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Nimble Storage (NMBL) Reports Q4 Loss; to be Acquired by HPE
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Nimble Storage, Inc. announced fourth-quarter fiscal 2017 results. It reported a loss of 41 cents a share, narrower than the Zacks Consensus Estimate of a loss of 42 cents. Revenues of $117 million topped the consensus mark of $113.5 million and increased 30% year over year.
The announcement of Nimble’s $1 billion takeover by Hewlett Packard Enterprise (HPE - Free Report) was widely cheered by investors. The stock soared 46% in yesterday’s trade. Per the agreement, the company will pay $12.50 for every outstanding shares of Nimble, representing a net cash price of about $1 billion. Apart from this, Hewlett Packard will make a payment of $200 million for Nimble’s unvested equity awards. The takeover is expected to be completed by April. Nimble will become a subsidiary of Hewlett Packard Enterprise and will be delisted from the indices.
Back to quarterly numbers, Nimble reported non-GAAP loss (excluding stock based compensation) per share of 12 cents, flat year over year.
Nimble credited strong AFA bookings for the good performance. AFA bookings were up 67% sequentially. The company added 750 new customers. Overall, the company’s customer base grew 7.9% sequentially, taking the total count to 10,200 customers.
The company’s revenues from products increased 29.7% to $94.8 million in the quarter, while the same from support and services business improved a robust 30.6% to $22.2 million.
The company’s gross margin (non-GAAP) was 65.8%, a decrease of 60 basis points (bps) from the year-ago quarter. Non GAAP operating loss widened to $10.6 million from $9.4 million reported in the prior-year quarter.
Nimble Storage, Inc. Price, Consensus and EPS Surprise
Nimble Storage exited the quarter with cash and cash equivalents of $184.8 million, compared with $211.2 million as of Jan 31, 2016.
In fiscal 2017, the company used cash from operating activities to the tune of $15.6 million. In the fiscal, capex was $23.9 million.
To Conclude
Nimble Storage is positioning itself to benefit from the ongoing shift to flash-centric architectures from the conventional disk-centric architectures with its Adaptive Flash platform. Meanwhile, the company has been acquiring large enterprise customers and equally concentrating on growing its mid-size customer base. Nimble struck a deal with Lenovo that will enhance its converged infrastructure solutions portfolio.
The company launched AF-series All Flash Arrays storage equipment that relies solely on flash memory chips. Analysts view this as a big positive for the company that will allow it to gain traction in the all flash segment. However, they are wary of stiff competition from existing players like EMC and Pure Storage, which might weigh on Nimble’s margins.
With the takeover, Nimble stands to gain from Hewlett Packard’s expertise in the tech space and huge resources.
Currently, Nimble has a Zacks Rank #3 (Hold). Nimble shares grew 69.09% compared with the Zacks Computer Storage devices industry’s gain of 46.09% over the past one year.
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp and Leaf Group Ltd. . While Tech Data sports a Zacks Rank#1 (Strong Buy), Leaf Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data and Leaf Group have yielded positive average earnings surprises of 7.90% and 27.94%, respectively.
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Nimble Storage (NMBL) Reports Q4 Loss; to be Acquired by HPE
Nimble Storage, Inc. announced fourth-quarter fiscal 2017 results. It reported a loss of 41 cents a share, narrower than the Zacks Consensus Estimate of a loss of 42 cents. Revenues of $117 million topped the consensus mark of $113.5 million and increased 30% year over year.
The announcement of Nimble’s $1 billion takeover by Hewlett Packard Enterprise (HPE - Free Report) was widely cheered by investors. The stock soared 46% in yesterday’s trade. Per the agreement, the company will pay $12.50 for every outstanding shares of Nimble, representing a net cash price of about $1 billion. Apart from this, Hewlett Packard will make a payment of $200 million for Nimble’s unvested equity awards. The takeover is expected to be completed by April. Nimble will become a subsidiary of Hewlett Packard Enterprise and will be delisted from the indices.
Back to quarterly numbers, Nimble reported non-GAAP loss (excluding stock based compensation) per share of 12 cents, flat year over year.
Nimble credited strong AFA bookings for the good performance. AFA bookings were up 67% sequentially. The company added 750 new customers. Overall, the company’s customer base grew 7.9% sequentially, taking the total count to 10,200 customers.
The company’s revenues from products increased 29.7% to $94.8 million in the quarter, while the same from support and services business improved a robust 30.6% to $22.2 million.
The company’s gross margin (non-GAAP) was 65.8%, a decrease of 60 basis points (bps) from the year-ago quarter. Non GAAP operating loss widened to $10.6 million from $9.4 million reported in the prior-year quarter.
Nimble Storage, Inc. Price, Consensus and EPS Surprise
Nimble Storage, Inc. Price, Consensus and EPS Surprise | Nimble Storage, Inc. Quote
Nimble Storage exited the quarter with cash and cash equivalents of $184.8 million, compared with $211.2 million as of Jan 31, 2016.
In fiscal 2017, the company used cash from operating activities to the tune of $15.6 million. In the fiscal, capex was $23.9 million.
To Conclude
Nimble Storage is positioning itself to benefit from the ongoing shift to flash-centric architectures from the conventional disk-centric architectures with its Adaptive Flash platform. Meanwhile, the company has been acquiring large enterprise customers and equally concentrating on growing its mid-size customer base. Nimble struck a deal with Lenovo that will enhance its converged infrastructure solutions portfolio.
The company launched AF-series All Flash Arrays storage equipment that relies solely on flash memory chips. Analysts view this as a big positive for the company that will allow it to gain traction in the all flash segment. However, they are wary of stiff competition from existing players like EMC and Pure Storage, which might weigh on Nimble’s margins.
With the takeover, Nimble stands to gain from Hewlett Packard’s expertise in the tech space and huge resources.
Currently, Nimble has a Zacks Rank #3 (Hold). Nimble shares grew 69.09% compared with the Zacks Computer Storage devices industry’s gain of 46.09% over the past one year.
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp and Leaf Group Ltd. . While Tech Data sports a Zacks Rank#1 (Strong Buy), Leaf Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data and Leaf Group have yielded positive average earnings surprises of 7.90% and 27.94%, respectively.
8 Stocks with Huge Profit Potential Just released:
Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>