F5 Networks Announces Second Quarter Fiscal 2017 Results
(FFIV) today announced revenue of $518.2 million for the second quarter of fiscal 2017, up 7.1% from $483.7 million in the second quarter of fiscal 2016. Growth compared with the second" width="300" height="200" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/F5-Headquarters-1240x827-Small.jpg?resize=300%2C200 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/F5-Headquarters-1240x827-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />
BUZ INVESTORS PRESS RELEASE F5 Networks, Inc. (FFIV) today announced revenue of $518.2 million for the second quarter of fiscal 2017, up 7.1% from $483.7 million in the second quarter of fiscal 2016. Growth compared with the second quarter of fiscal 2016 was driven by solid execution in the Americasand strong sales of security solutions. Partially offsetting these positive trends was continued soft demand in Europe.
GAAP net income for the second quarter of fiscal 2017 was $93.1 million, or $1.43 per diluted share, compared to $75.4 million, or $1.11 per diluted share in the second quarter of 2016. Non-GAAP net income for the second quarter of fiscal 2017 was $127.0 million, or $1.95 per diluted share, compared to $114.0 million, or $1.68 per diluted share in the second quarter of fiscal 2016.
A reconciliation of net income, earnings per share, and other measures on a GAAP to non-GAAP basis is included on the attached Consolidated Income Statements.
In the just completed quarter, several new products were introduced including 40-Gigabit BIG-IP virtual editions, Herculon SSL Orchestrator and Herculon DDoS Hybrid Defender purpose-built security products, as well as the latest version of our BIG-IP operating system, TMOS 13.0. BIG-IP iSeries products continue to be well received by customers with adoption trends tracking in line with past major product refresh cycles. The BIG-IP iSeries appliance family was architected to offer massive performance and scalability across the entire line, and these programmable, software-defined hardware platforms include features designed to simplify private cloud deployments and hybrid cloud build-outs.
Several new products scheduled to begin shipping in the current quarter are designed to help enable customers to deploy their applications across a variety of cloud environments. These solutions include Application Connector 1.0 for connecting public and private cloud application infrastructures, support for BIG-IP in the Google Public Cloud, and Container Connector and Application Services Proxy for microservices environments.
“My early internal and external interactions have reinforced my enthusiasm for joining the F5 team and my view that the company offers a compelling platform for growth,” said François Locoh-Donou, F5 President and Chief Executive Officer. “I am excited by the new products and services we continue to bring to market and I look forward to actively engaging with our customers and key strategic partners around these offerings.
“With a strong culture of technology innovation and a solid financial foundation, F5 is uniquely positioned to address our customers’ evolving demands around securing and optimizing performance of their mission-critical business applications.”
For the third quarter of fiscal 2017, ending June 30, the company has set a revenue goal of $520 million to $530 million with a GAAP earnings target of $1.47 to $1.50 per diluted share and a non-GAAP earnings target of $2.01 to $2.04 per diluted share.
A reconciliation of the company’s expected GAAP and non-GAAP earnings is provided in the following table:
|Three months ended|
|June 30, 2017|
|Reconciliation of Expected Non-GAAP Third Quarter Earnings||Low||High|
|Stock-based compensation expense||$||44.0||$||44.0|
|Amortization of purchased intangible assets||$||2.8||$||2.8|
|Tax effects related to above items||$||(12.1||)||$||(12.1||)|
|Non-GAAP net income excluding stock-based compensation expense and amortization of purchased intangible assets||$||129.5||$||131.5|
|Net income per share – diluted||$||1.47||$||1.50|
|Non-GAAP net income per share – diluted||$||2.01||$||2.04|