F5 Networks Announces Fiscal Second Quarter Results;
Record Quarterly Revenue Drives Improving Profitability
SEATTLE--(BUSINESS WIRE)--April 21, 2004--F5 Networks
(Nasdaq:FFIV) today announced net income of $6.0 million ($0.16 per
diluted share) on record revenue of $40.6 million for the second
quarter of fiscal 2004, up from $3.8 million ($0.11 per diluted share)
on revenue of $36.1 million in the first quarter. In the second
quarter of fiscal 2003 the company reported net income of $0.8 million
($0.03 per diluted share) on revenue of $28.0 million.
F5 president and chief executive officer John McAdam said the
company's revenue growth was driven by strong international sales,
which accounted for 45 percent of total revenue. "With the Japanese
fiscal year ending in March, the second quarter is typically our
strongest in Japan and this quarter was no exception."
In terms of mix, McAdam said both product and service revenue grew
sequentially and were up sharply from the second quarter a year ago.
"Product revenue, which increased 46 percent year over year, reflects
growing demand for our core traffic management products and our
FirePass SSL VPN appliances, which accounted for 9 percent of product
revenue. In addition, we continue to see improving earnings leverage
in our business model, with our operating margin at 14 percent, up
from 11 percent in the prior quarter. Service revenue, which grew 42
percent year over year, points to our increasing penetration of the
enterprise market and the high rate of service contract renewal in our
installed base."
As the company has expanded its share of the enterprise market,
McAdam said customers have increasingly recognized the central
importance of application traffic management in ensuring the delivery
of mission-critical applications to any point in their networks and
improving application performance. "A growing number of enterprise
customers also see BIG-IP and its position in the network as an ideal
platform for additional functionality. As a result, I'm very excited
about the upcoming release of our next-generation application traffic
management products, which will add new functionality to BIG-IP and
deliver major performance improvements in Layer 4/7 processing and SSL
acceleration."
To ensure a solid financial foundation for its product and
business development programs, McAdam said the company continued to
strengthen its balance sheet during the quarter. Days sales
outstanding (DSO) fell to 42 days, contributing to positive cash flow
of $10.2 million from operations. At March 31, 2004, the company had
$227 million in cash, cash equivalents, and investments.
For the third quarter of fiscal 2004, McAdam said management
believes the company will continue to grow sequentially and has set a
target range of $42 million to $44 million in revenue with net income
of $0.18 to $0.20 per share. |
