F5 Networks Announces Results for Third Quarter of Fiscal 2007

F5 has recently launched the Big-IP WebAccelerator.

It now publishes the result for its third quarter of fiscal 2007.

Press Release:

Kuala Lumpur, 3 Aug 2007 —For the third quarter of fiscal 2007, ended June 30, F5 Networks announced revenue of USD$132.4 million, up 4 percent from USD$127.6 million in the prior quarter and 32 percent from USD$100.1 million in the third quarter of fiscal 2006. Net income was USD$21.8 million (USD$0.51 per diluted share), compared to USD$20.0 million (USD$0.47 per diluted share) in the prior quarter and USD$17.0 million (USD$0.41 per diluted share) in the third quarter a year ago.

Positive Book-to-Bill:

Representing the company’s 18th consecutive quarter of sequential revenue growth, results were within the company’s guided revenue range and above its published earnings target. According to F5 president and chief executive officer, John McAdam, bookings outpaced revenue during the quarter, resulting in a positive book-to-bill at quarter-end.

Strengthened Balance Sheet:

In addition to solid revenue and earnings growth, the company continued to strengthen its balance sheet during the third quarter. Deferred revenue, principally from service maintenance contracts, grew 11% compared to the prior period to USD$83.2 million. Cash flow from operations was USD$38.2 million, and the company ended the quarter with USD$633 million in cash and investments.

Sales Organization Expansion:

Commenting on the current quarter, McAdam said he believes F5 is positioned for a strong finish to fiscal 2007. “For a variety of reasons, including seasonal strength in North America, Japan and the U.S. Federal market, Q4 is typically our strongest quarter. We also expect to begin seeing a significant return on the investments we made in expanding our sales organization during the first half of the year.”
For the fourth quarter of fiscal 2007, ending September 30, McAdam said management has set a revenue goal of USD$142 million to USD$144 million with an earnings target of USD$0.53 to USD$0.55 per diluted share.

Two-for-One Forward Stock Split:

F5 also announced today that its Board of Directors has approved a two-for-one forward stock split of the Company’s common stock. This stock split will be effected by the issuance of a dividend of one share of F5 common stock for every share of its common stock issued and outstanding as of the record date of August 10, 2007. New shares of F5 common stock resulting from the stock split will be issued by F5 transfer agent, American Stock Transfer, and F5 common stock will begin trading on the Nasdaq Global Select Market on a split-adjusted basis on August 20, 2007. Following the stock split, F5 will have approximately 84.2 million shares outstanding, based on the number of shares outstanding as of July 23, 2007. Reflecting the effect of the stock split, management’s earnings guidance of USD$0.53 to USD$0.55 per diluted share referenced above translates to USD$0.27 to USD$0.28 per diluted share on a post-split basis. In addition, F5 will amend its articles of incorporation to increase its authorized number of shares of common stock from 100 million shares to 200 million shares concurrent with the stock split.

If a shareholder is contemplating a sale of F5 shares between the record date and the payment date, he or she should consult a broker regarding entitlement to the split shares.

F5 third quarter balance sheet 2007

F5 Statement of Operations 2007

About F5 Networks:

F5 Networks is the global leader in Application Delivery Networking. F5 provides solutions that make applications secure, fast and available for everyone, helping organizations get the most out of their investment. By adding intelligence and manageability into the network to offload applications, F5 optimizes applications and allows them to work faster and consume fewer resources. F5's extensible architecture intelligently integrates application optimization, protects the application and the network, and delivers application reliability - all on one universal platform. Over 10,000 organizations and service providers worldwide trust F5 to keep their applications running. The company is headquartered in Seattle, Washington with offices worldwide.

For more information:

Jade Lo
Sirius PR Sdn Bhd
(603) 7805 2700