Oct. 29, 2014, 4:31 PM
- Along with its FQ4 report, F5 (NASDAQ:FFIV) announces CEO John McAdam plans to retire at the end of FY15 (ends Sep. '15). The board will search for a successor to McAdam, who has been CEO since 2000.
- FQ1 guidance is in-line: Revenue of $460M-$470M and EPS of $1.46-$1.49 vs. a consensus of $464.9M and $1.48.
- FFIV -2.2% AH. FQ4 results, PR
Oct. 29, 2014, 4:11 PM
Oct. 28, 2014, 2:29 PM
- In addition to soundly beating Q3 estimates, Radware (NASDAQ:RDWR) guided on its CC (transcript) for Q4 revenue of $59M-$61M and EPS of $0.25-$0.28, above a consensus of $58.4M and $0.24.
- CEO Roy Zisapel stated Radware is seeing strong demand for both its application delivery controller (ADC) and cybersecurity offerings. ADC sales have been boosted by strong uptake for the recently-launched Alteon NG platform, which (like some rival offerings) provides a slew of performance-optimization and security services to go with basic load balancing.
- ADC market leader F5 (NASDAQ:FFIV) is rallying ahead of tomorrow's FQ4 report. The Nasdaq is up 1.3%
Oct. 20, 2014, 2:28 PM
- Cisco (CSCO -1.7%), VMware (VMW -1.5%), F5 (FFIV -1.5%), NetApp (NTAP -1.5%), Teradata (TDC -3.3%), and SGI (SGI -3.5%) have joined several other enterprise tech names in declining after IBM and SAP each posted disappointing Q3 reports. The Nasdaq is up 1% on the day.
- IBM provided a smorgasbord of bad news: A Q3 miss, soft full-year guidance, the pulling of a $20/share 2015 EPS target, a 15% Y/Y hardware revenue decline, and a 7% Y/Y services backlog drop. In addition, the IT giant said it "saw a marked slowdown in September in client buying behavior."
- Citing the impact of a shift in customer spending towards subscription-based cloud apps from on-premise software (typically paid through an up-front license fee), SAP slashed its full-year op. profit forecast. Q3 revenue was slightly below consensus, and EPS in-line.
- VMware reports tomorrow, F5 on Thursday, SGI on Oct. 29, and Teradata on Nov. 6.
Oct. 10, 2014, 10:58 AM
- Telecom equipment makers and their chip/component suppliers are seeing more pain after Juniper (JNPR -7.5%) and Procera (PKT -32%) issued Q3 warnings (I, II), the latest bad earnings news for an industry that has seen plenty due to soft wireline capex. A few enterprise-focused networking vendors are also having a rough day.
- Cisco (CSCO -3.1%) has fallen below $23.50, and Alcatel-Lucent (ALU -4.3%) below $2.50. Other decliners: CIEN -4.7%. JDSU -4.6%. FFIV -5.3%. ANET -7%. RKUS -5.7%. SONS -4.4%. INFN -2.4%. CYNI -3.5%. AMCC -10%. PMCS -3.4%. NPTN -7.7%.
- Analysts are defending Juniper, arguing (in remarks that also have implications for peers) bad news has been priced in and that telecom capex is likely to improve in 2015. Bulls have argued Web/mobile traffic growth and SDN/NFV investments will ultimately boost capex, in spite of industry service revenue pressures.
- The Nasdaq as a whole is down 1.2%. Chip stocks are off sharply following Microchip's warning and prediction of an industry correction.
- Yesterday: Telecom equipment stocks slump as capex worries persist
Oct. 9, 2014, 1:24 PM
- F5 (NASDAQ:FFIV) is underperforming after Riverbed cut its Q3 guidance on account of soft WAN optimization and virtual application delivery controller (ADC) sales. Riverbed's virtual ADCs compete against F5's physical and virtual ADCs.
- Riverbed's cut comes a day after A10 Networks (another ADC vendor) issued a Q3 warning of its own.
- F5's FQ4 report is expected later this month. The company posted an FQ3 beat in July on the back of strong security hardware sales and growing uptake for its Good, Better, Best bundles.
Sep. 29, 2014, 9:16 AM
- With shares up 33% YTD going into today, Baird has downgraded F5 (NASDAQ:FFIV) to Neutral. Its target remains at $125.
- In addition to the run-up, Baird cites potential weakness in carrier demand. Plenty of telecom equipment and component vendors have reported being affected by soft North American capex.
Aug. 20, 2014, 9:18 AM
- Believing the company could post $7 in EPS in 2015, ISI has upgraded F5 (NASDAQ:FFIV) to Buy. Its target is at $135.
- The firm thinks F5's positioning for network functions virtualization (NFV) and software-defined networking (SDN) has improved, and expects continued security product momentum.
- Shares +1.3% premarket, and making new 52-week highs.
Jul. 23, 2014, 7:13 PM
- F5 (NASDAQ:FFIV) expects FQ4 revenue of $453M-$463M and EPS of $1.46-$1.49. The former is in-line with a $455.8M consensus, while the latter is above a $1.45 consensus.
- The ADC/security hardware vendor declares FQ3 sales were solid in all regions except Japan. Sales of its Good, Better, Best bundles - they feature simpler licensing terms for physical and virtual appliances than prior approaches - grew 49% Q/Q and contributed to major increases in software and security sales.
- Product revenue +20% Y/Y to $296.3M. Services revenue +17% to $203.4M. GAAP sales/marketing spend +15% to $140M, R&D +24% to $67M. Stock repurchases totaled $150.5M.
- Shares +0.5% AH. FQ3 results, PR.
Jul. 23, 2014, 4:08 PM
Jul. 22, 2014, 5:35 PM
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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.
May 22, 2014, 7:12 PM
- F5 (FFIV) has bought Defense.net, 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, Bit.ly, and TypePad.
- Defense.net'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 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.
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, 4:09 PM
FFIV vs. ETF Alternatives
F5 Networks Inc provides Application Delivery Networking (ADN) technology that secures and optimizes the delivery of network-based applications and the security, performance and availability of servers, and other network resources.
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