Analysts at Citi Research have been attending the Mobile World Congress in Spain this week. Here is a list of analysts’ six takeaways from day three of the congress.
1. According to Ericsson ERIC 0.39% CEO
Jan Frykhammar, the company plans to keep opex flat year-over-year (Y/Y) in 2015.
The company intends to ramp-down spending in the second half of the year to balance out large cloud and IP-related spending in the first half of the year.
2. Frykhammar projects little Y/Y change in business mix of coverage versus capacity in 2015, hinting that gross margins will likely also be flat Y/Y for Ericsson. He expects an eventual rise in margins from the new mix, but that rise may not come into play until 2016-2017.
3. Analysts believe that Ruckus Wireless Inc RKUS 1.71% will win the Comcast Corp CMCSA 0.17% wireless deployment as the MSO moves to .11ac.
Analyst do not believe this win is dependent on the timing of Comcast’s deal with Time Warner Cable Inc TWC 0.22%.
4. According to Ruckus CEO Salina Lo, Hewlett-Packard Co HPQ 0.56%‘s proposed acquisition of Aruba Networks Inc ARUN 0.04% would be a net positive for Ruckus in the long-term. HP’s switching business competes with many Aruba partners, such as Juniper Networks Inc JNPR 0.26%, Brocade Communications Systems BRCD 0.4% and Dimension Data NTT 0.73%.
Lo believes this conflict of interest could drive partners toward Ruckus.
5. F5 Networks Inc FFIV 0.02% has seen a strong “create rate” lately for million dollar-plus deals.
6. F5 CEO John McAdam described the company’s partnership with Cisco Systems Inc CSCO 0.1% as “working really well.”
F5 is seeing strong pull-through demand resulting from its partnerships with both Cisco and VMWare Inc VMW 0.59%.
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