F5 Networks (FFIV) Tops Q3 EPS by 2c; Guides In-Line

F5 Networks (NASDAQ: FFIV) reported Q3 EPS of $1.81, $0.02 better than the analyst estimate of $1.79. Revenue for the quarter came in at $496.5 million versus the consensus estimate of $495.29 million.

GUIDANCE:

F5 Networks sees Q4 2016 EPS of $1.92-$1.95, versus the consensus of $1.92. F5 Networks sees Q4 2016 revenue of $515-525 million, versus the consensus of $516.7 million.

“During the third quarter, F5 delivered solid revenue growth and strong earnings despite a relatively challenging spending environment,” said John McAdam, F5 President and Chief Executive Officer. “The Americas and Asia Pacific both contributed strong sequential revenue growth, while EMEA revenues were down from the prior quarter against the backdrop of the UK's referendum to withdraw from the European Union.

“Reflecting steadily increasing deployment of our products in public and private cloud environments, software sales continued to grow as a percentage of overall product revenue. Our expanding footprint in public and private clouds also contributed to sequential growth in sales of our security products during the quarter.”

As previously announced, F5 began the rollout of major product upgrades and a number of new products in Q3. In addition to 100Gb blades for VIPRION, the company introduced version 5.0 of its BIG-IQ management platform, a new standalone appliance for DDoS mitigation, and a new version of TMOS with features designed for the DevOps community and enhanced capabilities for cloud integration. Products scheduled to begin shipping in the current quarter include a refresh of the BIG-IP appliance family and a standalone SSL appliance designed to encrypt and unencrypt traffic in concert with third-party security solutions. New versions of the company’s Virtual Edition products with four times the performance of its existing VE family are scheduled to ship in the first quarter of fiscal 2017.

“I believe the scope and timing of these product introductions will enable our customers and partners to meet the challenges and leverage the opportunities posed by hybrid architectures spanning public and private clouds, as well as more traditional on premise data centers. As a result, I am confident they will help drive a return to product revenue growth over the near term,” McAdam said.

For earnings history and earnings-related data on F5 Networks (FFIV) click here.

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