Highlights of F5 Networks’ earnings
F5 Networks (FFIV) provides solutions for software applications in the form of scaling cloud, data center, and SDN (software defined networking) deployment to the organization. F5 Networks announced its 3Q15 earnings on July 23, 2015. The stock price rose by 8% on the day the results were announced. Since then, it has remained volatile. F5 Networks has shown solid growth during this quarter. It was primarily driven by continued growth in software sales. This leads to an expanding profit margin and abundant cash flows from the operation.
F5 Networks reported a rise in revenue of $483 million in 3Q15 from $440 million in the same quarter last year. This was a rise of 9.83%. The revenue earned from products has surpassed the revenue earned from services by $13 million. However, compared to the same quarter last year, the service has shown higher growth of 15.47% over the product, which stood at 5%. Income from its core operations remained at $140 million in 3Q15—compared to $126 million in the same quarter last year.
F5 Networks has managed to cut the provision for income tax by 0.25%—compared to the same quarter last year. This led to a rise in the income after tax. The net income rose 17.24% over the same quarter last year. It rose 23.40% over the nine-month period the previous year.
F5 Networks accounts for 3.98% of the First Trust ISE Cloud Computing Index Fund (SKYY). It’s partnered with Amazon’s (AMZN) AWS (Amazon web service) to provide service for their newly released software. This expands F5 Networks’ hybrid platform of services. It greatly improves the agility, security, and performance of cloud application deployment.
F5 Networks accounts for 0.22% of the Technology Select Sector SPDR Fund (XLK). It has appointed John DiLullo as the new head of worldwide sales. He has 25 years of experience in global business, sales, and market and channel development. Prior to joining F5 Networks, he ran the worldwide sales and service team at Aruba Networks through the acquisition by Hewlett-Packard (HPQ).