F5 Networks Inc., which creates network traffic management products, posted a fiscal third-quarter decline of 12.4 percent Wednesday as robust sales failed to overcome higher costs.
For the three months ended June 30, net income fell to $19.1 million, or 23 cents per share, from $21.8 million, or 26 cents per share, during the same period a year earlier.
Quarterly revenue climbed 25 percent to $165.6 million from $132.4 million in the year-ago period.
Analysts polled by Thomson Financial, on average, forecast profit of 22 cents per share on revenue of $161.4 million.
Excluding stock-based compensation costs, earnings slipped to $30.2 million, or 37 cents per share, from $30.3 million, or 36 cents per share. Per-share earnings rose because the company's weighted average shares outstanding declined nearly 4 percent year over year.
Operating expenses rose by a third to $100.2 million.
For the current quarter, the company expects revenue of $172 million to $174 million and earnings of 19 cents to 20 cents per share. That includes a $5.3 million charge related to a loss for facility exit and sublease. Excluding that item and compensation costs, earnings are pegged in a range of 38 cents to 39 cents per share.
Analysts expect a profit of 24 cents per share on revenue of $169.1 million, on average.
Shares of F5 Networks dropped $1.54, or nearly 5 percent, to $29.50 in after-hours trading Wednesday. They sank $1.37, or 4.2 percent, to close at $31.04 in the regular session.
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