Arista Networks reported Q3 revenue of $155.5 million, an increase of 53.0% compared to the third quarter of 2013, and an increase of 12.7% from the second quarter of 2014. GAAP gross margin was 64.9%. GAAP net income came in at $21.9 million, or $0.30 per diluted share, compared to GAAP net income of $11.9 million, or $0.20 per diluted share, in the third quarter of 2013.
“We had good performance in Q3 2014 as we shipped our three millionth port this quarter and achieved a record $155.5 million in revenue, growing 53% year over year,” stated Jayshree Ullal, Arista President and CEO. “The flagship Arista 7500E Spine and X-Series Spline products continue to drive our customer demand.”
Arista also announced that Morgan Stanley & Co. LLC and Citigroup Global Markets, Inc., the lead joint book-running managers and representatives of the underwriters in Arista’s IPO in June 2014, at the request of Arista, have agreed to release the lock-up restrictions for Arista employees for up to 50% of the shares of Arista common stock held by them effective November 11, 2014. This will increase the public float for investors and allow its employees additional time in 2014 for liquidity prior to commencement of its quarter end blackout period.
