What a difference a year makes.
Twelve months ago, shares of F5 Networks
F5's non-GAAP earnings landed at $1.03 per share, 22% above the year-ago period and 2% ahead of analyst targets. That's nothing new; the string of earnings beats actually goes back to and even beyond that dreary drop four quarters ago. In fact, you have to go back to fall 2008 to find the last time F5 merely met Street estimates rather than exceeding them.
Instead, the big story is the revenue surprise. Seasonal slowdowns didn't play out the typical way, mainly thanks to strong demand for a couple of recently introduced application-delivery products. The selling spiel for the VIPRION product range is that the system can grow as your business grows by plugging more networking modules and upgraded software into the central chassis. This flexible approach is clearly resonating with F5 customers.
The company's efficient networking focus isn't altogether unique. Citrix Systems
In short, F5 remains a top-notch networking play on cloud computing, and you just can't get much hotter than that nowadays. This stock enjoyed a gangbusters 2010, but 2011 was pretty flat. Will 2012 be a return to grand old form? The company and stock are off to a fine start, but you need to add F5 to your Foolish watchlist to track the situation as the year goes on. And don't forget to brush up on the fantastic cloud computing opportunity while you wait for more news.
Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Cisco. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.