October 23, 2013 / 8:19 PM / 4 years ago

F5 Networks results beat estimates as new products drive growth

(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

I/B/E/S.

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.

Apart from telecom companies, F5 counts Facebook Inc (FB.O), Pandora Media Ltd (P.N), MakeMyTrip Ltd (MMYT.O) and the U.S government among its customers.

Reporting by Neha Alawadhi in Bangalore; Editing by Maju Samuel and Don Sebastian

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