F5 Networks warns of wider loss
Shares make back some of Thursday's retreat
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 4:07 PM ET April 5, 2002
SEATTLE (CBS.MW) -- F5 Networks warned investors Friday that its fiscal second-quarter loss will be wider than management previously expected.
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The Internet and content management products company (FFIV: news, chart, profile) anticipates now a loss of between 6 cents to 8 cents a share for the three months ended March 31, compared with its previous targeted range of 4 to 6 cents. Analysts polled by Thomson Financial/First Call had been expecting a loss of 5 cents.
In addition, the company said second-quarter revenue would end up at $27.1 million, below its previous target of between $27.5 million and $29 million.
While coming off earlier highs, shares of F5 Networks rose more than 6 percent to $18.30 in recent dealings. The stock got hit hard Thursday after a cautious research note issued by J.P. Morgan.
According to the company, the quarterly shortfall reflects weakness seen in enterprise spending during March, resulting in lower-than-expected revenue from North America and from its partnership with Nokia Internet Communications. F5 Networks is an original equipment manufacturer for the Nokia (NOK: news, chart, profile) subsidiary.
The company's second-quarter report is due out after the close of market on April 24.
Shares closed down 31 cents to $16.84.
Barbara C. Costanza is earnings editor of CBS.MarketWatch.com, based in Los Angeles.
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[Harry: On the surface, the miss does not look that bad. The revenue miss was minor, but the EPS miss is greater than 16 percent. Low float stocks with 1/2 the float short though.] |
