BCSI Posts Solid Results For FQ3 Reflecting Solid Competitive Positioning

Analysts at ThinkEquity Partners maintain their "buy" rating on Blue Coat Systems Inc (NASDAQ: BCSI), while raising their estimates for the company.

According to ThinkEquity Partners, Blue Coat Systems has reported its FQ3 EPS and revenues significantly ahead of the estimates and the consensus, driven by year-end enterprise budget flush, improved closure rates and continued solid expense management. “We believe that Blue Coat is starting to see the benefits of its restructuring effort on the sales, services, and R&D fronts in the form of improved sales execution and better closure rates,” the analysts say.

“We continue to believe that the company's differentiated focus on the Application Delivery Network is driving a more competitive value proposition for customers looking for a broader range of functionality,” the analysts add. ThinkEquity Partners has raised its EPS estimates for FY10 and FY11 from $1.20 to $1.27 and from $1.55 to $1.60, respectively.

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