Wednesday, September 10, 2014 9:50:25 PM
".....Ruckus also stands to benefit from Google 's (NASDAQ:GOOGL) fiber-optics network, which got started around Kansas City, Kan., and has expanded into Provo, Utah, and Austin, Texas. Google is expected to roll out the Google Fiber fast-broadband service into more than 30 U.S. cities as well as other countries.
Among the customers that Google wants to target with the network are small to midsize businesses, Trebnick says.
"It hasn't been confirmed, but everybody believes Ruckus will be one of the primary suppliers of Wi-Fi when Google does this," she said.
Ruckus executives wouldn't comment on the Google Fiber rumors.
For now, the company has plenty of business to keep it occupied. Ruckus was founded in 2004 and had its initial public offering in November 2012. It has been profitable since 2009 and expects to keep growing those profits in coming quarters and years.
"We've made significant investments in R&D over last few years, and we're now at a position where revenue is growing faster than R&D spending," Hennessy said. "We have also achieved operating efficiencies that led to higher gross margins."
Ruckus logged second-quarter gross margin of 70%, up from 67.4% the prior year and above Trebnick's estimate of 68.5%. Earnings climbed 83% to 11 cents a share, topping the consensus view of analysts. Revenue gained 26.8% to $81 million, also above consensus.
Analysts polled by Thomson Reuters expect full-year profit of 40 cents a share, more than double the previous year's earnings. EPS for 2015 is seen rising 45% to 58 cents.
"We are in a significant growth cycle for Wi-Fi over the next couple of years because of the proliferation of devices," Hennessy said. "We feel we are in a good position to take advantage of that because of our technology."
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