This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tech CEOs: Here's Where the Growth Lies

Stocks in this article: TXN STX FFIV LSI CVLT FIRE MDSO

F5 Networks (FFIV) met analysts' estimates in its third-quarter results in July, although CEO John McAdam identified a cautious spending climate.

"It was nothing as bad as early 2009, but there's definitely some signs of caution ," added the CEO.

To illustrate his point, McAdam noted that F5's hiring remains robust. "This last quarter, we hired just under 100 people," he said. "This quarter, we're hoping to exceed that, probably hiring about 125 people."

With economic issues weighing on Silicon Valley, the Nasdaq has gained just 0.1% during the past month, lagging the S&P 500's modest gain of 1.5%. The Nasdaq has risen more than 12% this year, outpacing the S&P 500's 9.9% gain.

Not all tech companies are feeling the spending burn, as evidenced by strong second-quarter numbers from EMC (EMC). The results marked the company's 10th consecutive quarter of double-digit year-over-year revenue and profit growth.

EMC storage rival CommVault (CVLT) also posted robust results earlier this week, growing its revenue by 22%.

"The quarter was pretty well-balanced -- it started well and it ended well," CommVault CEO Bob Hammer said in an interview. "The momentum is continuing into this current quarter."

Still, CommVault is taking nothing for granted. "The assumption is that IT spending will come under pressure and we're attempting to mitigate that by making sure that our sales opportunity funnel increases at a faster pace," said Hammer. That could involve, for example, focusing sales people on very specific segments of the market and certain CommVault products.

In addition to storage, security and cloud are also hot technologies.

Security specialist Sourcefire (FIRE), which is one of TheStreet's Breakout Stocks, beat analysts' second-quarter estimates on Tuesday.

Todd Headley, the Sourcefire CFO, said in an interview that the firm has largely side-stepped broader economic challenges. "We're probably small enough that we don't see the full effect of that," he said. "Even given the macroeconomic backdrop relative to the technology we provide, there appears to be a growing need for what we do."

Weak third-quarter earnings guidance, however, weighed heavily on the company's stock, pushing its shares down more than 15% on Wednesday.

Cloud specialist Medidata Solutions (MDSO) also reported its second-quarter results on Tuesday, raising its full-year revenue guidance.

Medidata CEO Tarek Sherif shrugged off talk of a spending slowdown. "We're actually seeing quite the opposite," he said. "We had strength in Europe, and I think that really speaks to the value of what we're bringing to our customers."

Shares of the New York-based firm, which provides cloud services to support pharmaceutical and biotech firms' clinical trials, have gained almost 60% this year.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs