Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Layers 4 to 7 Fire F5 Results

Switch vendor F5 Networks Inc. (Nasdaq: FFIV) busted out an impressive set of first-quarter results last night, thanks largely to its Layers 4 to 7 switches and traffic management devices.

The company posted quarterly revenues of $60 million, up 66 percent on the same period last year and beating analyst estimates of $54 million (see F5 Reports Q1). F5 earned 26 cents a share, or $10 million, up from the 11 cents or $3.8 million it reported a year ago. Analysts had expected F5 to report 21 cents a share.

Executives on last nights conference call say the performance was boosted by strong growth in the company’s core traffic management business across all geographies. The U.S. accounted for the lion’s share of this, with 59 percent. Japan, EMEA, and Asia/Pacific accounted for around 18 percent, 15 percent, and 8 percent, respectively, according to F5 CEO John McAdam.

Merrill Lynch & Co. Inc. analyst Tal Liani identified the company’s Layers 4 to 7 business as a highlight of the quarter, with product revenues up 26 percent. “We suspect that F5 continues to grow faster than the market and is taking share away from Nortel, particularly from its enterprise customer base,” he says.

F5 has certainly been busy in the Layers 4 to 7 space over recent months, with the company unveiling its long-awaited “Buffalo Jump” traffic management device last year (see F5 Revenues Do a Buffalo Jump).

  • 1