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F5 Networks Disappoints On Q1 Revenue And Q2 Outlook, Shares Plummet

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F5 Networks, Inc. (NASDAQ: FFIV) announced fiscal first quarter 2015 revenue of $462.8 million, below estimates of $467.25 million and above the $406.5 million reported in the first quarter of fiscal 2014.

Excluding the impact of stock-based compensation and amortization of purchased intangible assets, non-GAAP net income was $114.2 million, or $1.55 per diluted share, above estimates of $1.49 and the $94.8 million, or $1.22 per diluted share, reported in the first quarter of last year.

GAAP net income was $89.1 million ($1.21 per diluted share), compared to $94.0 million ($1.26 per diluted share) in the prior quarter and $68.0 million ($0.87 per diluted share) in the first quarter a year ago.

F5 Networks traded at $106.75 in the after-hours session, down 15.24 percent.

“In addition to the seasonal softness we normally experience in the first quarter of a new fiscal year, product sales during the quarter reflected a marked decrease in the number of deals greater than $1 million,” said John McAdam, F5 president and chief executive officer.

For the current quarter, ending March 31, the company has set a revenue goal of $465 million to $475 million with a GAAP earnings target of $1.07 to $1.10 per diluted share and a non-GAAP earnings target of $1.48 to $1.51 per diluted share.

Analysts had expected the current, second quarter’s revenue to be $478.90 million with non-GAAP EPS of $1.53.

The company also announced that its board of directors had authorized an additional $750 million for the company's common stock share repurchase program. This new authorization is incremental to the $180.7 million currently unused in the existing program which was initially authorized in October 2010.

Posted-In: Earnings News Guidance After-Hours Center

 

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