Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of IP-based communications specialist BroadSoft
So what: The company beat earnings and revenue estimates in the just-reported third quarter, and by quite the margin too. Moreover, next-period guidance points to another quarter of strong sales. Impressive as it was, the report still wasn't strong enough to support a stock that had gained 53% over the last three months.
Now what: Networking gear makers have disappointed time and again this earnings season in a building Greek chorus (pun intended) of weak service-provider spending. That gloomy choir includes voices very close to BroadSoft's timbre, such as direct competitors Cisco Systems
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