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F5 Networks Makes Good on Profit Warning, but Beats Estimate by a Penny

F5 Networks

(FFIV) - Get F5 Networks, Inc. Report

posted a loss of 47 cents a share for the first fiscal quarter of 2001, beating Wall Street's dramatically lowered estimates by a penny.

The company, which makes Internet-traffic management products, had a loss of $10.3 million for the first fiscal quarter, excluding tax benefits and a restructuring charge. In the year-ago period, F5 reported earnings of $4.2 million, or 18 cents a share.

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Three analysts polled by

First Call/Thomson Financial

arrived at a consensus estimate for a loss of 48 cents a share. The latest forecast was in line with a

profit warning F5 issued in December. At the time, analysts were calling for the company to earn 17 cents a share.

Revenue for the latest quarter rose to $24.7 million from $19.2 million in the year-ago quarter. The Seattle-based company also said it cut 17% of its jobs in January. "In the December quarter, the sudden economic downturn and the resulting drop-off in revenue forced us to re-examine our entire business model and address issues that had arisen. Our just-completed restructuring -- both the reduction in headcount and the subsequent realignment of groups and priorities within the remaining organization -- resolved many of those issues," the company said in a news release.

F5 expects to reduce operating expenses by $7 million to $8 million during the remainder of the fiscal year. The company's goal is to break even in the third fiscal quarter and be profitable by the fourth. In the second quarter, F5 said its goal is to report revenue of $26 million to $28 million and a loss before any taxes and charges of 22 cents a share. Analysts expect a loss of 16 cents a share, according to First Call.