Research Desk Line-up: New Relic Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on F5 Networks, Inc. (NASDAQ: FFIV), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=FFIV, following the Company's announcement of its fourth quarter and fiscal 2017 operating results on October 25, 2017. The computer networking Company's EPS surged 30.5%, and it exceeded top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Business Software & Services industry. Pro-TD has currently selected New Relic, Inc. (NYSE: NEWR) for due-diligence and potential coverage as the Company announced on November 07, 2017, its financial results for Q2 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on New Relic when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FFIV; also brushing on NEWR. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
F5 Networks announced revenue of $538.00 million for Q4 FY17, up 2.4% from revenue of $525.35 million in Q4 FY16, beating Wall Street's estimates of $536.8 million. The Company's reported quarter growth was driven by Services and software-based solutions. For the fiscal year 2017, F5 Networks recorded revenue of $2.1 billion, up 4.8% from $2.0 billion in FY16.
For Q4 FY17, F5 Networks' GAAP net income totaled $135.7 million, or $2.14 per diluted share, compared to $108.9 million, or $1.64 per diluted share, in Q4 FY16. Excluding the impact of stock-based compensation, amortization of purchased intangible assets, restructuring charges, litigation expense, and a non-recurring tax benefit, the Company's non-GAAP net income for the reported quarter was $154.9 million, or $2.44 per diluted share, compared to $139.9 million, or $2.11 per diluted share, in the year-ago same period, and ahead of analysts' expectations of $2.20 per share.
F5 Networks' GAAP net income was $420.8 million, or $6.50 per diluted share, in FY17 compared to $365.9 million, or $5.38 per diluted share, in FY16. The Company's non-GAAP net income was $542.9 million, or $8.38 per diluted share, for FY17 compared to $496.2 million, or $7.30 per diluted share, in FY16.
F5 Networks' Segment Results
During Q4 FY17, the Company's Product revenue totaled $248.99 million down 2% compared to revenue of $252.98 million in Q4 FY16, and accounted for 46% of total Company revenue for the reported quarter. The Company's Service revenue was $289.01 million, growing 6% y-o-y versus $272.37 million in the year-ago corresponding period and represented 54% of total revenue.
On a regional basis, the Americas revenue grew 1% on a y-o-y basis and represented 58% of total revenue. The Company's Europe, Middle-East, and Africa (EMEA) region revenue grew 7% on a y-o-y basis and accounted for 24% of overall revenue. F5 Networks' revenue from Asia/Pacific (APAC), which accounted for 14% of the total increased 1% on a y-o-y basis, while Japan, at 4% of total revenue, was also up 1% from a year ago.
During Q4 FY17, sales to enterprise customers represented 64% of total sales, while Service providers accounted for 19% and government sales were 16%, including 7% from US federal.
Cash Matters
During Q4 FY17, F5 Networks generated a record $213 million in cash flow from operations, which contributed to cash and investments in totaling $1.3 billion at year-end. For FY17, the Company's cash flow from operations totaled a record $740 million and capital expenditures were $39 million.
F5 Networks' Days Sales Outstanding (DSO) at the end of Q4 FY17. The Company's Inventory at the end of the reported quarter was $30 million. F5 Networks' deferred revenue jumped 11% to $964 million on a y-o-y basis.
F5 Networks ended Q4 FY17 with approximately 4,365 employees, down 150 from the prior quarter.
Share Repurchase Program
During Q4 FY17, F5 Networks repurchased approximately 1.26 million shares of its common stock at an average price of $119.06 per share for a total of $150 million. The Company announced that its Board of Directors had authorized an additional $1 billion for the Company's common stock share repurchase program. The new authorization was incremental to the $173.7 million currently unused in the existing program which was initially authorized in October 2010.
Outlook
For Q1 FY18, ending December 31, 2017, F5 Networks has set a revenue goal of $515 million to $525 million with GAAP earnings expected in the range of $1.47 to $1.50 per diluted share and non-GAAP earnings is targeted to be between $2.02 to $2.05 per diluted share.
Stock Performance
On Thursday, November 16, 2017, the stock closed the trading session at $122.06, climbing 1.89% from its previous closing price of $119.79. A total volume of 598.95 thousand shares have exchanged hands. F5 Networks' stock price advanced 4.56% in the last one month and 4.79% in the past three months. The stock is trading at a PE ratio of 18.74 and currently has a market cap of $7.84 billion.
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