F5 Networks Points the Way for Riverbed
If you recall, RVBD had a disappoint Q2 even though sales were up 17%. They were hit somewhat by customers delaying projects and this report by FFIV hints that RVBD might see that those projects ramped up in Q3. That supposed buyout around $34 that we talked about last week might not be enough if RVBD shows similar results.
Comments from Reuters on F5s earnings report:
Oct 21 (Reuters) - Network-equipment maker F5 Networks Inc's (FFIV.O) quarterly profit beat market estimates on increased bookings and improved customer spending, sending its shares up 8 percent.
The company also gave a strong outlook for the first quarter.
Fourth-quarter net income increased to $28.4 million, or 36 cents per share, from $19.7 million, or 24 cents per share, a year earlier.
Revenue rose about 2 percent to $175.1 million.
Excluding items, earnings were 50 cents a share.
Analysts expected earnings of 41 cents a share, excluding exceptional items, on revenue of $163.9 million, according to Thomson Reuters I/B/E/S.
For the first quarter, the company -- whose rivals include Cisco Systems (CSCO.O) and Juniper Networks (JNPR.O) -- forecast earnings of 47 cents to 49 cents, excluding items. Analysts were expecting 43 cents a share.
Shares of the Seattle-based company, were up $2.87 at $44.40 in trading after the bell. They closed at $41.53 Wednesday on Nasdaq. They have gained about 84 percent this year. (Reporting by S. John Tilak in Bangalore; Editing by Saumyadeb Chakrabarty)