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F5 Networks ( FFIV ) late Wednesday reported mixed fiscal Q2 results and forecast current-quarter profit above estimates, with revenue guidance below views. The Seattle-based data center gear maker said March-quarter EPS minus items rose 6% to $1.68 while revenue rose 2% to $483.7 million. Analysts had estimated $1.63 and $486.2 million. “F5 Networks reported mixed March-quarter results with revenue falling below expectations, but lower taxes and an aggressive share repurchase helped EPS come in better than consensus,” said Troy Jensen, analyst at Piper Jaffray, in a research report. F5 is the leading maker of application delivery controllers (ADCs)– electronic boxes that direct data traffic to computer servers. Top rivals include Cisco Systems ( CSCO ) ( IBD ). The company forecasts current-quarter revenue of $495 million at its midpoint, up 2.4% from the year-ago quarter and below. consensus estimates of $503 million. It expects EPS in a range of $1.77 to $1.80, up from $1.67 and above analyst consensus of $1.74 per share. “Management guided revenue below the Street, citing ongoing uncertainty in the macro and IT spending environment and potential pauses ahead of the new product cycle,” said Jason Ader, an analyst at William Blair, in a research report. “Looking beyond the current quarter, even with a product refresh cycle on the horizon, we believe F5 will struggle to grow its product sales on a sustainable basis due to multiple headwinds from a maturing on-premise ADC market, competitive pressure from the public cloud, and a stand-alone security portfolio that has so far been unable to compete effectively in an already crowded security market,” Ader wrote. F5 Networks stock was up 2.5% in premarket trading Thursday, near 96 and just about even for 2016. Scalper1 News
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