Arista Network

[Barefoot]

Only competitor still growing market share is Huawei; but I think Huawei will have a hard time growing market share among US and European customers over the next few years, given the growing distrust with the Chinese government.

However, in just less than a month, many countries that initially said they will ban Huawei communication products have reversed their stand. These includes UK, Japan , Italy, India, Czech and Germany. This could be partly due to recent British mobile giant's  O2 glitch that affected millions. Similar glitch happened to Softbank of Japan. Both use G4 communication infrastuctures provided by Ericsson.

https://www.businesslive.co.za/bd/compan...by-glitch/

Do you have a source for those countries reversing their ban? I can't find anything on it.

Maybe we should take with a pinch of salt for all news. Below are some sources.
http://finance.sina.com.cn/chanjing/gsne...8632.shtml

https://economictimes.indiatimes.com/ind...186519.cms

https://www.msn.com/en-xl/europe/top-sto...ar-BBRtmxT

https://www.youtube.com/watch?v=EiHvKIni_UE

[Barefoot]

One more.

https://www.techradar.com/news/o2-confir...huawei-kit

[BRT]

Arista acquired Mojo Networks and prepares to venture into the wifi market. Any insight into the profitability and growth in this market? The corresponding Chinese company I mentioned is already a big player in wifi and enterprise WLAN market. So, it didn't surprise me that Arista is expanding into this segment. The only concern has been that 5G will obsolete wifi technology so it appears that this concern maybe unjustified.

I find that most western analysis left out competition from companies such as Huawei in the switches market but they have in fact already occupied a substantial share in the world market also in the expense of Cisco share. It appears that Arista may not capture the maximum potential market share.

Found an article on the superiority of Arista approach vs Cisco
http://latticework.com/arista-networks/

on 5g vs wifi, i'm reminded of a telstra transcipt i read some time back, part of which i copy below.

"""
Andrew: What I’d probably say, Robyn – that’s right, because we don’t – haven’t really compared them in that way. I mean I think another way to address the question – and this goes to the fixed wireless question, really, which is ultimately in part or perhaps sits behind your question – is that our average customer today on our mobile network uses about 5 gigs a month. The average customer on the nbn uses somewhere between 200 to 250. So, i.e. 50 times as much data. So it’s one thing to watch a – streaming the AFL on your AFL, Telstra AFL app on a 7-inch screen, it’s another thing to project that in –

Robyn: 4K.

Andrew: - high def or 4K cricket on a 62-inch plasma screen in the home while the two kids are in the back study downloading Netflix. And so, there’s no doubt that mobility has an opportunity to create – it’s becoming more efficient, lower cost, but it is a very different paradigm to fix. 
"""

https://links.sgx.com/FileOpen/SGX33%205...eID=536496

[specuvestor]

agree... HD or 8k on a 7" screen is no difference. I suspect mobile streaming is much compressed with the viewer none the wiser.

even iPad original and iPad retina is not so obvious unless you compare the video side by side. Static pictures are more obvious

[Kaimin]

Arista acquired Mojo Networks and prepares to venture into the wifi market. Any insight into the profitability and growth in this market? The corresponding Chinese company I mentioned is already a big player in wifi and enterprise WLAN market. So, it didn't surprise me that Arista is expanding into this segment. The only concern has been that 5G will obsolete wifi technology so it appears that this concern maybe unjustified.

I find that most western analysis left out competition from companies such as Huawei in the switches market but they have in fact already occupied a substantial share in the world market also in the expense of Cisco share. It appears that Arista may not capture the maximum potential market share.

Found an article on the superiority of Arista approach vs Cisco
http://latticework.com/arista-networks/

It's a technical point, but 5G mobile networks are extremely unlikely to displace WiFi. 5G capex is much more expensive - they need a wider spectrum of bandwidth (WiFi spectrums are free) that needs to be paid for in fees to the government, base stations which need to be upgraded (5G will need to overhaul 4G equipment) and on the whole data transmission is much more difficult over the air. WiFi is transmitted over a short range to your router which tends sends it through Singapore's fiber optic network, which is incredibly efficient - I don't think I've ever experienced properly working WiFi that was slower than what I needed. You can see the costs for yourselves now - WiFi is unlimited for maybe $50 a month but mobile is a $2 a gigabyte. As far as I know, the capex involved in building 5G is not any cheaper than 4G. The only thing known about 5G so far is that it will offer greater speed.

[Wildreamz]

https://www.businesswire.com/news/home/2...-Full-Year

Fourth Quarter Financial Highlights

• Revenue of $595.7 million, an increase of 5.8% compared to the third quarter of 2018, and an increase of 27.3% from the fourth quarter of 2017.
  
  
• GAAP gross margin of 62.9%, compared to GAAP gross margin of 64.2% in the third quarter of 2018 and 65.7% in the fourth quarter of 2017.
  
  
• Non-GAAP gross margin of 64.1%, compared to non-GAAP gross margin of 64.6% in the third quarter of 2018 and 65.9% in the fourth quarter of 2017.
  
  
• GAAP net income of $170.3 million, or $2.10 per diluted share, compared to GAAP net income of $103.8 million, or $1.29 per diluted share, in the fourth quarter of 2017.
  
  
• Non-GAAP net income of $182.2 million, or $2.25 per diluted share, compared to non-GAAP net income of $137.3 million, or $1.71 per diluted share, in the fourth quarter of 2017.
  

Full Year Financial Highlights

• Revenue of $2.15 billion, an increase of 30.7% compared to fiscal year 2017.
  
  
• GAAP gross margin of 63.8%, compared to GAAP gross margin of 64.5% in fiscal year 2017.
  
  
• Non-GAAP gross margin of 64.4%, compared to non-GAAP gross margin of 64.8% in fiscal year 2017.
  
  
• GAAP net income of $328.1 million, or $4.06 per diluted share, compared to GAAP net income of $423.2 million, or $5.35 per diluted share, in fiscal year 2017.
  
  
• Non-GAAP net income of $643.3 million or $7.96 per diluted share, compared to non-GAAP net income of $442.8 million, or $5.61 per diluted share, in fiscal year 2017.
  

Trailing PE of circa 30 at current price. I think Arista is fairly priced now, given it's growth trajectory: 25+% top line growth per year and slightly higher net income growth rate.

[Barefoot]

I think miss the boat for this one. Invested in the other china listed networking company and does not quite have enough fund for this one since I started this thread at price $180. Still think it is a good long term buy because networking seems to be booming in coming years. Cisco at such high valuation still manage to rise in price gradually in the last year indicating probably that networking business is booming.