F5 was careful not to update conditions post its last earnings call, but he sensed that demand was vital for Security and Systems.
Supply remains a significant constraint and has not improved materially, but it seems there was improvement at the margin.
F5 highlights solid redesign progress, which should start to help in the FY1Q/CY4Q quarter and ramp across FY23.
In addition, the software/feature work on the new rSeries systems continues to make solid progress and is gradually opening customer sales opportunities.
On Security and Software, F5 is pretty straightforward.
Demand remains strong, the pipeline is robust, and the macro conditions are not impacting the trajectory.
FFIV shares have corrected more than other networking names, and surprisingly, based on his estimates, FFIV trades at a discount to Extreme Networks, Inc (NASDAQ: EXTR) and Juniper Networks, Inc (NYSE: JNPR) on CY23 EV/E and Cisco Systems, Inc (NASDAQ: CSCO) on CY24.
Price Action: FFIV shares traded lower by 2.20% at $142.46 on the last check Friday.
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