F5 Networks today announced revenue of $525.3 million for its fourth quarter, up 6 percent from last quarter, and 5 percent up from $501.3 million in the same quarter in 2015. This is slightly above its expected range between $515 million and $525 million.
“Strengthening product sales in the second half of fiscal 2016 culminated in strong fourth-quarter results and record annual revenue and earnings,” F5 President and CEO John McAdam said in during the earnings call.
The company attributed its success to sales in North America, its Shuttle series product line, and its growth in the security space. However, McAdam noted that its sales in Europe, specifically the U.K., were poor because of macroeconomic issues including Brexit.
Net income for the fourth quarter was $108.9 million, or $1.64 per diluted share, compared to $97 million, or $1.36 per diluted share in the fourth quarter a year ago.
Non-GAAP net income was $2.11 per diluted share, beating the analyst consensus of $1.94, according to Thomson Financial.
F5 sees big opportunities for SSL traffic and security products in the cloud as distributed denial-of-service (DDoS) attacks become more of a concern. Its partnerships with Amazon Web Services (AWS) and Microsoft Azure will also help position the company as it virtualizes more of its application delivery controller (ADC) product line as well, McAdam said.
F5 also announced that Ryan Kearney has been appointed as CTO. Kearney had been named interim CTO in September, when Karl Triebes announced his retirement.
Kearney will oversee the company’s product development and innovation strategies. He joined the company in 1998 serving as senior vice president of product development, among other technology leadership positions.
The company is still seeking a CEO to replace McAdam, who is on his second stint as CEO and announced in July that he plans to retire.