F5 Networks, the Seattle-based network infrastructure and security technology company, reported revenue of $496.5 million for the third quarter of its fiscal 2016 ended June 30 —up 3 percent from the year-ago period.
Net income was $91.8 million, or $1.37 per diluted share, compared with $93.2 million, or $1.29 per diluted share, in last fiscal year’s third quarter.
The results beat its own goals for the quarter: revenue of $490-$500 million and net income of $1.29-$1.32 per diluted share.
“F5 delivered solid revenue growth and strong earnings despite a relatively challenging spending environment,” said John McAdam, F5’s president and CEO, in a statement. The Americas and Asia Pacific showed strong growth, while EMEA revenue suffered against the backdrop of Brexit, he said. Software sales made up an increasing percentage of overall product revenue, and an increasing presence in public and private clouds helped contribute to growth, he said.
F5 provides hardware and software that helps organizations scale their applications, whether they reside in the cloud, in a company data center or on-premises.
During the quarter, the company introduced version 5.0 of its BIG-IQ management platform and a new standalone appliance for DDoS mitigation. Products scheduled to begin shipping in the current quarter include a refresh of the BIG-IP appliance family and a standalone SSL appliance designed to encrypt and unencrypt traffic in concert with third-party security solutions.
Update: F5 has set up a search committee to find a replacement for McAdam, he said in a conference call after earnings were released. The search may take six months or more, he said. After retiring once from the CEO position, McAdam returned in December upon the sudden and unexpected departure of his successor, Manny Rivelo.
F5 has hired Ben Gibson as its chief marketing officer, reporting to McAdam. Gibson will start Aug. 1 and will be based in the company’s San Jose office. He most recently served as CMO at Veritas and also held that role at Aruba Networks.
F5 had about 4,325 employees at the quarter’s end, up 5 percent year over year, Reinland said. Between 75 and 100 will be added during the current quarter, he estimated.