Thu, Jul. 23, 2:56 PM
- Application delivery controller/security hardware vendor F5 (FFIV +6.9%) beat FQ3 estimates on the back of strong software sales, and provided above-consensus FQ4 EPS guidance (revenue was in-line). With growing 100G long-haul optical deployments serving as a tailwind, optical networking hardware vendor Infinera (INFN +9.6%) beat Q2 estimates and provided strong Q3 guidance.
- Also: Optical component vendor Alliance Fiber (AFOP +16%) beat estimates and offered healthy guidance. Strong datacom component demand from cloud service providers was cited.
- A slew of telecom/networking equipment, component, and chip vendors are higher on a day the Nasdaq is down 0.4%. The list includes Infinera rival Ciena (CIEN +1.6%), F5 rival Radware (RDWR +3.3%), and Alliance Fiber peer NeoPhotonics (NPTN +4.7%). Others include Ciena acquisition target Cyan (CYNI +1.8%) and chipmakers Cavium (CAVM +3.6%), PMC-Sierra (PMCS +3%), EZchip (EZCH +2.8%), and InPhi (IPHI +3.7%).
- Broader gains for chip stocks - the Philadelphia Semi Index is up 1.7% after selling off hard yesterday - are likely helping the chipmakers. Cisco, meanwhile, is up 2.2% after striking a deal to sell its share-losing set-top unit to Technicolor.
- During F5's earnings call, new CEO Manny Rivelo stated F5 now leads the virtual (software-based) ADC market, which has sometimes been seen as a major long-term threat to its ADC hardware business, and noted the company saw a 20% Y/Y increase in its deferred revenue balance (driven by services/subscription growth) to $743M. He also disclosed sales chief Dave Feringa is stepping down on Oct. 1; his successor will be named shortly.
- On Infinera's call, CEO Tom Fallon mentioned the company has now invoiced 12 customers for its new Cloud Xpress data center interconnect platform, up from 7 three months ago. For now, long-haul optical still makes up over 90% of revenue - Cloud Xpress growth, the pending launch of a metro aggregation product, and (provided it's approved) the Transmode acquisition should change that. 3 customers accounted for over 10% of Q2 revenue.
Wed, Jul. 22, 4:14 PM
- In addition to beating FQ3 estimates, F5 (NASDAQ:FFIV) is guiding for FQ4 revenue of $500M-$510M and EPS of $1.72-$1.75 vs. a consensus of $504.7M and $1.71.
- Software (virtual ADC/add-on module) sales were a strong point, as were enterprise and U.S. federal demand. Software accounted for over a third of FQ3 product revenue.
- Key numbers: FQ3 product revenue +5% Y/Y to $248.8M; services revenue (driven by past product sales) +15% to $234.8M. GAAP operating expenses +10% to $257.8M. $150M was spent on buybacks. F5 ended FQ3 with $1.35B in cash/investments, and no debt.
- Shares have risen to $125.03 AH.
- FQ3 results, PR
Wed, Jul. 22, 4:06 PM
Tue, Jul. 21, 5:35 PM| Tue, Jul. 21, 5:35 PM | 5 Comments
Wed, Apr. 22, 4:52 PM
- Along with its FQ2 results, F5 (NASDAQ:FFIV) has announced Manny Rivelo, the company's EVP of strategic solutions (has been responsible for "strategic development, product management, and global marketing strategy"), is its new CEO, effective July 1. He's also joining the board.
- Rivelo will replace long-time CEO John McAdam, who announced plans to retire last October. McAdam will remain with F5 as chairman. Al Higginson, chairman since 2004, will move over to the role of lead independent director.
- Though F5 beat FQ2 estimates (more on EPS than revenue), it's guiding for FQ3 revenue of $475M-$485M, below a consensus of $489.4M. EPS guidance of $1.57-$1.60 is in-line with a $1.59 consensus. Not surprisingly (given the issues faced by many enterprise tech peers), F5 is blaming a strong dollar and its impact on EMEA/Asia-Pac demand.
- The ADC/security hardware vendor saw "solid sequential and year-over-year growth in sales to U.S. service providers and enterprise customers" in FQ2, aided by a rebound in $1M+ deal activity. However, EMEA/Asia-Pac sales were below expectations. The deferred revenue balance rose a healthy 23% Y/Y to $721M.
- Shares have fallen to $115.90 AH.
- FQ2 results, PR
Wed, Apr. 22, 4:07 PM
Tue, Apr. 21, 5:35 PM| Tue, Apr. 21, 5:35 PM | 6 Comments
Fri, Jan. 23, 12:27 AM
- Stifel cut F5 (NASDAQ:FFIV) to Hold on account of the company's FQ1 revenue miss and light FQ2 guidance. But Buckingam Research upgraded to Buy due to the resulting nosedive, and a few other sell-side firms defended the ADC/security hardware vendor, generally arguing non-ADC growth opportunities will help the company rebound.
- D.A. Davidson's Mark Kelleher: "F5 offers the most complete application delivery platform in the market. Its [TMOS OS] provides the foundation for a wide variety of Application Delivery modules, allowing the company to continuously expand its total addressable market ... we expects its security portfolio to drive significant growth."
- William Blair's Jason Ader: "We see this as an execution blip for F5 rather than anything reflective of a weak macro environment or structural issues in the business ... In retrospect, we believe that management was overly optimistic on the heels of a stellar second half of fiscal 2014 and misread timing on a handful of large deals in the seasonally soft first quarter."
- Credit Suisse's Vlad Rom is upbeat about F5's exposure to enterprise app deployments and (through its Diameter signaling offerings) 4G buildouts, as well as its security growth. But he cautions "security/wireless product ramps are necessary to drive mid-teens revenue growth," given the core ADC market's growth is set to slow to the mid-single digits. Barclays' Ben Reitzes raised similar concerns.
- Pac Crest's Brent Bracelin notes shares now go for only 10x his 2016 free cash flow estimates on an EV/FCF basis. They finished Thursday trading down 10%.
Wed, Jan. 21, 4:29 PM
- In addition to missing FQ1 revenue estimates (while beating on EPS), F5 (NASDAQ:FFIV) is guiding for FQ2 revenue of $465M-$475M and EPS of $1.48-$1.51, below a consensus of $478.9M and $1.53.
- CEO John McAdam: "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." However, he insists "the number of large deals in the current pipeline is encouraging and indicates [F5] should see a resumption of the recent trend toward larger deals in [FQ2]."
- FQ1 product revenue +10% Y/Y to $240.9M; services revenue +18% to $221.9M. Software revenue rose 44%.
- $750M has been added to F5's buyback authorization, raising its available funds to $930.7M. $150M was spent on buybacks in FQ1, boosting EPS.
- Smaller application delivery controller vendor Radware (NASDAQ:RDWR) is down 2% AH. Barclays' Jan. 14 downgrade of F5 was well-timed.
- FQ1 results, PR
Wed, Jan. 21, 4:10 PM
Tue, Jan. 20, 5:35 PM
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%
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
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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