The delays in customer certification arising from their ongoing patent lawsuit filed by Cisco have delayed part of their revenues, but Arsta Networks, which was recently created, still obtained an orderly result for the fourth quarter of 2017 and for the entire year .
The company announced last Friday US $ 467.9 million in revenues for the fourth quarter of 2017, 42.7 percent more than in the fourth quarter of 2016, and a result of $ 1.6 billion in 2016, 45.8 percent in 2016. Fourth quarter earnings were $ 103.8 million and $ 423.2 million. Whole year.
In part, the results reflect that the long-term demand is coming to an end. The company announced the availability of its solution for what is known as the "945 patent" in September 2016, but as CEO Jayshree Ullal said during the earnings call, customers needed to start certifying that alternative solutions would work in their environments.
"Most of those certifications were completed in the fourth quarter," Ullal said, but "some extended to Q1."
Only the most complex use cases were lost by the end of 2017, she said.
Microsoft provided a highlight for the company. Ullal said Arista was able to expand its business within Redmond's operations, and with international expansion (for example, a data center expansion in Israel), Redmond accounted for 16 percent of the company's sales (as well as did in 2016).
Ullal expects Arista's other clients "in the cloud" to continue to drive their growth, and at the same time that segment will rebalance the business towards non-US revenues (earlier this month, archenemy Cisco made a similar prediction, saying that while North America could be flattened, large clouds need to create data centers closer to users in the rest of the world). Over time, up to 60 percent of Arista's business could come from international markets, he said.
The switch to 100 Gbps Ethernet and 400 Gbps Ethernet is starting, but Ullal said it is a trend that will unfold over many, many years: the current 100 Gbps implementations are serving what she said is a very long tail of ports of 10 Gbps and an increasing number of ports of 40 Gbps.
A similar pattern will be developed at the fastest speeds: 400 Gbps Ethernet will take its place to truncalize traffic driven by 40 Gbps and 100 Gbps workloads. In the majority of Arista's largest clients, she believes that the 400 Gbps trials will begin in 2019.
As we reported last week, Arista won another victory, on February 14 the Federal Court upheld an earlier decision by the Patent Appeals and Appeals Board to invalidate Cisco's "668 patent" (US patent 7,224,668, which covers " security and traffic of planes of call "). flow management ").
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