F5 Networks lowers sales and earnings estimate, blames late-December fall-off
Tuesday January 6, 2009, 5:14 pm EST
SEATTLE (AP) -- Technology company F5 Networks Inc. said Tuesday that revenue in its latest quarter fell below the company's forecast due to a late slump in North American sales and that adjusted earnings per share would be reported a penny lower than earlier guidance.
The company, which makes products to manage and route computer network traffic, said sales in the quarter ended Dec. 31 would be posted at $165.6 million, below the forecast of $172 million to $174 million. Analysts expected $172 million, according to survey by Thomson Reuters.
Seattle-based F5 said earnings would be reported at 26 to 27 cents per share, matching the company's forecast in October.
But the company said it would post pro forma earnings, which typically exclude one-time items, of 40 to 41 cents per share instead of the earlier guidance of 41 to 42 cents per share.
Analysts, who usually exclude items from their calculations, had expected 41 cents per share.
The company's shares fell 29 cents to $22.50 in regular trading, then rose $1.50, or 6.7 percent, to $24 in extended trading after the announcement.
The December quarter was the first in F5's fiscal year.
Chief Executive John McAdam said the sales shortfall was due mostly to a drop-off in the last week of December when "a number of anticipated orders from certain customers in North America did not come through."
McAdam said sales managers were reviewing each of the cases to identify the causes of the slowdown, and that the company expects to offer more details later this month.
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