This Day On The Street
Continue to site
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

Tech CEOs: Here's Where the Growth Lies

F5 Networks (FFIV - Get Report) 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 - Get Report) 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 - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LSI $0.00 0.00%
CVLT $41.14 -3.00%
FFIV $119.96 -0.32%
MDSO $54.54 0.41%
TXN $51.84 0.63%

Markets

DOW 17,725.94 +106.43 0.60%
S&P 500 2,072.02 +8.91 0.43%
NASDAQ 5,001.6190 +14.7520 0.30%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs