F5 Networks today announced its first quarter earnings of fiscal 2015, missing Wall Street’s expectations with $463 million in revenue as shares tumbled in after-hours trading.
The company did, however, exceed expectations with $89.1 million in profit and an EPS of $1.55. Revenue increased by 14 percent year-over-year, while net income spiked 23 percent from 2013.
Shares of F5 were down more than 15 percent to $106.97 in after-hours trading. CEO John McAdam, who will retire this September, noted a “slower than expected revenue growth” last quarter. Wall Street had predicted Q1 revenue of $467 million.
“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,” McAdam said in a statement. “While this resulted in slower than expected revenue growth for the quarter, the number of large deals in the current pipeline is encouraging and indicates that we should see a resumption of the recent trend toward larger deals in the second quarter.
F5 expects revenue of $465 million to $475 million and earnings of $1.48 to $1.51 a share next quarter.
F5 has a market cap of just over $9 billion. Check out the company’s financials from its fiscal first quarter below:
