F5 Networks Inc. said Wednesday that its first-quarter net income edged, despite slower sales to the U.S. government. A bright outlook helped lift its shares 5 percent in extended trading.
The company, which sells information technology and networking equipment and services, said net income for the three months ended Dec. 31 rose 3 percent to $69.5 million, or 88 cents per share. That's up from $67.7 million, or 85 cents per share, in the same quarter of 2011.
Excluding one-time charges, such as a stock-based compensation expense and the amortization of purchased assets, net income was $1.14 per share. Analysts expected net income to come in at $1.15 per share, according to FactSet.
Revenue edged up 1 percent to $365.5 million, from $362.6 million in the same quarter of 2011. Analysts expected revenue of $366.7 million.
"Strong sales to North American enterprises and service providers were offset by a substantial slowdown in U.S. federal sales," said CEO John McAdam. He added that sales were weak in Japan, but Europe and the rest of the Asia Pacific region were stronger.
McAdam said new products introduced over the next two quarters, such as a firewall manager and other security tools, will help its results in the coming months.
For the quarter ending March 31, F5 expects net income, excluding one-time items, of $1.21 to $1.24 per share on revenue of $370 million to $380 million per share. Analysts expect net income of $1.20 per share on revenue of $379.5 million.
Shares rose $4.94, or 5 percent, to $103.75, after closing up $2.12 at $98.81.