F5 Networks Revenue and Income Rose in 4Q15 and Fiscal 2015



F5 Networks’ price movement

F5 Networks (FFIV) has a market cap of $8.6 billion. Its YTD (year-to-date) price movement has been a mixture of ups and downs in 2015. After the 4Q15 earnings report, FFIV rose 0.87% to close at $121.34 per share on October 28, 2015. Revenue and income rose 7.7% and 3.2%, respectively. The price movements on weekly, monthly, and YTD bases are 3.7%, 5.5%, and -7.0%, respectively.

Technically, F5 Networks has broken the support of 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading at 2.0% above the 20-day moving average, 1.7% above the 50-day moving average, and 0.61% above the 200-day moving average.

The iShares North American Technology-Multimedia Networking ETF (IGN) invests 4.3% of its holdings in F5 Networks. The ETF tracks a market-cap–weighted index of US and Canadian multimedia networking companies. IGN’s YTD price movement is 2.7% as of October 27, 2015.

Below are the market caps of F5 Networks’ competitors:

  • Hewlett-Packard (HPQ) — $50.3 billion
  • Citrix Systems (CTXS) — $13.5 billion
  • Juniper Networks (JNPR) — $12.2 billion
  • Fortinet (FTNT) — $6.0 billion
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Performance of F5 Networks in 4Q15 and fiscal 2015

F5 Networks reported net revenue of $501.3 million in 4Q15, an increase of 7.7% compared to $465.3 million in 4Q14. Revenue from products and services increased 0.88% and 16.1%, respectively, in 4Q15 compared to 4Q14.

The cost of sales as a percentage of sales decreased 5.9% in 4Q15 compared to 4Q14. Gross profit margin increased to 83.1% in 4Q15 compared to 82.4% in 4Q14. Net income and EPS (earnings per share) increased to $97.0 million and $1.36, respectively, in 4Q15, an increase of 3.2% and 7.9%, respectively, compared to 4Q14.

Genie Networks joined the F5 Networks Technology Alliance Program (or TAP) to deliver efficient network management solutions.

In fiscal 2015, F5 Networks’ net revenue increased to $1,919.8 million, an increase of 10.8% on a yearly basis. Gross profit and EPS increased to $1,587.6 million and $5.03, respectively, in fiscal 2015, an increase of 11.6% and 23.0%, respectively, compared to $1,422.1 million and $4.09, respectively, in fiscal 2014. Net profit margin increased 5.8% in fiscal 2015.

Cash and cash equivalents and short-term investments increased 38.7% and 5.5%, respectively, in fiscal 2015. The current ratio and debt-to-equity ratio increased to 1.57 and 0.75, respectively, in fiscal 2015 compared to 1.56 and 0.59, respectively, in fiscal 2014.

About F5 Networks

F5 Networks offers organizations scale cloud, data center, and software-defined networking deployments to successfully deliver applications.


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