Shares of F5 Networks soar 5% as deal with cloud software program and companies continues to gasoline development

The F5 Tower in downtown Seattle. (GeekWire Photograph / Kurt Schlosser)

Seattle-based F5 Networks noticed shares rise greater than 5% in after-hours buying and selling Monday after its fiscal fourth quarter earnings report beat expectations.

The corporate posted income of $615 million, up 4%, and non-GAAP earnings per share of $2.59. Wall Road anticipated income of $606 million and EPS of $2.37.

F5 Networks continues to profit from its transfer into software program and companies, increasing past its conventional networking hardware enterprise. Software program income was up 36% from the year-ago quarter.

“Going forward, we expect continued robust software growth from a more diversified base of subscription and SaaS revenue, a software subscription renewals flywheel that is starting to turn with momentum, and true-forward revenue opportunities on a significant percentage of our long-term software subscription contracts,” François Locoh-Donou, president and CEO of F5, stated in a press release.

Earlier this 12 months Locoh-Donou laid out the company’s strategy to allow “adaptive applications” that may adapt primarily based on the surroundings. F5 plans to leverage its conventional utility supply applied sciences together with its $1 billion acquisition of Shape Security and $670 million acquisition of web server NGINX to place itself as a key participant amid a bigger development of automation and synthetic intelligence driving advances in software program purposes and laptop networks.

F5 expects to report income between $595-to-$615 million within the present quarter, with non-GAAP EPS between $2.26 and $2.38. Each are above Wall Road’s estimates.

Shares of F5 spiked after March, rising to round $155/share in July, earlier than dropping barely over the previous couple of months.

Locoh-Donou told employees that F5 won’t make layoffs during its fiscal year 2020, which led to September.

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