F5 Networks reported gains in revenue and net income for its second quarter Wednesday, but fell short of expected targets, and investors were not happy.
Shares of the Seattle-based network infrastructure and security technology company plunged 7 percent in after-hours trading after the company reported its first financial results under new CEO Francois Locoh-Donou, who was named CEO earlier this year and assumed the role earlier this month.
“My early internal and external interactions have reinforced my enthusiasm for joining the F5 team and my view that the company offers a compelling platform for growth,” he said in a statement.
Revenue was $518.2 million, up 7 percent from the year-ago quarter, but financial analysts were expecting $522 million, according to Yahoo Finance. Likewise, net income was up on a non-GAAP basis to $127 million, or $1.95 a share, but that number was at the low end of the company’s own forecasts and well below analyst expectations.
The networking business — and F5 itself — has changed a lot over the years, and F5 is making a concerted push around security in hopes of finding a new source of growth. The company also said it plans to introduce several new products focusing on connecting public and private clouds in the next few months.