F5 Networks released its second quarter earnings for 2016 today. The Seattle-based company announced a 2 percent increase in revenue year over year, up to $483.7 million. The board of directors also authorized $1 billion for the company’s share repurchase program.
Net income dropped from $85.7 million to $75.4 million, in part because of legal expenses and a patent verdict against the company. However, the maker of software and hardware that monitors and manages Internet traffic beat analyst expectations. The $1 billion buyback is in addition to $73.8 million from a buyback program authorized in 2010.
“Given the backdrop of a continued difficult macro and spending environment, I was pleased with our execution, as we delivered revenue within our guided range while maintaining solid profitability.” said F5 CEO and president John McAdam.
The company expects revenues to reach up to $500 million next quarter. Stock jumped 1.5 percent in after-hours trading on the earnings release but subsequently leveled off.
McAdam is serving as CEO of F5 for the second time, returning to the company late last year after previous CEO Manny Rivelo resigned just five months into the job over “personal conduct matters.”
The company has also been dealing with a legal battle over a patent. Last month, a jury in Northern California ruled that F5 infringed on patents held by Radware. Radware was awarded $6.4 million in damages, but F5 could appeal the ruling.
