Shares of F5 Networks fell more than seven percent in after hours trading today following a disappointing fiscal third quarter earnings report.
The Seattle company, which makes hardware and software to speed up the delivery of applications on the Internet, posted net income of $62.5 million on revenue of $290.7 million. That compared to net income of $40.5 million and revenue of $230.5 million for the same period last year.
Bloomberg News reports that average analyst revenue projection for the quarter was $290.8 million.
The company cited a slowdown in sales in the Americas, driven in part by a lack of spending by the federal government. It also noted weakness in Europe, the Middle East and Africa, something that Riverbed Technology also reported today.
In a statement, F5 CEO John McAdam cited the rollout of several new products which he said will help bolster the business going forward.
“…We continue to believe that our competitive position in the traditional ADC market has never been stronger, and that the opportunity to expand our footprint in adjacent markets has never been greater,” he said. “As a result, we remain confident in our ability to sustain top-line growth and profitability by continuing to expand our reach into new and existing markets and by hiring and retaining the best people.”
F5, which added 95 employees during the most recent quarter, finished the period with $299 million in cash and cash equivalents. It anticipates revenue of $307 million to $312 million for the current quarter.
Full earnings statement here.