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Arista bullish for full year results after 47 per cent YoY growth in Q2

Cisco lawsuit will be sorted by Christmas says junior networker

High-performance data centre switching upstart (and Cisco litigation target) Arista Networks has reported 47 per cent revenue growth year-on-year for the quarter ended June 30.

The company's financial release says it recorded US$195.6 of revenue, and a GAAP net income of $24 million (up from $21.6 million for the corresponding quarter in 2014).

Those results were somewhat crimped by the money spent on lawyers, with Arista being sued by Cisco for infringing its intellectual property in both its code and its platforms.

That cost Arista more than $16 million in the first half of the year, but as The Wall Street Journal reports, the company reckons its litigation expenses will peak with another $15 million expected in the third quarter.

The company's also been pursued by OptumSoft, in a curious lawsuit involving one of its co-founders, David Cheriton, suing a company he owns a stake in (there's a summary over at Forbes).

Discussing the company's performance in its earnings call, CEO Jayshree Ullal said Arista isn't seeing the same white-box threat as other vendors have highlighted in the data centre.

Ullal reckons the company isn't seeing a white-box threat in its niche: “We have 3,390 customers. I have seen the white box phenomenon in maybe single-digit customers out of the 3,390”, LightReading says she told the call.

Apart from the famous Wedge, a project in which Arista partners with Facebook, Ullal says Arista is mainly seeing white-boxes mainly in experimental deployments.

Ullal backed up her belief that white boxes aren't a threat with a prediction for further growth in Q3, when she expects the company to generate revenue between $208m and $212m. ®


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