F5 Networks Q1 Sales Rise 5%
January 26, 2017
the first quarter of fiscal 2017, F5 Networks reported revenue of $516.0
million, up 5.4 percent from $489.5 million in the first quarter of
GAAP net income was $94.2 million ($1.44 per diluted share), compared to
$89.7 million ($1.28 per diluted share) in the first quarter a year ago.
Excluding the impact of stock-based compensation and amortization of
purchased intangible assets, non-GAAP net income was $130.3 million
($1.98 per diluted share), compared to $120.6 million ($1.73 per diluted
share) in the first quarter of last year.
Investors were looking for a profit
of $1.94 per share on revenue of $517 million.
"As we anticipated, the launch of BIG-IP iSeries, which we successfully
completed in November, was a significant contributor to product revenue
which grew 2 percent year-over-year," said John McAdam, F5 president and
chief executive officer. "iSeries bookings during the quarter
represented approximately 18 percent of appliance bookings and we
believe that percentage will increase during the current quarter with
general availability of the complete family for the entire quarter.
"In addition to strong initial demand for the iSeries, software sales,
including software modules that run on our purpose-built hardware and
Virtual Editions designed to run on any standard hypervisor, continued
to grow as a percentage of product revenue. We expect this trend to
continue in the current quarter, driven by the release of our 40-Gigabit
VEs, with throughput four times faster than previous versions, and by
increasing uptake of iSeries appliances, designed to support more
modules than their predecessors.
"For the second quarter in a row, security sales also accounted for an
increasing percentage of product sales reflecting strong demand for
Access Policy Manager and our firewall products and benefiting from
increased sales of SSL Orchestrator. During the quarter, both SSL
Orchestrator and DDoS Hybrid defender shipped as software modules on
BIG-IP. Beginning this quarter, each will ship as a standalone product
on our new Herculon security platform.
sales were robust in the Americas, APAC and Japan in Q1, while sales in
EMEA remained relatively soft, and were down year over year. As we
emphasized during our Analyst/Investor Meeting in November, the array of
new products we have brought to market recently and those we are
introducing this quarter are closely aligned with major industry trends
and the needs of large organizations worldwide. We believe the migration
of applications to public and private clouds, the build-out of hybrid
cloud infrastructures, the explosion of SSL-encrypted traffic, and the
need to provide security for applications, including the burgeoning
array of IoT applications, all represent major market opportunities in
the current quarter and beyond."
For the second quarter of fiscal 2017, ending March 31st, the company
has set a revenue goal of $518 million to $528 million with a GAAP
earnings target of $1.41 to $1.44 per diluted share and a non-GAAP
earnings target of $1.95 to $1.98 per diluted share.