F5 shares tumble as it warns on earnings
NEW YORK -- F5 Networks Inc. said Thursday that its second-quarter net income and revenue will fall short of its expectations, primarily because of disappointing results from its North American business.
The Seattle company's stock tumbled $13.77, or 15.2 percent, to $76.65 in after-hours trading.
F5, which sells information technology and networking equipment and services, said telecommunications contract bookings dropped compared to the previous quarter and to the year-ago period. Revenue from business with the federal government also fell.
The company now expects to report adjusted net income of $1.06 or $1.07 per share per share for the quarter ended March 31. It said revenue will total about $350.2 million. The company previously forecast adjusted net income of $1.21 to $1.24 per share and $370 million to $380 million in revenue.
Analysts expected income of $1.23 per share and $376.1 million in revenue, according to FactSet.
In addition to disappointing results from its North American business, F5 said sales in the Europe-Middle East-Africa region also slowed somewhat. Revenue from Japan and the Asia-Pacific region were about equal to F5's expectations. F5 said it will provide more details when it reports quarterly earnings on April 24.
In the second quarter of fiscal 2012 the company reported adjusted income of $1.09 per share on $339.6 million in revenue.
F5 shares fell 10 cents to $90.42 during the regular session on Thursday.