Reuters: Global Markets: F5 says weak federal, telecom spending hurts 2nd quarter

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F5 says weak federal, telecom spending hurts 2nd quarter Apr 4th 2013, 22:56 Thu Apr 4, 2013 4:53pm EDT (Reuters) - Network gear maker F5 Networks Inc (FFIV.O) estimated second-quarter results way below analysts' expectations on significantly lower U.S. federal sales and weakness in North America. F5 Networks shares were down 16 percent in extended trading. They closed at $90.42 on the Nasdaq on Thursday. The company and its rivals such as Juniper Networks Inc (JNPR.N) and Riverbed Technology Inc (RVBD.O) have been seeing delays or order cancellations as telecom service providers -- their biggest customers -- cut spending due to a slow U.S. recovery and weakness in Europe. F5 Networks estimated adjusted earnings of $1.06 to $1.07 per share on revenue of $350.2 million. Analysts were expecting adjusted earnings of $1.23 per share on revenue of $375.8 million for the quarter ended March 31, according to Thomson Reuters I/B/E/S. "From a market perspective, telco bookings were down sharply on both a sequential and year-over-year basis," Chief Executive John McAdam said. Telecom accounted for about 23 percent of total sales of $365.5 million in the first quarter for F5 Networks. The company also supplies data traffic management equipment to major U.S. service providers such as AT&T (T.N) and Verizon (VZ.N).

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