(Reuters) - Network gear maker F5 Networks Inc (FFIV.O) posted stronger-than-expected quarterly results as demand rose for its new data traffic management products.
The company’s shares rose about 10 percent to $94.90 in extended trading.
F5 and peers such as Riverbed Technology Inc RVBD.O and Juniper Networks Inc (JNPR.N) were hit last year as telecom companies cut spending due to a faltering U.S. recovery and weakness in Europe.
Net income rose to $76.2 million, or 97 cents per share, in the fourth quarter, from $67.7 million, or 85 cents per share, a year earlier.
Excluding items, the company earned $1.26 per share.
Revenue rose 9 percent to $395.3 million.
Analysts on average had expected earnings of $1.19 per share on revenue of $384.7 million, according to Thomson Reuters
Juniper reported a better-than-expected second-quarter earnings on Tuesday as spending by telecom service providers recovers. <ID: nL4N0FT3WJ>
In the past year, F5 has upgraded some software modules and introduced new hardware that helps reduce load and manage traffic on data, voice and video networks.
The company forecast first-quarter adjusted profit of $1.17 to $1.20 per share on revenue of $390 million to $400 million.
Analysts on average expected earnings of $1.20 on revenue of $389.6 million, according to Thomson Reuters I/B/E/S.
F5’s shares have risen nearly 13 percent in the past three months.
Reporting by Neha Alawadhi in Bangalore; Editing by Maju Samuel and Don Sebastian