Ruckus Wireless Gets Better, but Is It Enough?
Ruckus Wireless' posted much-improved results in the third quarter but signs of hypergrowth are still missing, Fool contributor Tim Beyers says in the following video.
Why does it matter? Hypergrowth is what you get when a business with technical advantages finds a niche market where alternatives are noticeably (and in some cases, painfully) inferior. Ruckus claims an edge in how it makes otherwise dumb Wi-Fi technology much smarter and more efficient for its carrier customers, Tim says.
Trouble is, the numbers don't reflect the sort of outsized growth you'd expect. Revenue grew 17.7% to $68.9 million in Q3, resulting in $0.05 a share of non-GAAP earnings. Both figures beat estimates, yet product revenue grew only 16.5%. Far less than you'd want or expect from a business that purports to exhibit patentable advantages, Tim says.
Should current Ruckus investors sell, or does the stock's recent underperformance mark a buying opportunity? Tim answers this question and more in the video. Please watch now and then leave a comment to let us know what you think.
Apple's newest iPad Mini with Retina display might be hard to come by this quarter, given all the reports of supply constraints. Well, we're going to be sure to get a few -- and give them away! That's right: For the first time ever, The Motley Fool is hosting a contest where you can win a free iPad Mini with Retina display. All you have to do is tell us why you love The Motley Fool by clicking here! We'll pick the three most Foolish submissions to receive a free iPad Mini with Retina display.
See full terms and conditions by clicking here.
The article Ruckus Wireless Gets Better, but Is It Enough? originally appeared on Fool.com.Fool contributor Tim Beyers owns shares of Apple. The Motley Fool recommends Apple and Ruckus Wireless. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.