Boston, MA 10/25/2013 (wallstreetpr) – Provider of technology to secure and optimize the network based application delivery, F5 Networks, Inc. (NASDAQ:FFIV) has surprised the street with better than expected results for its fourth quarter.
Company declared quarterly revenue of $395.3 million when the analyst community were expecting a lower $384.64 million. On the earnings front too, company came out with better results of $1.26 of net income per share. This was way above analyst expectations of $1.19 per share. Company management is quite upbeat about the trend and has escalated its targets for first quarter of 2014 too. Company now expects itself to do revenues close to $400 million and net income of $1.17 to $1.20 per share. These figures too exceed consensus of $389 million for revenues.
Company’s CEO John McAdam has attributed this strong showing to the strong demand for the new product ranges and increasing presence in newer emerging geographies. Company has also said that it received better than expected sales of its principal product ADCs, which are deployed in web and application servers to balance traffic flow and for computation of network intensive functions. This ADC also includes company’s range of highly scalable VIPRION systems.
Company’s shares are currently trading at $85.15 and have been moving in a tight range for last 6 months. If technical analysts are to be believed, then there seems to be heavy rotation in calls for F5 Networks. The trend in simple term means that there is a possibility to strong upmove in near future. Volatility figures have also decreased and are near just 30% of what was witnessed in same quarter last year. But with one year high not far at $108, it seems that current momentum may be able to take the stock higher in next few weeks to help it post newer highs. Though it could not be confirmed, it was also being said that few big market participants are trying to accumulate the stock to exit when the the upward momentum gets stronger.
