Sector: Information Technology | Focus: Communications Equipment
HQ: Sunnyvale, California
Financial Risks
The company faces risks related to the pending merger with HPE, including potential business disruptions, regulatory hurdles, and litigation. Economic uncertainty, fluctuating demand, supply chain issues (especially component shortages), competition, and international operations pose significant risks. Financial risks include impairment of assets, changes in tax rates, international operations, and outstanding/future debt. Investment risks include potential losses and liquidity concerns. General risks include internal control weaknesses and the exclusive Delaware forum for disputes.
Financial Upside
The company anticipates increased revenue from the cloud vertical, and higher service revenue from software support and hardware support contracts and SaaS. The company's annual recurring revenue (ARR) has increased, driven by SaaS subscriptions. The company is returning capital to shareholders through dividends. The company expects to continue repatriating cash from outside the U.S. to invest in the business and fund capital returns.
