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F5 Networks, Inc. (FFIV)

  • Jul. 9, 2014, 11:24 AM
    • F5's (FFIV +1.7%) proprietary TMOS operating system acts as a major competitive advantage, argues D.A. Davidson's Mark Kelleher, who has started coverage with a Buy and $145 PT.
    • Aside from differentiating and creating an ecosystem for F5's bread-and-butter application delivery controllers (ADCs), TMOS has underpinned F5's expansion into adjacent security hardware markets.
    • Kelleher expects F5's security offerings (firewalls, malware protection, policy enforcement, etc.) to continue fueling its top-line growth, and its various partnerships to help it maintain a competitive edge.
    • FQ3 results arrive on July 23.
    | Jul. 9, 2014, 11:24 AM | Comment!
  • May 22, 2014, 7:12 PM
    • F5 (FFIV) has bought, a provider of cloud-based security services for protecting against DDoS attacks. Terms are undisclosed.
    • The purchase follows a string of high-profile DDoS attacks affecting sites/platforms such as Vimeo, Meetup,, and TypePad.
    •'s services will complement various on-premise F5 solutions (inc. firewall and load balancing products) that can be applied towards dealing with DDoS threats. Many peers are also pairing on-premise security hardware/software with cloud services.
    • F5's security hardware has turned into a key growth driver as the company deals with relatively muted demand in its core application delivery controller (ADC) market, as well as some competitive pressure from software-based (virtual) ADCs. F5 mentioned on its FQ2 CC (transcript) it had two multi-million dollar security sales wins during the quarter.
    | May 22, 2014, 7:12 PM | Comment!
  • May 14, 2014, 5:44 PM
    • Cisco's FQ3 beat, above-consensus FQ4 guidance,, and positive CC commentary are providing a lift to networking equipment rivals and component suppliers.
    • Up AH: ALU +1%. JNPR +1.6%. FFIV +0.8%. FNSR +2%. JDSU +1.5%. RVBD +0.9%. JBL (a major Cisco contract manufacturer) +0.8%.
    • Cisco's product orders were nearly flat Y/Y in FQ3 after falling 4% in FQ2. U.S. orders (+7%, with 10%+ increases in enterprise/SMB orders) provided a boost, as did a 4% increase in Northern European orders.
    • The company's service provider orders fell another 5% Y/Y (router/set-top share loss), but that was better than FQ2's 12% drop. Emerging markets (-7% vs -3% in FQ2) also remained weak.
    | May 14, 2014, 5:44 PM | 1 Comment
  • Apr. 23, 2014, 5:27 PM
    • F5 (FFIV) expects FQ3 revenue of $428M-$438M and EPS of $1.33-$1.36, largely favorable to a consensus of $428.7M and $1.33. Shares +2.7% AH. (FQ2 results, PR)
    • Fusion-io (FIO) expects FQ4 revenue to be in-line or up slightly Q/Q relative to FQ3's $100.5M. That suggests revenue will miss a consensus of $107.5M. Gross margin is expected to be in a range of 52%-54% vs. 52.4% in FQ3., and op. margin in a range of -13% to -17% vs. FQ3's -16.7%. Shares -3.9% AH. (FQ3 results, PR)
    • Citrix (CTXS) expects Q2 revenue of $765M-$775M and EPS of $0.57-$0.59, below a consensus of $785.1M and $0.68. But full-year guidance is better: 8.5%-10% revenue growth and EPS of $2.90-$2.95 vs. a consensus for 9.1% growth and EPS of $2.91. Shares +4.7% AH. (Q1 results, PR)
    | Apr. 23, 2014, 5:27 PM | Comment!
  • Apr. 23, 2014, 4:09 PM
    • F5 Networks, Inc. (FFIV): FQ2 EPS of $1.27 beats by $0.02.
    • Revenue of $420M (+19.9% Y/Y) beats by $5.63M.
    • Shares +4.3%.
    • Press Release
    | Apr. 23, 2014, 4:09 PM | Comment!
  • Apr. 23, 2014, 12:10 AM
  • Apr. 22, 2014, 5:35 PM
  • Apr. 14, 2014, 7:07 PM
    • An April Barclays survey of 100 U.S. and European CIOs found 46% expecting their company's IT spending to rise in 1H14, 20% expecting it to drop, and 34% expecting no change. Those figures compare with September survey levels of 43%, 27%, and 30%.
    • Moreover, IT spending growth is seen accelerating in 2H in both the U.S. and Europe. Barclays thinks larger budgets, macro stabilization, and a need for equipment refreshes (due to high utilization rates) could be helping out.
    • At the same time, the firm cautions the spending growth is uneven: Software, networking, security, and cloud services demand is healthy, but servers, storage, and IT services remain soft. Interest in the concept of a software-defined data center is gaining traction, but big data (hyped considerably last year) is losing it for now.
    • Gartner has forecast IT spending will rise 3.2% this year to $3.77T after growing just 0.4% in 2013. Enterprise software (+6.9% to $320B) is expected to lead the way.
    • Barclays thinks its survey bodes well for H-P (HPQ), Juniper (JNPR), F5 (FFIV), Aruba (ARUN), Ingram Micro (IM), and CDW, each of which is rated Overweight.
    • Others that might take heart in the survey results: CSCO, ORCL, SAP, CA, SWI, VMW, CHKP, BRCD, ARW, AVT
    | Apr. 14, 2014, 7:07 PM | 1 Comment
  • Apr. 14, 2014, 9:52 AM
    • Stratasys (SSYS +1.5%) has been started at Buy by Goldman, and 3D Systems (DDD -3.1%) at Neutral. Shares of both companies (like those of many high-beta tech names) were clobbered last week. UBS issued similar opinions for Stratasys and 3D Systems two weeks ago.
    • VMware (VMW +1.3%) has received a two-notch upgrade to Outperform from CLSA ahead of its April 22 Q1 report.
    • F5 (FFIV +4.1%) has been upgraded to Buy by Stifel. Q1 results arrive on April 23.
    • Palo Alto Networks (PANW +1.2%) has been upgraded to Overweight by both Barclays and Stephens.
    • TTM Technologies (TTMI +3.1%) has been upgraded to Buy by Stifel and UBS.
    • CalAmp (CAMP +1.7%) has been upgraded to Buy by B. Riley.
    • STMicroelectronics (STM -2.3%) has been cut to Sell by UBS. Q1 results arrive on April 29.
    • AudioCodes (AUDC +4.1%) has been started at Buy by Needham. Shares rose last week after the Israeli government approved an R&D program involving the company.
    • ChannelAdvisor (ECOM +1.2%) has been started at Buy by Janney.
    • Paylocity (PCTY +1.4%) has received five bullish ratings and one neutral rating on underwriter coverage day. Q2 (QTWO +3.1%) has received six bullish ratings.
    | Apr. 14, 2014, 9:52 AM | Comment!
  • Apr. 10, 2014, 4:01 PM
    • Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
    • Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
    • Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
    • Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
    • Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
    • 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
    | Apr. 10, 2014, 4:01 PM | 16 Comments
  • Apr. 2, 2014, 5:57 PM
    • Juniper's (JNPR) job cut disclosure comes five weeks after new CEO Shaygan Kheradpar unveiled (with Elliott Management's blessing) an "Integrated Operating Plan" that calls for $160M/year in opex savings by Q1 2015, and a 580 bps improvement in op. margin from 2013 to 2015.
    • Juniper, which has ~9.5K employees, expects to record $35M worth of charges in Q1. The company also expects to record $70M worth of charges (starting in Q2) related to plans to dispose of 300K sq. feet of leased facilities, and $20M worth of other charges later this year.
    • Product development related to the application delivery controller (ADC) technology Juniper licensed from Riverbed (RVBD) for $75M in 2012 is coming to an end. Juniper expects to record an $85M Q1 non-cash charge related to the move.
    • Juniper's decision removes one more potential rival for ADC leader F5 (FFIV). Cisco largely exited the ADC market in 2012 in favor of a partnership with Citrix.
    • JNPR -0.6% AH.
    | Apr. 2, 2014, 5:57 PM | Comment!
  • Feb. 10, 2014, 9:51 AM
    • F5 (FFIV +1.1%) has been started at Buy by Dougherty & Co. The company beat FQ1 estimates and issued strong guidance last month.
    • FireEye (FEYE +3.7%) has been started at Outperform by Wells Fargo. Q4 results arrive tomorrow.
    • Maxim (MXIM +1.9%) has been upgraded to Strong Buy by Raymond James.
    • CommVault (CVLT +0.6%) has been upgraded to Outperform by JMP. Shares tanked two weeks ago due to the cautious CC remarks provided with an FQ3 beat.
    • Ingram Micro (IM +1.8%) has been upgraded to Buy by Brean.
    • CalAmp (CAMP +2.2%) has been started at Strong Buy by Midtown Partners.
    | Feb. 10, 2014, 9:51 AM | Comment!
  • Feb. 4, 2014, 1:32 PM
    • A day after Wells Fargo upgraded Palo Alto Networks (PANW +5%) to Outperform, Pac Crest has hiked its PT to $75 from $65, while reiterating an Outperform.
    • The note, which comes 20 days before Palo Alto's FQ2 report, has helped shares move back above $60. They also rallied in December in response to an upbeat Pac Crest note.
    • Separately, Palo Alto and Citrix (CTXS +1.1%) have announced an expansion of their security/networking partnership (previous). Citrix's NetScaler SDX application delivery controllers (ADCs - they analyze Web traffic at the application level and direct it to/from servers) will now support "virtual" instances of Palo Alto's next-gen firewalls.
    • The companies note different instances of Palo Alto's virtual firewall products, known as the VM-Series, can be tailored to the needs of different apps when placed within a Citrix ADC. The firewalls still leverage Palo Alto's proprietary PAN-OS operating system.
    • The partnership is aimed in part at F5 (FFIV +1.4%). F5 has launched firewall and app security modules for its market-leading ADCs, and is attempting to grab security share from incumbents with the help of its full-proxy architecture.
    | Feb. 4, 2014, 1:32 PM | 7 Comments
  • Jan. 23, 2014, 9:12 AM
    | Jan. 23, 2014, 9:12 AM | Comment!
  • Jan. 22, 2014, 5:45 PM
    | Jan. 22, 2014, 5:45 PM | 5 Comments
  • Jan. 22, 2014, 5:34 PM
    • Along with its FQ1 results and FQ2 guidance, F5 (FFIV) announces it's adding $500M to its buyback plan. That raises the company's total available authorization to $781.3M, good for repurchasing 7% of outstanding shares at current levels.
    • As of Dec. 31, F5 had $578M in cash/equivalents to fund buybacks with.
    • Shares now +11.8% AH, making new 52-week highs in the process.
    | Jan. 22, 2014, 5:34 PM | 2 Comments
Company Description
F5 Networks Inc is a developer and provider of software-defined application services designed to ensure that applications delivered over Internet Protocol (IP) networks are available to any user, anywhere, anytime, on any device and on any network.
Sector: Technology
Country: United States