This might explains Bluecoat -- they're desparate
- From: "Thomas W Shinder" <tshinder@xxxxxxxxxxx>
- To: "'[ISAserver.org Discussion List]'" <isalist@xxxxxxxxxxxxx>
- Date: Tue, 7 Feb 2006 09:03:43 -0600
Found this today. Might explain the outrageous stuff Bluecoat put in their
Webinar -- they're desparate as all get out. BTW -- if they're the market
leader with only 25K boxes worldwide, the ISA firewall must be the market
leader in the Universe, 'cause we're doing a lot better than that.
By W.D. Crotty (TMF WD40)
February 6, 2006
The largest percentage loser on the Nasdaq Monday is Blue Coat Systems
(Nasdaq: BCSI) <BLOCKED::http://quote.fool.com/uberdata.asp?symbols=BCSI> .
The stock is falling after the company announced
<BLOCKED::http://biz.yahoo.com/prnews/060206/sfm087.html?.v=41> preliminary
third-quarter results that were significantly below expectations.
The 12 analysts who follow the company, whose products control how corporate
employees use the Internet, were expecting a year-over-year 57.9% rise in
revenue to $39 million. Blue Coat pegs sales at no better than $35.1 million
for the quarter ended Jan. 31. Earnings, which were expected to be $0.35 a
share, will come in at $0.14 to $0.18.
In mid-November, Blue Coat provided guidance that growth compared with the
second quarter would be 4% to 7% and that net income would be $0.30 to $0.34
a share. While the company didn't give a reason for the miss, one analyst
reduced the company's rating to market perform.
The acquisition of information security firm Permeo might be at risk. The
deal, announced in early January, was made when Blue Coat's stock was
trading for $45.72 -- not today's $26.30. The stock-plus-cash deal has a
limit of 1.9 million Blue Coat shares and must be approved by Permeo
shareholders.
For now, investors are going to have to wait until Blue Coat releases
details about its latest quarter. While the company has shipped more than
25,000 "proxy appliances," that's the past, and I'd think investors are a
little more concerned with the future.
Sales of the company's products have been growing rapidly. It of course
bears mention that competitors include Cisco Systems (Nasdaq: CSCO)
<BLOCKED::http://quote.fool.com/uberdata.asp?symbols=CSCO> , Network
Appliance (Nasdaq: NTAP)
<BLOCKED::http://quote.fool.com/uberdata.asp?symbols=NTAP> , and Novell
(Nasdaq: NOVL) <BLOCKED::http://quote.fool.com/uberdata.asp?symbols=NOVL>
-- all with strong balance sheets and hearty research and development
budgets.
Blue Coat may not fall further because it's still in a growth market. But,
until the company can explain its poor results and its future plans, I
wouldn't call the stock much more than a speculation.
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