Another Sign of Recovery in the IT Market?

Showing early signs of a recovery in IT spending, F5 Networks, Inc announced today that its revenues in the three months ended December 31, 2009 totaled $191.2 million, up an impressive 15.5 percent from the year before. Net income totaled $29.3 million, up from $21.4 million the year before. The company said it added 100 employees during the final three months of last year and, in spite of an aggressive program to buy back its own stock, ended the year with $647 million in cash and investments..

“For the second quarter in a row, strong product sales continued to drive our top-line growth,” said John McAdam, F5 president and chief executive officer. With the exception of Japan, results were strong across all regions and especially in North America, where overall revenue was up 12 percent from the prior quarter and 24 percent compared to the year before.

“Because our products are strategic points of control in data centers, the initial purchase and renewal of service maintenance contracts continues to be a strong component of our business, driving deferred revenue up 15.5 percent during the quarter to $211.4 million,” McAdam said.

“While seasonal factors typically make the (first three months of the year) our most challenging quarter, customer buying patterns continue to stabilize and our near-term business outlook remains strong,” McAdam said.