(Adds details, forecast, estimates)
April 23 Network equipment maker F5 Networks Inc
posted a higher-than-expected quarterly revenue and
forecast third-quarter results largely above analysts'
estimates, helped by increased demand from its telecom
Shares of the company, whose customers include AT&T Inc
and Verizon Communications Inc, rose about 3
percent in extended trading.
F5's quarterly revenue rose 20 percent, partly as its U.S.
telecom clients beef up their networks to allow faster transfer
of data-heavy files on smartphones and tablets.
In the past year, F5 has launched upgrades to its software
and introduced hardware that help manage traffic on networks.
These products have found favor with customers.
AT&T has estimated capital expenditure of about $21 billion
for this year, while Verizon has said it expected to spend about
$17 billion. (r.reuters.com/nag78v)
F5, whose rivals include Cisco Systems Inc and
smaller peer Riverbed Technology Inc, forecast adjusted
earnings of $1.33-$1.36 per share and revenue of $428
million-$438 million for the third quarter ending June 30.
Analysts on average were expecting a profit of $1.33 per
share on revenue of $428.7 million, according to Thomson Reuters
F5's net income rose to $69.6 million, or 91 cents per
share, in the second quarter ended March 31 from $63.4 million,
or 80 cents per share, a year earlier.
Revenue rose to $420 million from $350.2 million a year
Excluding items, F5 earned $1.27 per share.
Analysts on average had expected a profit of $1.25 per share
on revenue of $414.4 million.
F5's rival Juniper Networks Inc also reported a
higher-than-expected 10 percent rise in quarterly revenue on
Tuesday as its U.S. telecom clients spent more to ramp up their
F5's shares closed at $108.19 on the Nasdaq on Wednesday.
(Reporting by Lehar Maan in Bangalore; Editing by Kirti Pandey)