Full report here.
Summary via Reuters; surprising strength in North America although year over year comparisons are extremely easy as fourth quarter 2008 was a disaster for the US economy...
- F5 Networks Inc (FFIV) posted a better-than-expected quarterly profit, helped by strong growth in North America, and forecast second-quarter results above analysts' expectations. The network-equipment maker said it expects to see continued sequential revenue growth in second-quarter and through fiscal 2010. "Our pipeline for future business is very strong," Chief Executive John McAdam said on a conference call with analysts.
- "Market drivers for our business continue to increase at significant rates including the accelerating growth and storage requirement, data center consolidation projects and the significant growth in mobile data and mobile applications," McAdam added.
- F5 Networks, which offers products that help control and optimize Internet traffic within a network, said revenues in North America, which contributed 58 percent in the first quarter, rose 24 percent compared with a year ago.
- First-quarter net income rose to $29.3 million, or 36 cents per share, from $21.4 million, or 27 cents per share, a year earlier. Excluding items, earnings were 52 cents a share. Revenue for F5 rose 16 percent to $191.2 million.
- Analysts expected earnings of 49 cents a share, excluding exceptional items, on revenue of $185.7 million, according to Thomson Reuters I/B/E/S.
- ....forecast second-quarter earnings of 52 cents to 54 cents a share, excluding items, on revenue of $195 million to $200 million. Analysts were looking for earnings of 48 cents a share, excluding items, on revenue of $186.8 million.
- Usually the second quarter is the seasonally softer quarter and the forecast of a sequential growth in the second quarter came in as a surprise for the market, Brigantine Advisors analyst Joanna Makris said.
- "The combination of strong revenue growth and stable gross margins enabled us to add nearly 100 employees in (the first quarter) while maintaining our non-GAAP operating margin at just under 32 percent," McAdam said in a statement.
F5 Networks, Inc. provides technology that optimizes the delivery of network-based applications, as well as the security, performance, and availability of servers, data storage devices, and other network resources.