F5 Posts Sales of $463M, up 14% YoY, But Lower Outlook

F5 Networks reported revenue of $462.8 million for the first quarter of its fiscal 2015, down slightly from $465.3 million in the prior quarter and up 14 percent from $406.5 million in the first quarter of fiscal 2014. GAAP net income was $89.1 million ($1.21 per diluted share), compared to $94.0 million ($1.26 per diluted share) in the prior quarter and $68.0 million ($0.87 per diluted share) in the first quarter a year ago.

“In addition to the seasonal softness we normally experience in the first quarter of a new fiscal year, product sales during the quarter reflected a marked decrease in the number of deals greater than $1 million,” said John McAdam, F5 president and chief executive officer. “While this resulted in slower than expected revenue growth for the quarter, the number of large deals in the current pipeline is encouraging and indicates that we should see a resumption of the recent trend toward larger deals in the second quarter.

“From a product perspective we were also encouraged by the continuing strong growth of software revenue, which increased 44 percent year over year. The growing percentage of software as a component of our product offerings highlights increasing customer demand for hybrid solutions that allow greater flexibility in the deployment of application services within and across data centers and out into the cloud."

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