Checks Show Mixed Picture For F5 Networks (FFIV)

January 15, 2013 3:03 PM EST
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Price: $142.54 -0.21%

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Checks by analyst at William Blair point to a mixed picture for F5 Networks (NASDAQ: FFIV) in Q1. Analysts said they think a still cautious spending environment will hurt results and create problems closing deals. On the positive side, F5's ADC product refresh could make gains on Cisco's (Nasdaq: CSCO) Ace.

"Already our checks indicate significant Cisco ACE replacements happening, including a 7‚Äźfigure deal with a financial services customer. In addition, while we do not have a good read on the service provider vertical (23% of sales in fiscal 2012), F5 management expects a rebound in this segment in the second half of fiscal 2013," said analyst Jason Ader.

In the security space, Ader expects much different results.

"Most channels we spoke with are skeptical that F5 will emerge as a mainline provider of corporate firewalls (a la Check Point (Nasdaq: CHKP), Palo Alto (NYSE: PANW), Cisco, and Juniper (NYSE: JNPR), as F5 typically does not know the security buyer and its technology is still unproven," stated the analyst.

Checks also showed customers are beginning to embrace F5's virtual BigIP edition.

William Blair has an Outperform rating on F5 Networks.

For an analyst ratings summary and ratings history on F5 Networks (NASDAQ: FFIV) click here. For more ratings news on F5 Networks click here.

Shares of F5 Networks closed at $97.19 yesterday.

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