Application delivery networking technology provider F5 Networks, Inc. (FFIV: Quote) reported Wednesday a profit for the third quarter that increased from last year, reflecting double-digit revenue growth. Adjusted earnings per share for the quarter met analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company also provided earnings and revenue guidance for the fourth quarter, below Street view.
"During the third quarter, F5's revenue and earnings continued to grow sequentially and year over year despite a more cautious spending environment. Overall, revenue growth slowed in Q3, but revenue by region was generally consistent with historical patterns; 57 percent for the Americas (primarily the United States) and 43 percent for EMEA and APJ, with EMEA contributing 21 percent of the total," CEO John McAdam said in a statement.
The Seattle, Washington-based software maker reported net income of $72.34 million or $0.91 per share for the third quarter, up from $62.55 million or $0.77 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to $90.58 million or $1.14 per share from $79.38 million or $0.97 per share in the year-ago quarter.
On average, 40 analysts polled by Thomson Reuters expected the company to report earnings of $1.14 per share for the quarter. Analysts' estimates typically excludes special items.
Total revenues for the latest quarter rose 21.3 percent to $352.63 million from $290.71 million in the same quarter last year, but missed thirty-nine Wall Street analysts' consensus estimate of $352.90 million by a whisker.
Product sales for the quarter increased to $207.12 million from $179.33 million, and service revenues improved to $145.52 million from $111.39 million in the prior-year quarter.
"As in the prior quarter, our security offerings were a key driver of product sales and accounted for a growing percentage of total revenue," McAdam noted.
Looking forward to the fourth quarter, the company expects adjusted earnings in a range of $1.16 to $1.19 per share, on projected revenues between $360 million and $370 million. Street is currently looking for fourth-quarter earnings of $1.24 per share on revenues of $377.51 million.
"During the next six to nine months we are on track to deliver several new products, including a refresh of our BIG-IP appliance family, new policy enforcement capability for service providers and an eight-blade VIPRION chassis," McAdam added.
FFIV closed Wednesday's regular trading session at $98.59, up $6.83 or 7.44% on a volume of 4.80 million shares. However, the stock lost $1.07 or 1.09% in after-hours trading.
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by RTT Staff Writer
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