Tag Archives: gimo

Gigamon Talks Up Security, Amazon Public Cloud At Analyst Day

Gigamon ( GIMO ) expects its push into security products to gain traction as corporate spending shifts from prevention to detection and containment. Management delivered that message at the company’s analyst day on Tuesday, during which Gigamon also highlighted plans to support public clouds, starting with Amazon Web Services, part of e-commerce giant Amazon.com ( AMZN ). Amazon stock hit an all-time high on Tuesday and has been on a roll since the company posted its Q1 earnings beat on April 28. The IBD Leaderboard stock, however, is extended from both its 603.34 entry and its 638.11 alternative entry, trading Wednesday morning near 708, up a fraction. “In conjunction with its investor day, Gigamon announced field trials for a network visibility product that will work in cloud environments, particularly with Amazon Web Services,” Mark Kelleher, an analyst at D.A. Davidson, said in a research report. “This new product will provide tools vendors with information on data flows, between customer devices within a public cloud, private cloud or hybrid cloud environment. “While initially targeted at the AWS environment, GIMO expects to expand to other public cloud environments, such as Microsoft ( MSFT ) Azure and Alphabet ’s ( GOOGL ) Google. Meaningful revenue from this new offering is not expected until 2017.” Gigamon stock, however, was down 2% in early trading in the stock market today , near 30. Gigamon shares broke out March 11 at a 29.62 buy point, and so they remain within buy range. Gigamon’s roots are in selling communications network hardware appliances that analyze and manage data traffic, but it’s been expanding into security. “Management believes breaches are inevitable, and thus dollars will shift from prevention to detection/prediction/containment — which is where Gigamon plays,” Jason Ader, a William Blair analyst, said in a report. “The network is the most content-rich source of information for all kinds of security tools as the network touches everything, including users, devices, and applications. “But historically, the network was used mainly for connectivity. GigaSecure can look at all traffic and extract the right information and feed it to the right security and analytics tools.” Gigamon stock is up about 13% in 2016 so far. It reported Q1 earnings and revenue that topped estimates, and its shares touched a two-year high at 35 on April 29. Gigamon has an IBD Composite Rating of 95 out of a possible 99, putting it among the top 5% of all stocks in key metrics such as earnings and revenue growth.

Box Seen Narrowing Fiscal Q4 Loss But Remains Deeply In Red

Box ( BOX ), the cloud storage firm whose stock has disappointed since its IPO in January 2015, is expected to remain far from profitability but to narrow its losses, when it reports its fiscal Q4 results after the close Wednesday. Analysts polled by Thomson Reuters expect revenue for the period ended Jan. 30 to soar 31% to $81.8 million, with Box’s per-share loss minus items easing to 29 cents from 37 cents in the year-earlier period. Shares of the online data storage and file-sharing service provider are down more than 10% in 2016, though they traded 0.4% higher midday in the stock market today , near 12.60, and are up nearly 40% since touching an all-time low of 8.96 on Feb. 9. Box has a relatively low IBD Composite Rating of 23. The company is part of IBD’s Internet-Network Solutions group, which ranks No. 120 out of 197 industry groups. Gigamon ( GIMO ) leads the group with a Composite Rating of 89. Box said it had 54,000 paying customers as of Oct. 31, up from 50,000 in the July quarter. Box also says that its paying business customers include 55% of the Fortune 500. Box competes with Microsoft ( MSFT ), Google owner Alphabet ( GOOGL ), startup Dropbox and Amazon.com ‘s ( AMZN ) cloud-based “Zocalo” enterprise document storage service. Under its freemium business model, Box also provides consumers with free personal data storage accounts. Box says that it had 41 million total users as of Oct. 31.

GTT Communications Gets Boost From Enterprise Shift To Cloud

GTT Communications ( GTT ) is getting a lift as large companies use its Internet and ethernet networking connections for cloud-based services, say analysts. GTT, which has made two acquisitions since September, on Thursday reported Q4 revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) that topped views. December-quarter revenue rose 83% to $114.8 million vs. analysts’ consensus estimate of $114.4 million. “We believe organic revenue growth could accelerate as cloud adoption, increasing bandwidth usage and salesforce hiring continues,” said Michael Bowen, a Pacific Crest Securities analyst in a report. In the U.S., McLean, Va.-based GTT competes with Level 3 Communications ( LVLT ), CenturyLink ( CTL ), and Verizon Communications ( VZ ). GTT garners nearly 40% of revenue overseas, where it competes with KPN, Colt Technology,  Deutsche Telekom ( DTEGY ) and Orange ( ORAN ) business services. “GTT’s goal is to provide connectivity for customers to any location in the world with any application in the cloud,” said Jonathan Charbonneau, a Cowen & Co. analyst, in a report. GTT’s stock was up 2% on the stock market today , after popping 12.5% on Thursday. Shares are about even in 2016, but they are down from a high of 25.7 in mid-September. GTT has an IBD Composite Rating of 60. It’s in IBD’s Internet Network-Solutions group, where Gigamon ( GIMO ) is tops with a CR of 93. IBD’s Internet Network-Solutions group is ranked No. 107 out of 197 industry groups. “GTT continues to be a beneficiary of the shift to cloud services, and the need for managed network services from multinational enterprises,” said Oppenheimer analyst Tim Horan in a report. GTT agreed to buy Telnes Broadband for $18 million in February. It purchased One Source Networks in September. Image provided by Shutterstock .