The Zacks Analyst Blog Highlights: F5 Networks, Alcatel-Lucent, IBM, Oracle and Red Hat

News provided by

Feb 24, 2012, 09:30 ET

CHICAGO, Feb. 24, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include F5 Networks Inc. (Nasdaq: FFIV), Alcatel-Lucent (NYSE: ALU), IBM Corp. (NYSE: IBM), Oracle Corp. (Nasdaq: ORCL) and Red Hat Inc. (NYSE: RHT).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday's Analyst Blog:

F5 Snaps Up Traffix Systems

F5 Networks Inc. (Nasdaq: FFIV) recently completed the acquisition of a provider of Diameter signaling products, Traffix Systems, for an undisclosed amount. The agreement to acquire Traffix was signed earlier this week. The acquisition will further strengthen F5's exposure in the networking market.

A 7-year old Israeli company, Traffix serves the telecommunications industry with its Diameter signaling routers, which are used in next-generation mobile (4G/LTE) and IP Multimedia Subsystem (IMS) service provider networks. Traffix signaling delivery controllers facilitate carrier transitions from 3G networks to 4G/LTE and IMS networks and facilitates subscriber information exchange and connectivity among various network elements.

In telecommunications, 4G/LTE (Long term Evolution)/IMS is the next generation of cellular wireless standards, following the 3G and 2G families.

Mobile data traffic is increasing rapidly, inspiring many mobile operators to switch from a 3G network to advanced networks, to manage the high volume of traffic and provide a high quality customer experience. Diameter is a new concept in IP (internet protocol) signaling protocol, which expedites traffic management and fosters interoperability between service providers as well as IP systems.

As per the communications market research firm Infonetics Research, the Diameter signaling market could grow from $9.0 million in 2011 to $321.0 million by 2016.

F5 develops and sells products that optimize the delivery of network-based applications, and availability of servers, data storage devices, and other network resources. Leveraging Traffix System's capabilities, the company will be able to deliver a flexible architecture to enable its customers to create a smart, converged carrier IP infrastructure. Moreover, the acquisition will help F5 to take a major share in the growing Diameter signaling market.

Though F5 does not expect any material earnings per share contribution from Traffix in its upcoming quarter, we believe Traffix's association with Alcatel-Lucent (NYSE: ALU), IBM Corp. (NYSE: IBM), Oracle Corp. (Nasdaq: ORCL) and Red Hat Inc. (NYSE: RHT) will provide marketing support.

Currently, F5 Networks has a Zacks #2 Rank, implying a short-term Buy rating.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

SOURCE Zacks Investment Research, Inc.