F5 Shares Fly on Strong Results (Update 1)

This story has been updated with F5 Networks' share price and interview comments from CEO John McAdam.

NEW YORK (TheStreet) - F5 Networks (FFIV) shot past Wall Street's estimates in its fiscal first-quarter results, released after market close, delivering robust guidance, much to the delight of investors.

The networking specialist brought in revenue of $406.5 million, up from $365.5 million in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for sales of $396.38 million.

Excluding items, F5 earned $1.22 a share, up from $1.14 a share in the same period last year, and above analysts' forecast of $1.19 a share.

For the second-quarter, F5 expects sales between $408 million and $418 million and earnings, excluding items, of $1.23 to $1.26 a share. Analysts are looking for sales of $404.4 million and earnings of $1.21 a share.

The numbers pushed F5 shares up 9.77% to $107 in extended trading.

"During the first quarter, increasing demand for the new hardware and software products we introduced in fiscal 2013 continued to drive product revenue, which increased 3 percent from the prior quarter and 7 percent year over year," said F5 CEO John McAdam in a statement.

The Citrix Systems (CTXS) and Juniper (JNPR) rival added 165 employees during the first quarter. "We remain confident that the momentum we saw in the last two quarters will continue through the current quarter and into the back half of the year," said McAdam, in the company's statement.

Speaking during an interview with TheStreet, McAdam said that a number of factors drove the company's strong first-quarter results and its healthy outlook. These included F5's 2013 product refresh, replacements of Cisco's ACE technology and success in security and service providers, according to the CEO. "Service providers were twenty-four percent of our business in the quarter," he added, noting success in mobile and LTE deployments.

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