F5 Networks Q1 profit up, Q2 outlook solid; to cut jobs
Wed Jan 21, 2009 6:18pm EST
* Q1 EPS $0.24 vs $0.21 a year ago
* Q1 revenue $165.6 mln vs $154.2 mln
* Shares jump more than 7 pct
* To cut 5-7 pct jobs in Q2
Jan 21 (Reuters) - Network-equipment maker F5 Networks Inc (FFIV.O) reported first-quarter earnings that met market estimates, and its second-quarter outlook was largely above expectations, sending its shares up more than 7 percent.
F5 Networks would cut 5 percent to 7 percent of its workforce at the end of the second quarter as part of its restructuring plan, resulting in charges of $4.5 million to $5.5 million, a company executive said in a conference call with analysts.
For the quarter ended Dec. 31, the Seattle-based company, which has about 1,710 employees, posted net income of $21.4 million, compared with $17.8 million a year earlier.
Excluding items, the company reported earnings of 40 cents a share for the latest first quarter. Revenue rose 7.4 percent to $165.6 million.
Analysts on average were expecting earnings of 40 cents a share, excluding items, on revenue of $165 million, according to Reuters Estimates.
The maker of network gear to manage traffic on the Internet said revenue was hurt by a "sudden fall-off" in North American sales during the last week of December. Most of these deals were pushed into the second or third quarter of 2009 due to budget constraints, the company said.
"However, several were postponed indefinitely as customers evaluate their expense budgets in light of the continued recession," the company said.
For the second quarter, the company expects to earn 36 cents to 38 cents a share, before items, on revenue of $157 million to $164 million.
Shares of the company, whose rivals include networking giants like Cisco Systems (CSCO.O) and Juniper Networks (JNPR.O), were trading at $23.67 after the bell following the results. They closed up 2.28 percent at $22 Wednesday on Nasdaq.
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