Today: Santa Clara-based Arista Networks files for $200 million initial public offering after successful debuts of A10 Networks and Aerohive Networks. Also: Silicon Valley tech stocks bounce back on final trading day of first quarter.
The Lead: Arista Networks files for IPO amid Cisco investigation
Following two successful initial public offerings from Silicon Valley networking companies in two weeks, Santa Clara's Arista Networks filed for its own IPO on Monday as more details emerged about possible overseas bribery on the part of sector leader Cisco Systems.
Arista set its initial IPO goal at $200 million in paperwork publicly filed with the Securities and Exchange Commission, though that figure is likely to change in future revisions. The nine-year-old company has illustrious Silicon Valley roots, being co-founded by Sun Microsystems co-founder Andy Bechtolsheim, the first outsider to invest in Google.
The IPO paperwork revealed a rift between the company and another co-founder, frequent Bechtolsheim collaborator David Cheriton, a Stanford University professor who also founded software startup Optumsoft. According to the prospectus, Arista licensed software from Optumsoft in 2004, when the company was founded, but Optumsoft told Arista it had violated the licensing agreement. Cheriton -- Arista's largest shareholder through a trust he has set up -- resigned from the company's board in March.
Arista's filing arrives after two successful IPOs in two weeks from Silicon Valley networking companies. San Jose's A10 Networks, which focuses on software used to run corporate data centers, raised $187.5 million before debuting March 21, and Sunnyvale's Aerohive Networks last week raised $75 million to boost its business of developing networking hardware focused on cloud management and mobile-device access.
Arista focuses on switches, a networking-hardware offering that is dominated by Cisco and other Silicon Valley companies, such as Extreme Networks. Arista is led by a former Cisco executive, Jayashree Ullal, who has been CEO since 2008, and will list on the New York Stock Exchange under the ticker symbol ANET.
The company will go to market with strong financials, producing profits each of its previous three fiscal years and boasting revenue growth of more than 86 percent in 2013, when the company clocked sales of $361.2 million.
SV150 market report: Stocks gain with Cisco inquiry in focus
While its younger rivals push to market, Cisco was faced with a report that claimed federal authorities are investigating possible bribes by company executives in Russia, though Wall Street ramifications were minimal as stocks bounced higher on the final day of the first quarter.
In a Sunday feature, the website Buzzfeed reported, citing anonymous sources, that the San Jose networking giant is being investigated by the Department of Justice and SEC for alleged bribery in Russia. Cisco had previously disclosed the allegations, though the company said at the time that it would be conducting an internal investigation at the request of the two agencies. Buzzfeed claims that Cisco executives worked with Russian resellers of its equipment to offer kickbacks that were funneled to offshore accounts for the purpose of bribing officials. Neither the Justice Department nor the SEC would confirm the report Monday, while Cisco provided a statement that said, "We take our responsibilities as a global business seriously." Cisco still managed a gain Monday on Wall Street, increasing 0.4 percent to $22.42.
Apple declined 12 cents to $536.74 as its second Silicon Valley patent trail with Samsung began in San Jose, with jury selection kicking off the festivities. Oracle jumped 3.4 percent to $40.91 after Gartner reported that it moved past IBM to take second place in the global software market for the first time, trailing only Microsoft, which shuffled its executive ranks Monday. Intel rose 0.8 percent to $25.81 after revealing the specifics about its investment in Silicon Valley big-data startup Cloudera, while rival Advanced Micro Devices gained 3.4 percent to $4.01. Google dropped 0.5 percent to $1,114.51 ahead of its impending stock split, as Forrester Research reported that the Mountain View company's Google+ social network is just as popular as Twitter. San Francisco-based Twitter fell 1.3 percent while bringing on a new executive and expanding its television ambitions. Symantec gained 0.9 percent to $19.97 after Bloomberg News suggested a split-up for the company, and Yahoo stayed steady at $35.90 before the Wall Street Journal reported it is in talks to acquire online video service NDN.
Up: Oracle, Gilead, AMD, Pandora, Salesforce, SolarCity, NetApp, Electronic Arts, VMware, Adobe, SunPower, Applied Materials, Hewlett-Packard, Symantec
Down: LinkedIn, Zynga, Netflix, Tesla, Twitter, Google, Intuit
The SV150 index of Silicon Valley's largest tech companies: Up 12.24, or 0.81 percent, to 1,522.62
The tech-heavy Nasdaq composite index: Up 43.24, or 1.04 percent, to 4,198.99
The blue chip Dow Jones industrial average: Up 134.6, or 0.82 percent, to 16,457.66
And the widely watched Standard & Poor's 500 index: Up 14.72, or 0.79 percent, to 1,872.34
Check in weekday afternoons for the 60-Second Business Break, a summary of news from Mercury News staff writers, The Associated Press, Bloomberg News and other wire services. Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/jowens510.