F5 Networks Inc. (FFIV:US) fell the most in more than two years after the maker of data-management equipment reported preliminary quarterly profit and revenue that missed its forecast (FFIV:US) as North American sales slowed.
The shares (FFIV:US) slid 19 percent to $73.21 at the close in New York, for the biggest one-day decrease since January 2011. They have dropped 25 percent this year, as the Standard & Poor’s 500 Index advanced 8.9 percent.
F5 Networks, which counts (FFIV:US) technology and telecommunications companies among its customers, said sales in the latter segment fell “significantly” during its second quarter that ended March 31. Customer hesitancy prevented the Seattle-based company from closing “certain forecasted deals,” Chief Executive Officer John McAdam said on an earnings call yesterday.
“The slowdown in orders was pronounced in North America and to a lesser extent EMEA while Asia-Pacific and Japan came in roughly as planned,” McAdam said.
Preliminary revenue (FFIV:US) was $350.2 million, compared with the company’s forecast of as much as $380 million, according to a statement yesterday. Analysts had estimated an average of $375.8 million, according to data compiled by Bloomberg.
Preliminary profit (FFIV:US) excluding expenses such as stock-based compensation was $1.06 to $1.07 a share, the company said. F5 Networks had forecast as much as $1.24, and the average of analysts’ estimates was $1.23.
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