F5 Networks (FFIV) held its Analyst Day last Thursday, and I wanted to update you on what was discussed, particularly after my discussion of the stock just last week.
Over a series of presentations covering the company’s customer base, product introductions and financials, there was a clearly optimistic tone about current and future positioning in the core ADC market.
Management noted that they have been able to gain traction with larger scale deployments of their technology worth millions of dollars per contract. They spotlighted recent examples, including a $7.5 million win with a federal agency tied to data center consolidation, as well as a $4.6 million contract to replace competitor Cisco’s (CSCO) ACE at a major financial institution.
While these wins were in the past, they show the traction in application hardware and software spending that should help F5 meet or beat its near-term projections.
As expected, guidance for the current quarter was kept unchanged as the company had just issued projections a few weeks ago during its earnings call. First-quarter guidance remains at $390-$400 million in revenues, while earnings should be in the range of $1.17-$1.20 a share.
Management also still sees positive product growth and margin recovery toward the back half of the year.