Share of F5 Networks, Inc. (FFIV: Quote) surged nearly six percent in expended trade on Wednesday after the application delivery networking technology provider issued earnings guidance for the second quarter, above Street view.
The company also reported a profit for the first quarter that increased from last year, reflecting double-digit revenue growth. However, both adjusted earnings per share and quarterly revenues missed analysts’ expectations.
“During the first quarter, strong sales to North American enterprises and service providers were offset by a substantial slowdown in U.S. Federal sales. Japan sales were also weak during the quarter, in contrast to continuing strength in Europe and solid year-over-year growth in the rest of the Asia-Pacific region,” President and CEO John McAdam said in a statement.
The Seattle, Washington-based software maker reported net income of $69.49 million or $0.88 per share for the first quarter, up from $66.49 million or $0.83 per share in the prior-year quarter.
Excluding the impact of stock-based compensation and amortization of purchased intangible assets, adjusted net income for the quarter was $90.62 million or $1.14 per share, compared to $82.24 million or $1.03 per share in the year-ago quarter.
On average, 37 analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the quarter. Analysts’ estimates typically excludes special items.
Total revenues for the quarter rose 13 percent to $365.45 million from $322.43 million in the same quarter last year, but missed thirty-six Wall Street analysts’ consensus estimate of $366.74 million by a whisker.
Product sales for the quarter increased to $204.71 million from $196.55 million, reflecting strong demand for BIG-IP 4200v, the first in the company’s series of new ADC appliances, which was introduced in mid-October.
Service revenues improved to $160.74 million from $125.88 million in the prior-year quarter.
Looking ahead to the second quarter, the company expects adjusted earnings in a range of $1.21 to $1.24 per share, on projected revenues between $370 million and $380 million. Street is currently looking for second-quarter earnings of $1.20 per share on revenues of $379.34 million.
FFIV closed Wednesday’s regular trading session at $98.81, up $2.12 or 2.19% on a volume of 3.73 million shares. The stock gained a further $5.89 or 5.96% in after-hours trading.
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by RTT Staff Writer
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