F5 Networks Powers Ahead
Revenues continue to grow at F5, as CEO maps out product plans for 2012. For the quarter, F5 reported Net Revenue of $322.4 million which is a 19.9 percent year-over year gain. Net income was reported at $66.5 million which is a gain over the $55.7 million in the first quarter of fiscal 2011.
Networking vendor F5 is showing no signs of slowing down this year. F5 Networks (NASDAQ: FFIV) announced first quarter fiscal 2012 results on Wednesday that showed continued growth for the company.
For the quarter, F5 reported Net Revenue of $322.4 million which is a 19.9 percent year-over year gain. Net income was reported at $66.5 million which is a gain over the $55.7 million in the first quarter of fiscal 2011. F5 has been growing at a rapid rate in recent months. According to a report from Infonetics Research, F5 is now the No. 2 data center networking vendor ahead of HP but behind Cisco.
During the company's earnings call, CEO John McAdam cited sales of the VIPRION application delivery controller (ADC) platform as being a key driver of growth.
"Sales of the new mid-range VIPRION 2400 products were very strong in the quarter and sales from the entire VIPRION family almost tripled from a year ago," McAdam said. "The combination of VIPRION sales and the increase in our software module attach rate have been major factors in obtaining deal sizes at record levels."
McAdam also noted that F5's virtualization based portfolio of ADCs also grew during the year by 149 percent year-over-year.
"F5 has introduced the most comprehensive set of virtual product additions in the market and I believe this has enabled us to significantly expand our addressable market and offer new and exciting capabilities to our customer base," McAdam said.
Sitting at the core of F5's solutions is the TMOS operating system which was also refreshed during the quarter. McAdam noted that TMOS Version 11.1 was released in the quarter, including new features specifically designed for the security market. Moving forward, he said that the system will be adding new DNS caching capabilities that have been requested by telcos and service providers.
On the hardware side, McAdams said that there will be a new Senator Blade for the VIPRION 4400 platform. The Senator Blade is intended to double the performance of the current high-end VIPRION blades.
"We believe this new platform will be the highest performing ADC currently available," McAdam said. "An eight-slot version of this platform is expected later in the year and will double the performance of the Senator Blade platform."
The product roadmap also includes a refresh of all 1U and 2U, F5 appliances -- taking advantage of technology first developed on the VIPRION 2400.
"Finally, towards the end of the calendar year we expect to deliver significant new security capabilities with our Topaz project, including a network firewall, protocol protection and enhanced D-DOS and application security," McAdam said.