One Small Cap Cyber Security Stock With Tremendous Upside

Earlier in February, I penned down an article on Gigamon (GIMO), which was one of my best small cap picks in the market. Since then, shares of Gigamon have appreciated over 25% as the company delivered stellar earnings. Going forward, I still think Gigamon has great upside potential and with the company expected to report its quarterly earnings today, I think investors should accumulate the stock.

In 2015, Gigamon increased its addressable market to more than $6 billion. The company smeared the power of persistent visibility to the world of security via its first to market security delivery platform.
Gigamon also prolonged its leadership and market share throughout 2015 and started this year with some significant robust tailwinds. Gigamon has also demonstrated its ability to perform well by delivering solid lucrative growth in all four quarters of 2015.

Q4FY15 results and full year highlight throw light on the value difference and imminent scale of the company, technology and solutions. Gigamon delivered revenue of $67 million, signifying 30 percent growth compared to the same period in 2014, with the price proposition of Gigamon’s software continuing to magnify. Gigamon’s gross margin escalated to an impressive 83 percent in the last quarter as well.

Apart from this, Gigamon lengthened its customer base by approximately 300 new accounts comprising international organisations. The customers are satisfied with the services provided by the company and are in favour of upgrading the existing installations of Gigamon technology and solution. Furthermore, with the attention of the security market shifting towards a solution, it fortifies the GigaSECURE platform that was launched in the third quarter of 2015.

With time, Gigamon’s technology has turned into an enabling force that permits the customers to advance and move their underlying physical and virtual substructure to the new and latest technologies, new topologies and configuration, without mislaying visibility to the traffic passing through their environment.

On the other hand, Gigamon holds a robust position in the North American market, and its investment in international markets is displaying solid returns, with consecutive top-line growth in EMEA of approximately 50 percent.

As a matter of fact, Gigamon has surged the relevancy of the information that they receive which allows them to offer greater value for mutual customers. At present, Gigamon comprises of 60 companies in its ecosystem partnership, comprising, Cisco, FireEye, Palo Alto Networks, Imperva, RSA etc. Recently, the company introduced combined solutions with Splunk, RSA and Blue Coat.

With a growing client list and escalating business, Gigamon is worth the premium and the stock still has great upside in my opinion.
Published on Apr 29, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

Posted in ...