In the latest round of financial adjustments resulting from the market slowdown, F5 Networks, Inc., announced yesterday that revenue and earnings for its first quarter ending December 31, 2000, would be below market expectations.
The Seattle-based provider of Internet Traffic and Content Management, announced that revenue for the first quarter is now expected to be in the range of $24 million to $26 million. A loss before taxes of approximately $0.48 to $0.50 per share, exclusive of restructuring charges, is expected.
John McAdam, President and CEO, F5 Networks, attributes the revisions to a slowdown in purchasing of infrastructure related equipment resulting from a rapid softening of market conditions in North America.
As a result of the adjustments, McAdam says that the company will need to make layoffs as well as some facilities consolidation. The number of Seattleites who will receive pink slips remains unreleased.
“We believe this is a prudent thing to do given the slowdown in market condition, combined with the uncertainty of the timing as to when the market growth will pick up again,” says McAdam.
McAdam believes that after the restructuring process, which he expects to complete by next week, the company’s business model will be set up for success.