F5 Shares Up Despite Lowered Estimates

The tech firm said first-quarter EPS would miss previous guidance by a penny, blaming weakened North American sales for a drop in revenue.
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Tech firm F5 Networks (FFIV) - Get Report lowered guidance by a penny Tuesday, blaming weakened North American sales for a drop in revenue.

F5 said that revenue for its first quarter, which ended Dec. 31, 2008, is expected to be $165.6 million, below the company's guidance of $172 million to $174 million. The Seattle-based company said it would report earnings at between 26 and 27 cents per share, consistent with original guidance. However, pro forma EPS is expected to be in the range of 40 cents to 41 cents, as compared with original guidance of 41 cents to 42 cents.

John McAdam, F5 president and CEO, said the revenue shortfall resulted primarily from a drop in North American sales at the end of December.

Although overall product sales missed the company's internal forecast, F5 said, sales of new entry-level products remained strong, and demand for its high-end BIG-IP 6900, launched in late October, was in line with expectations.

Shares of F5 were up $1.85, or 8.2%, to $24.35 in after-hours trading Tuesday.

This article was written by a staff member of TheStreet.com.