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F5 Networks, Inc. (FFIV)

  • Jan. 22, 2014, 4:48 PM
    • In addition to handily beating FQ1 estimates, F5 (FFIV) is guiding for FQ2 revenue of $408M-$418M and EPS of $1.23-$1.26, above a consensus of $404.1M and $1.21.
    • FQ1 product revenue +7% Y/Y to $218.6M, after growing just 1% in FQ4. A mid-2013 refresh for F5's application delivery controller lineup likely helped, and so might have licensing policy changes. Services revenue +17% to $187.9M.
    • F5 continues to invest aggressively: Sales/marketing spend +10% Y/Y to $134.8M, R&D +32% to $64.1M. Headcount rose by 165 during FQ1.
    • Shares are close to their 52-week high of $107.99.
    • CC underway. FQ1 results, PR.
    | Jan. 22, 2014, 4:48 PM | 2 Comments
  • Jan. 22, 2014, 4:25 PM
    • F5 Networks, Inc. (FFIV): Q1 EPS of $1.22 beats by $0.03.
    • Revenue of $406.5M (+11.2% Y/Y) beats by $10.23M.
    • Shares +4.6%.
    • Press Release
    | Jan. 22, 2014, 4:25 PM | Comment!
  • Jan. 22, 2014, 12:10 AM
  • Jan. 21, 2014, 5:35 PM
  • Jan. 13, 2014, 9:56 AM
    • H-P (HPQ +3.7%) and Teradata (TDC +1.8%) have been started at Overweight by Atlantic Securities.
    • BlackBerry (BBRY -6.2%) has been cut to Underperform by Oppenheimer following a major rally over the last four weeks. RBC upgraded shares last Friday.
    • F5 (FFIV +3.7%) has been upgraded to Outperform by William Blair.
    • Qihoo (QIHU +4.3%) has been upgraded to Buy by Stifel, and started at Buy by UBS. Shares fell last Thursday following a report questioning the size of the company's search share gains, and rose the day before thanks to an Alibaba investment rumor.
    • Cree (CREE -6.6%) has been cut to Hold by Stifel.
    • Autodesk (ADSK +1.8%) has been upgraded to Overweight by Morgan Stanley.
    • Skyworks (SWKS +4.7%) has been upgraded to Buy by B. Riley.
    • Red Hat (RHT +4.4%) has been upgraded to Overweight by Morgan Stanley.
    • Fortinet (FTNT +2.1%) has been upgraded to Overweight by Morgan Stanley.
    • HomeAway (AWAY +2%) has been upgraded to Overweight by Barclays.
    • Garmin (GRMN +1.1%) has been upgraded to Outperform by Oppenheimer.
    • Nimble Storage (NMBL +2.2%) has been upgraded to Outperform by Pac Crest. The firm started Nimble and Sector Perform just six days ago.
    • Peregrine Semi (PSMI -9.1%) has been cut to Hold by Deutsche.
    • Sanmina (SANM -7%) has been cut to Underperform by Raymond James.
    • Symantec (SYMC -2.3%) has been cut to Underweight by Morgan Stanley.
    • NCR (NCR +2.2%) has been started at Overweight by JPMorgan, and added to the firm's Focus List.
    • Vipshop (VIPS +1.8%) has been started at Buy by UBS.
    • Parametric Sound (PAMT +4.5%) has been started at Strong Buy by Needham.
    | Jan. 13, 2014, 9:56 AM | 2 Comments
  • Dec. 30, 2013, 7:46 PM
    • As part of its major Domain 2.0 infrastructure project, AT&T (T) has sent a request for information (RFI) to equipment suppliers asking them to submit ideas and architectures that support software-defined networking (SDN) - the shifting of network intelligence to software-based controllers that interact with switches/routers.
    • MKM's Michael Genovese predicts AT&T's RFI will likely "have significant long-term consequences" for the telecom equipment industry. He sees the impact being "most negative" for Cisco (CSCO), and a positive for Ciena (CIEN), F5 (FFIV), Finisar (FNSR), and early data center SDN software leader VMware (VMW, EMC)
    • AT&T, like others, is enthusiastic about SDN's potential to lower management costs, improve network efficiency, speed the provisioning of new services, and allow "white box" switches/routers to take the place of proprietary hardware.
    • The last feature has many Cisco investors nervous, given its potential to increase competition and pressure margins. John Chambers has declared white box hardware (already embraced by many Web/cloud companies) to be a major long-term threat.
    • Cisco is counting on its powerful Insieme hardware/software and ACI architecture (meant to adapt to the needs of apps/services) to help neutralize the SDN threat. But Genovese thinks ACI "seems too complex and proprietary compared to more white box-oriented architectures."
    • Regarding VMware, Genovese believes the company's NSX platform (combines SDN with other features) has "a strong chance of being selected as the Data Center virtualization platform." Strong uptake is expected for NSX, which has won the support of many Cisco rivals, starting in 2015. Major carrier SDN adoption is expected to arrive later.
    | Dec. 30, 2013, 7:46 PM | 2 Comments
  • Dec. 12, 2013, 11:51 AM
    • Cisco (CSCO -2.3%) is now targeting annual revenue growth of 3%-6% over the next 3-5 years, down from a prior 5%-7%, says CFO Frank Calderoni states at the networking giant's analyst meeting. In addition, Calderoni says Cisco's FY14 (ends July '14) revenue growth outlook is "basically" in-line with a Street forecast for a 4% decline.
    • Cisco is now aiming for services revenue growth of 7%-10% over the next 3-5 years, down from 9%-11%; services accounted for 22% of Cisco's Oct. quarter revenue. Businesses related to "enabling the cloud" (a somewhat nebulous term) are expected to show a 12%-18% growth rate.
    • Cisco, already pressured by John Chambers' macro comments, continues to trade lower. Many networking equipment peers and component/chip suppliers are also selling off; in addition to Cisco, Ciena's mixed FQ4 results and slightly soft FQ1 guidance could be playing a role here.
    • Notable networking equipment/component/chip decliners: JNPR -3.1%. BRCM -2.5%. PKT -2.8%. FFIV -2.2%. ERIC -2.1%. JDSU -1.9% (getting pulled from the S&P 500). AFOP -5.5%. CAVM -1.7%. AMCC -1.8%. BRCD -1.8%. MRVL -1.6%. ARUN -1.7%. CALX -1.7%.
    | Dec. 12, 2013, 11:51 AM | 2 Comments
  • Nov. 25, 2013, 6:45 PM
    • F5's (FFIV) new buyback funds are good for repurchasing 4.7% of outstanding shares at current levels. (8-K)
    • On its Sep. quarter CC (transcript), F5 stated it spent $50M on buybacks during the quarter, and that it had $181M remaining on its authorization.
    | Nov. 25, 2013, 6:45 PM | Comment!
  • Nov. 13, 2013, 8:34 PM
    • Cisco's (CSCO) dispiriting Jan. quarter guidance and Oct. quarter order data has produced an AH selloff in enterprise IT and telecom equipment names, as well as a couple of the companies supplying them. NetApp's below-consensus guidance might not be helping either.
    • HPQ -2.1% AH. IBM -1.1%. ALU -2%. FFIV -1.9%. CIEN -0.9%. CAVM -3%. BRCM -1.3%.
    • Cisco's slumping FQ1 service provider (-13% Y/Y) and emerging markets (-12%) orders are bound to fuel concerns about carrier capex and macro trends. At the same time, it's worth noting Juniper and Alcatel-Lucent have been seeing better router sales to carriers (though not to Asia), and that Huawei has been doing better in emerging markets.
    • The rest of Cisco's order data for major regions and customer groups was relatively better, but not exactly encouraging. Americas orders -2%, EMEA -4%, Asia-Pac (hurt by emerging markets weakness) -9%. Enterprise orders +2%, commercial (SMBs) +1%, public sector -1%.
    • Switch sales (31% of revenue) rose 3% Y/Y, while routers (17% of revenue) fell 1%. Collaboration rose 1%, and service provider video fell 14% due to set-top weakness. Cisco's ASR 9000 edge router line, which EZchip (EZCH) supplies network processors for, grew 20% in FQ1 vs. 43% in FQ4.
    • Data center (UCS servers) had another strong quarter, growing 44%, but still only accounts for 5% of revenue. Wireless (dominated by Wi-Fi gear) grew only 8% after growing 32% in FQ4 (could be a negative for ARUN and RKUS).
    • John Chambers was asked on the CC (transcript) if the NSA spying uproar was affecting Cisco. He admitted it's a problem in China, but denied it was a major issue elsewhere.
    | Nov. 13, 2013, 8:34 PM | 5 Comments
  • Oct. 24, 2013, 9:56 AM
    • Angie's List (ANGI -3.9%) has been cut to Neutral by B. Riley after missing Q3 estimates and issuing below-consensus Q4 revenue guidance. However, shares have pared the majority of yesterday's AH losses.
    • F5 (FFIV +1.6%) has been cut to Neutral by BofA/Merrill after beating FQ4 estimates and issuing mixed FQ1 guidance. Shares have given back most of yesterday's AH gains.
    • Fusion-io (FIO -23.6%) has been cut to Equal Weight by Morgan Stanley after providing FQ1 guidance that was far below consensus, and disclosing its CFO and sales chief are leaving.
    • Akamai (AKAM -9.3%) has been cut to Neutral by Macquarie after providing disappointing Q4 guidance to go with a Q3 beat and buyback announcement.
    • Citrix (CTXS +4.2%) has been cut to Neutral by Susquehanna after providing soft (but better-than-feared) Q4 guidance to go with Q3 numbers that were slightly above the guidance ranges given in a recent warning.
    • Rogers (RCI -2.3%) has been cut to Neutral by Macquarie after posting Q3 results.
    • Cadence (CDNS -6.2%) has been cut to Hold by Needham after slightly missing Q3 revenue estimates and providing soft Q4 revenue guidance.
    • Vipshop (VIPS +0.9%) has been started at Outperform by CLSA.
    | Oct. 24, 2013, 9:56 AM | Comment!
  • Oct. 23, 2013, 4:08 PM
    • F5 (FFIV): FQ4 EPS of $1.26 beats by $0.07.
    • Revenue of $395.3M (+9% Y/Y) beats by $10.7M.
    • Expects FQ1 revenue of $390M-$400M and EPS of $1.17-$1.20 vs. consensus of $389.6M and $1.20.
    • Shares +9.6% AH. CC at 4:30PM ET. (PR)
    | Oct. 23, 2013, 4:08 PM | 3 Comments
  • Oct. 23, 2013, 2:23 PM
    • The soft Q4 top-line guidance provided with Juniper's (JNPR -5.9%) Q3 beat has led shares to fall below $20. Several peers are also off on a down day for tech: FFIV -4.3% (reporting after the close). DRWI -3.9%. PKT -2.8%. RKUS -2.6%. CIEN -2.4%. RVBD -2.2%.
    • On its CC, Juniper attributed its guidance to U.S. federal weakness caused in part by the government shutdown, and called the macro environment "dynamic." The company also disclosed it's cutting another 280 jobs (~3% of its workforce) in Q4, and that it's in the "later stages" of its search for a replacement for departing CEO Kevin Johnson.
    • Some of the job cuts are related to Juniper's decision to kill off its MobileNext 3G/4G infrastructure software line.
    • The sell-side is nervous about declining enterprise sales, caused in large part by security share losses. Juniper promises a resumption of security growth in 2014; favorable comps should make that easier.
    • Carrier routers continue to be a bright spot: MX series edge router sales rose  15% Q/Q, and core router sales 11% Q/Q. Both Cisco and Juniper have been seeing strong edge router demand in recent quarters.
    • Juniper also states it's seeing healthy carrier demand in all three major geographies. However, Americas demand is generally stronger than EMEA and Asia-Pac demand.
    | Oct. 23, 2013, 2:23 PM | Comment!
  • Oct. 23, 2013, 12:10 AM
  • Oct. 22, 2013, 5:35 PM
  • Oct. 15, 2013, 10:05 AM
    • A week after some of them temporarily fell in response to Citrix's warning, enterprise IT names are slumping on account of Teradata's Q3/2013 warning, which was largely the result of weaker-than-expected Asian numbers.
    • Three other data warehousing/business intelligence software providers - Informatica (INFA -4.4%), MicroStrategy (MSTR -4.1%), and Qlik (QLIK -3.3%) are among the biggest decliners. The companies rallied in August in response to Teradata's better-than-feared Q2 report.
    • Other decliners: EMC -1.8%. NTAP -2.1%. CVLT -2.5%. FFIV -2%. JIVE -2.2%. NOW -2%.
    • Teradata isn't alone among enterprise IT names in seeing its Asian ops underperform. Cisco and Oracle have reported similar issues.
    | Oct. 15, 2013, 10:05 AM | Comment!
  • Oct. 10, 2013, 12:02 PM
    • "Investors shouldn't read this as purely a macro-driven issue," says Wells Fargo's Jason Maynard about Citrix's (CTXS -11.1%) Q3 warning. He believes Q3 enterprise software spend "trended better than expected," even if a demand tailwind hasn't yet emerged.
    • Maynard thinks Citrix's Q3 shortfall could be due to "some combination" of weaker NetScaler application delivery controller (ADC) sales (gaining share lately), "execution issues" related to a transition towards mobile software sales, and smaller deal sizes. He also thinks sales of mobile device/app management software simply might not be able to offset "sluggish" PC virtualization sales. Nonetheless, he reiterates an Outperform and $88-$89 PT.
    • Piper's Mark Murphy thinks VMware (VMW +1%) is providing tougher competition for Citrix in PC virtualization. "VMware resellers had noted Citrix customers approaching them 'more and more,' [they] stated that traction [for] VMware’s desktop virtualization solution (View) is ‘exploding.’"
    • VMware mentioned on its Q2 CC its end-user computing (PC/mobile software) bookings rose at a mid-teens Y/Y rate. The company recently hired ex-SAP exec Sanjay Poonen to run the business.
    • BMO is defending Citrix ADC rival F5 (FFIV +1.3%), arguing the company's Sep. quarter results should be solid.
    | Oct. 10, 2013, 12:02 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