Wednesday, computer networks company F5 Networks Inc. (FFIV), reported an increase in profit for the fourth quarter, helped by a rise in service revenues and decline in expenses. Following the news, the stock gained over 8% in after hours trading. F5's fourth quarter net income increased to $28.35 million or $0.36 per share from $19.70 million or $0.24 per share last year. Non-GAAP net income was $40.05 million or $0.50 per share, up from $33.35 million or $0.41 per share in the prior year period. Non-GAAP adjustments include stock-based compensation, loss on facility exit and sublease, restructuring charges & legal settlement.
On average, thirty analysts polled by Thomson Reuters expected the company to report a profit of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Income from operations rose to $40.14 million from $25.62 million a year earlier.
Net revenue increased to $175.13 million from $171.26 million a year ago. Analysts expected revenue of $163.91 million for the quarter.
In the sequentially preceding third quarter, F5 reported a net income that increased to $22.8 million or $0.29 per share from $19.1 million or $0.23 per share in the same quarter last year Non-GAAP net income was $31.9 million or $0.40 per share, up from $30.2 million or $0.37 per share in the year ago quarter. Revenue for the quarter declined 4.4% to $158.2 million from $165.6 million in the comparable quarter last year.
F5 president and chief executive officer John McAdam commenting on fourth quarter performance of F5 said, "Bookings were up across all geographic regions, especially in North America, as customers began purchasing equipment for new projects and moving forward with projects they had put on hold during the first half of the year."
The Seattle, Washington-based company's total cost of net revenues declined to $36.46 million from $38.91 million in the year earlier period. Cost of revenues for products segment declined to $24.29 million from $26.58 million a year-ago.
Total operating expenses declined to $98.53 million from $106.73 million in the same period last year, helped by absence of $5.27 million loss related facility exit and sublease which was present during the year earlier period.
"During Q4, a slight increase in gross margins combined with strong revenue growth to drive our non-GAAP operating margin to just under 32 percent. As a result, earnings on both a GAAP and non-GAAP basis came in well above our guidance for the quarter," McAdam said.
For full year, net income increased to $91.53 million or $1.16 per share from $74.33 million or $0.89 per share last year. Non-GAAP net income was $134.59 million or $1.68 per share, up from $121.29 million or $1.45 per share in the prior year period. Net revenues dropped to $406.53 million from $452.93 million in the year earlier period.
For the first quarter 2010, the company expect revenue in the range of $182 million to $187 million and GAAP earnings in the range of $0.31 to $0.33 per share. Excluding stock-based compensation expense, the company's non-GAAP earnings target is $0.47 to $0.49 per share.
Analysts expect the company to report earnings of $0.43 per share on revenues of $169.26 million for the first quarter.
Amongst peers, 3Com Corp. (COMS) on September 24, reported a sharp decline in profit for the recent quarter of $7.46 million or $0.02 per share, compared to $79.84 million or $0.20 per share in the prior-year quarter. Excluding one-time items, net income had declined to $30.55 million or $0.08 per share from $43.44 million or $0.11 per share in the year-ago quarter.
Wednesday, FFIV closed at $41.53, down $0.60 or 1.42%, on a volume of 2.72 million on Nasdaq. However, in after hours, the stock gained on better than expected results and was last traded at $44.90, up $3.37 or 8.11%.
In the past 52 weeks, the stock trended in a broad range of $18.41 - $44.19, with a three-month average volume of 1.35 million shares. COMS closed at $3.60, down $0.21 or 3.60%, on a volume of 6.95 million on Nasdaq.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.