CTXS Citrix Systems Inc

F5 Networks Inc. (FFIV) recently revolutionized the world of management solutions with the introduction of the F5 Enterprise Manager Version 2.2. Management revealed that the product launch reflects the company’s effort to adapt its solutions to changing market requirements, while keeping an integrated and repeatable architecture in place for optimal efficiency.

F5 Networks’ Enterprise Manager helps customers in managing multiple BIG-IP Application Delivery Controller (ADC) devices. It also improves the visibility of network traffic and device performance, significantly reducing complexities and costs for customers.

The Version 2.2 adds virtual capabilities to the exiting offering, giving customers flexibility in virtual or physical deployment of the application. The solution will help meet particular business needs without sacrificing performance, reliability or scalability.

F5 Networks' flagship product, the BIG-IP network appliance provides integrated application delivery services. The BIG-IP solutions have grown in popularity because they enable physical and virtual infrastructures to keep pace with rapidly growing application delivery demands.

We believe that the latest release will augment the demand for F5 Networks’ BIG-IP products, thereby securing streams of revenue in the quarters to come.

F5 Networks delivered decent first quarter results, beating the Zacks Consensus Estimate on the bottom line. However, the shares plunged 22.1% in after-hours trading on disappointing second quarter guidance, which was much lower than the Street’s expectation.

However, we find that better execution and focus on enterprise and service providers have placed F5 Networks well in the application delivery controller market and helped it capture share from Cisco Systems Inc. (CSCO).

F5 Networks is also keen on expanding its cloud exposure. The company’s total available market has already touched $4.0 billion in 2010 and it is expected to reach $9.0 billion by 2014. However, it faces stiff competition from Juniper Networks Inc. (JNPR) and Citrix Systems Inc. (CTXS).

Currently, F5 Networks has a Zacks #3 Rank, implying a short-term Hold recommendation.

 
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
 
CITRIX SYS INC (CTXS): Free Stock Analysis Report
 
F5 NETWORKS INC (FFIV): Free Stock Analysis Report
 
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
 
Zacks Investment Research