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January 20, 2011, 11:25 AM EST
By Alex Sherman
Jan. 20 (Bloomberg) -- F5 Networks Inc., the maker of software used for managing computer networks, fell the most in more than eight years after first-quarter revenue and its sales forecast for this period trailed analysts’ estimates.
F5 Networks fell $26.67, or 19 percent, to $112.11 on the Nasdaq Stock Market at 9:42 a.m. New York time. Earlier, the shares slumped as much as 21 percent, the most since April 2002.
“I didn’t think it was going to be a good reaction because we have a track record over the last year-and-a-half of beating, but yes, the reaction has really caught us by surprise,” John McAdam, chief executive officer, said in a telephone interview last night.
Sales rose 41 percent last quarter to $268.9 million, Seattle-based F5 Networks said yesterday in a statement. That missed the $270.6 million average of projections compiled by Bloomberg. The company said second-quarter revenue will be $275 million to $280 million, also lagging behind estimates.
F5 Networks stock has more than doubled in the past year as investors project growth in cloud computing and Internet traffic. The company’s price-to-earnings ratio had soared to 63.37 based on yesterday’s closing price, about four times that of the Standard & Poor’s 500 Index.
Net income rose 90 percent to $55.7 million, or 68 cents a share, from $29.3 million, or 36 cents, a year earlier. Profit excluding stock-based compensation and other costs was 88 cents, topping the 83-cent average of estimates.
Competitors also dropped on F5 Networks’ report. Citrix Systems Inc. fell 4.5 percent to $64.72 on the Nasdaq Stock Market. Riverbed Technology Inc. slid 7 percent to $34.22.
--Editors: Margot Slade, John Lear
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.
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Jan. 20 (Bloomberg) -- F5 Networks Inc., the maker of software used for managing computer networks, fell the most in more than eight years after first-quarter revenue and its sales forecast for this period trailed analysts’ estimates.
F5 Networks fell $26.67, or 19 percent, to $112.11 on the Nasdaq Stock Market at 9:42 a.m. New York time. Earlier, the shares slumped as much as 21 percent, the most since April 2002.
“I didn’t think it was going to be a good reaction because we have a track record over the last year-and-a-half of beating, but yes, the reaction has really caught us by surprise,” John McAdam, chief executive officer, said in a telephone interview last night.
Sales rose 41 percent last quarter to $268.9 million, Seattle-based F5 Networks said yesterday in a statement. That missed the $270.6 million average of projections compiled by Bloomberg. The company said second-quarter revenue will be $275 million to $280 million, also lagging behind estimates.
F5 Networks stock has more than doubled in the past year as investors project growth in cloud computing and Internet traffic. The company’s price-to-earnings ratio had soared to 63.37 based on yesterday’s closing price, about four times that of the Standard & Poor’s 500 Index.
Net income rose 90 percent to $55.7 million, or 68 cents a share, from $29.3 million, or 36 cents, a year earlier. Profit excluding stock-based compensation and other costs was 88 cents, topping the 83-cent average of estimates.
Competitors also dropped on F5 Networks’ report. Citrix Systems Inc. fell 4.5 percent to $64.72 on the Nasdaq Stock Market. Riverbed Technology Inc. slid 7 percent to $34.22.
--Editors: Margot Slade, John Lear
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.
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