F5 Networks Announces Results for the First Quarter of Fiscal 2006
Solid Revenue Gains Reflect Continuing Strength in Core Business
SEATTLE--(BUSINESS WIRE)--Jan. 19, 2006--For the first quarter of
fiscal 2006, F5 Networks (Nasdaq:FFIV) announced revenue of $88.1
million, up 9 percent from $80.6 million in the prior quarter and 47
percent from $60.0 million in the first quarter of fiscal 2005. Net
income was $15.2 million ($0.37 per diluted share), compared to $15.7
million ($0.39 per diluted share) in the prior quarter and $10.0
million ($0.26 per diluted share) in the first quarter a year ago.
During the fourth quarter of fiscal 2005, the company began
expensing stock-based compensation. To facilitate a comparison of this
quarter's results with the results of prior quarters, the company is
presenting pro forma net income for the first quarter of fiscal 2006
and the fourth quarter of fiscal 2005. Excluding the effects of stock
compensation expense, net income for the first quarter of fiscal 2006
was $19.0 million ($0.47 per diluted share) compared to $19.0 million
($0.47 per diluted share) in the prior quarter.
A reconciliation of reported net income to pro forma net income is
included on the attached Consolidated Statements of Operations.
F5 president and chief executive officer John McAdam said the
company's revenue growth reflected the continuing strength of its core
business and growing demand for its TMOS-based products. Revenue from
the company's BIG-IP family of products grew 13 percent sequentially,
and demand was strong across all geographic regions. As a result,
overall revenue was up sequentially in North America, APAC and EMEA.
In Japan, revenue was essentially flat with revenue in the seasonally
strong September quarter.
Since the completion of the Swan Labs acquisition on October 4,
integration of teams and products has proceeded smoothly. Given the
incremental expenses related to the Swan integration, McAdam said he
was pleased the company managed to maintain its pro forma operating
margin at 31 percent, due in part to a higher mix of software revenue
that boosted gross margins to 78 percent. In addition, McAdam said,
the company continued to strengthen its balance sheet during the
quarter. Deferred revenue grew 10 percent to $43.3 million, and $34.5
million in cash flow from operations contributed to a quarter-end
balance of $373 million in cash and investments, after paying $43
million (net) in cash for Swan Labs. |
