F5 Networks stock up after strong 1Q12, positive outlook

F5 Networks' (Nasdaq: FFIV) share price rose after hours as investors expectations were buoyed by the company's strong performance in the first quarter of fiscal 2012, as well as by F5's strong outlook for the current quarter. The stock close at $108.46, but after hours was up nearly 7 percent to $115.35.

The company continued its string of double-digit revenue growth in the quarter, reporting sales of $322.4 million, up 19.9 percent from $268.9 million in the first quarter of fiscal 2011. First quarter profits also were up some 19 percent  to $66.5 million, or 83 cents per share, from $55.7 million, or 68 cents per share a year ago.

Chief executive John McAdam said strong sales in APAC, Japan, and particularly North America offset the seasonal slowdown that typically characterizes the first quarter of a new fiscal year.

"We were also pleased that sales in the EMEA region exceeded our expectations," said McAdam, adding that strength in product sales was driven in part by growing demand for Viprion 2400 across all regions and vertical markets. McAdam said sales of all Viprion products nearly tripled compared to the first quarter of fiscal 2011.

F5 Networks also made hay from sales of its virtual clustered Multiprocessing module, which enables customers to run multiple virtual BIG-IPs on a single Viprion. McAdam said sales and demand for BIG-IP virtual editions "continued to outpace our expectations."

For the current quarter, F5 Networks has set a revenue goal of $332 million to $337 million with a GAAP earnings target of 84to 86 cents per diluted share, and a non-GAAP earnings target of $1.05 to $1.07 per diluted share.

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