Arista Networks Tops Q1 Estimates

reported stronger-than-expected results for the first quarter. For the current quarter, Arista Networks projects revenue of $183 to $191 million, versus analysts' estimates of $189 million. The Santa Clara, California-based company posted a quarterly profit of $24.5 million, or $0.34 per share, versus a year-ago profit of $12.3 million, or $0.20 per share. Excluding items, the company's earnings rose to $0.50 per share from $0.25 per share. Its revenue jumped 52.8 percent year-over-year to $179 million. However, analysts were estimating a profit of $0.37 per share on revenue of $170.08 million. The average estimate among 17 Estimize users was for earnings of $0.40 per share and revenue of $171.54 million. The company's product revenue climbed to $160 million versus $106 million, while service revenue surged to $19 million versus $11 million. GAAP gross margin shrank to 65.8 percent in the first quarter, from 69.4 percent in the year-ago period. Operating cash flow increased to $20.8 million, versus $17.7 million iin the year-earlier quarter. "I am pleased with our Q1 2015 results, as we made strides in our top four verticals," stated Jayshree Ullal, Arista President and CEO. "Our customer momentum in cloud networking, combined with our profitable growth and disruptive product innovations positions us well for the year." Arista Networks shares fell 3.50 percent to $66.50 in the after-hours trading session.