Just as we saw with Riverbed Technology (RVBD) last Thursday, F5 Networks (FFIV) put in a nice 'rebound' quarter which has surpassed a lower bar of expectations that has taken over in the 'networking' space. The company beat on the top and bottom lines (+8 cents), and expectations go forward were in line. The stock is up sharply in the early going and has crossed back over the 200 day moving average for the first time since mid July.
- Network equipment maker F5 Networks Inc reported better-than-expected quarterly results as product sales jumped 20 percent, and forecast a strong fiscal 2012 revenue. The company, which makes products to speed up data over wide area networks (WAN), is benefiting from the need to manage network bandwidth as millions of smartphone and tablet users exponentially grow data traffic.
- July-September net income rose to $67.6 million, or 84 cents a share, from $48.2 million, or 59 cents a share, a year ago. Excluding items, the company earned $1.06 a share, while revenue rose 24 percent to $314.6 million.
- Analysts had expected an adjusted profit of 98 cents a share, on revenue of $308.5 million, according to Thomson Reuters I/B/E/S.
- F5, which competes with Riverbed Technology Inc, expects 2012 revenue to grow at least 20 percent, implying revenue of $1.38 billion or more, ahead of analysts' estimates of $1.35 billion, according to Thomson Reuters I/B/E/S.
- The number one priority is to reaccelerate product revenue growth. We believe we can do that in Q2. We've looked to the sales productivity ... our pipeline, and we think we have a good handle on that, F5 said on a call with analysts.
- The company, however, forecast a first quarter in line with estimates, citing seasonality issues like decreased business from telecom service providers as networks remain closed for the holiday period. For October-December, F5 expects a profit of 99 cents to $1.01 a share, excluding items, on revenue of $315-$320 million. Analysts were looking for adjusted earnings of $1 a share and revenue of $320 million.
Full report here.