F5 drags down cloud networking market after missing forecasts

Cloud networkingvendor F5 Networks took a battering on the stock market after its fiscalQ1sales came in below expectations, and a weak forecast for Q2 did not help matters. The slump in the firm's stock price has also hit rivals such as Aruba and Riverbed, according to reports. Seattle-based F5 made

Cloud networking vendor F5 Networks took a battering on the stock market after its fiscal Q1 sales came in below expectations, and a weak forecast for Q2 did not help matters.

The slump in the firm's stock price has also hit rivals such as Aruba and Riverbed, according to reports.

Seattle-based F5 made sales of $268.9m (£168.1m) - analysts had called for $270m - up 5.8% sequentially and 40.7% year-on-year.

The company has now forecast Q2 sales of between $275m and $280m, again below analyst forecasts.

Profits, however, showed improvement, with GAAP net income up to $55.7m, a 90% increase on the year-ago-quarter.

Speaking on a conference call, CEO John McAdam said the company's pipeline appeared to be stablising.

He added that while F5 remained cautious after customer spending dried up in 2009, key market drivers were all looking healthy.

Continued worldwide sales vice president Mark Anderson: "We're seeing people buy bigger configurations, we're seeing people buy more boxes, more data centre consolidation."

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