F5 warns breach that alarmed governments will weigh on sales, shares slide 10%

Core Viewpoint - F5 forecasts annual revenue below Wall Street estimates due to a recent systems breach that raises concerns over demand for its services [1][3] Group 1: Financial Forecast - F5 anticipates full-year revenue growth of 0% to 4%, which is below the average analyst estimate of 4.8% [4] - The first-quarter revenue forecast is between $730 million to $780 million, also below the estimates of $791 million [4] Group 2: Security Incident Impact - The company disclosed that hackers had "long-term, persistent access" to certain systems, including source code for a key cybersecurity service [2] - U.S. officials indicated that federal networks were targeted in the aftermath of the hack, prompting calls for immediate action [3] - F5 expects near-term disruption to sales cycles as customers focus on assessing and remediating their environments following the security incident [3] Group 3: Market Reaction - Shares of F5 fell 10% in after-hours trading, potentially erasing most of the stock's gains for the year [1]