefing.com. 4:11PM F5 Networks beats by $0.07, beats on revs; guides Q1 EPS above consensus, revs above consensus; announces $200 mln share repurchase program ( FFIV )   102.54 +1.71 : Reports Q4 (Sep) earnings of $0.79 per share, excluding non-r...

Ok, maybe the Q2 earnings report and movement was surprising to others, but it was clear from the F5 Networks (FFIV) report and 13% surge on Thursday plus other reports from the likes of VMWare (VMW) that Riverbed Tech (RVBD) would likely report a blowout quarter. Whats really surprising is the lackluster jump on Thursday and the monster 14% move on Friday. After today, Riverbed Tech has become the largest position in both the Growth and Opportunistic Portfolios. Details on the earnings report from Reuters : * Q2 adj. EPS $0.25 vs est. $0.22 * Q2 rev $126.2 mln vs est. $119.4 mln * Sees Q3 EPS $0.27 vs est. $0.24 Product sales rose more than 40 percent, marking its fourth consecutive quarter of product revenue increase, the company said in a statement. After the results, S&P analyst Ari Bensinger upgraded the stock to "hold", saying that the networking equipment was experiencing a solid rebound in demand from the enterprise sector. "While we still see a lagging ...

After the close today, F5 Networks (FFIV) posted earnings that easily beat analyst estimates. Considering that F5 Networks has had a much rougher recession then Riverbed (RVBD) its encouraging to see the turnaround. F5 Networks reported an increase in their pipeline and movement of project on hold. All very promising for RVBD even though they aren't exactly the same business they somewhat track each other. If you recall, RVBD had a disappoint Q2 even though sales were up 17%. They were hit somewhat by customers delaying projects and this report by FFIV hints that RVBD might see that those projects ramped up in Q3. That supposed buyout around $34 that we talked about last week might not be enough if RVBD shows similar results. Comments from Reuters on F5s earnings report: Oct 21 (Reuters) - Network-equipment maker F5 Networks Inc's ( FFIV.O ) quarterly profit beat market estimates on increased bookings and improved customer spending, sending its shares up 8 percent. Th...