F5 Networks, the Seattle-based application security and delivery company, posted revenue of $626 million for the December quarter, up 10%, and profits of $87.7 million, down 11%, as the company boosted spending on a variety of fronts in pursuit of future growth.
Also this week, the company completed its previously announced acquisition of cloud computing startup Volterra for $440 million in cash up front and $60 million in future consideration. Volterra is F5’s third major acquisition in the past two years, part of a broader effort by the company to move into its software and services, expanding beyond its traditional networking hardware business.
For the December quarter, F5 reported software revenue of $111 million, up 70% from the same period last year.
F5 beat Wall Street’s expectations for revenue and profits, with adjusted earnings per share of $2.59, compared with analysts’ expectations of $2.45 per share. However, its shares fell in after-hours trading on apparent disappointment over its profit outlook for the current quarter.
