The profit warnings for enterprise technology companies are starting to pile up.
On Thursday, F5 Networks said its results will fall short of expectations and guidance. Specifically, F5 projected second quarter revenue of $350.2 million, which was below guidance of $370 million to $380 million. Non-GAAP earnings will be $1.06 a share to $1.07 a share with GAAP earnings of 79 cents to 80 cents a share.
Wall Street was looking for second quarter non-GAAP earnings of $1.23 a share on revenue of $375.8 million.
In a statement, F5 CEO John McAdam said that a slowdown in North America hurt sales. Europe Middle East and Africa sales also slowed a bit. Japan and Asia Pacific sales looked ok.
Some enterprise tech companies have noted that the federal government's budget showdowns hurt spending. On cue, F5 said that telecom and government bookings were down.
On Wednesday, Compuware said that its results would miss expectations. The company said that its fiscal fourth quarter non-GAAP earnings would be between 5 cents and 6 cents a share on revenue of $237 million and $241 million.
In a statement, Compuware CEO Bob Paul said that deals slipped into the next quarter because "many clients and prospects were unable to formalize their IT budgets during the period."
These quarterly hiccups come as enterprise software companies have been missing estimates. For instance,both delivered weak quarters. Both companies blamed sales execution and expect a rebound.
With earnings season on deck, it'll be interesting to watch the outlooks and color on the most recent quarter. Looks like there was definitely a drop off.