F5 Networks this afternoon reported revenue of $489.5 million, an increase of 6 percent over the same quarter last year, in the security technology and network infrastructure company’s first financial results since the sudden departure of Manny Rivelo as CEO.
Rivelo resigned abruptly from the Seattle-based company in December, after less than five months in the position, due to what F5 described at the time as “personal conduct matters” unrelated to the company’s business. The specific reasons for Rivelo’s departure have yet to emerge. He has been replaced by former F5 CEO John McAdam while the company searches for a permanent replacement.
The company’s profits were $89.7 million, or $1.28 per share, in the quarter ended Dec. 31.
“We continue to see growth in software sales, driven by strength in security modules and sales of our virtual editions,” McAdam said in a statement. “Security remains a key driver of growth for the business, with million dollar plus security deals up year over year. In addition, our operating model continues to drive solid profitability and cash generation, with cash flow from operations at a record $204 million for the quarter.”
F5 had been expected to report revenue of $486 million for the quarter, according to analysts polled in advance by Thomson Reuters. The company reported revenue of $462.8 million in the same quarter last year, with profits of $89.1 million, or $1.21 per share.
Earlier this month. F5 disclosed the text of its separation agreement with Rivelo, including a clause that prevents the former chief executive from working for a variety of F5 competitors for a year following his departure.
Developing story, more to come.