F5 Networks revenue misses estimates as big deals slow down

Reuters News
Posted: Jan 21, 2015 4:20 PM

(Reuters) - Network equipment maker F5 Networks Inc <FFIV.O> reported revenue that missed Wall Street's estimates for the first time in eight quarters due to fall in the number of large deals.

The company's shares fell 12.5 percent to $110.34 in extended trading.

Revenue rose 13.8 percent to $462.8 million in the first quarter ended Dec. 31, but fell short of analysts average estimates of $467.2 million, according to Thomson Reuters I/B/E/S.

"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," Chief Executive John McAdam said in a statement.

The company's net income rose to $89.1 million, or $1.21 per share, from $68.0 million, or 87 cents per share, a year earlier.

(Reporting By Arathy S Nair in Bengaluru; Editing by Savio D'Souza)