F5 Networks Announces Results for Second Quarter of Fiscal 2005
Company Reports 67% Year-Over-Year Revenue Growth, Further
Improvements in Profitability, Record Cash Flow from Operations
SEATTLE--(BUSINESS WIRE)--April 20, 2005--For the second quarter
of fiscal 2005, F5 Networks (Nasdaq:FFIV) announced revenue of $67.7
million, up 13 percent sequentially over revenue of $60.0 million in
the first quarter and 67 percent over revenue of $40.7 million in the
second quarter a year ago. Net income for the quarter was $12.1
million ($0.31 per diluted share), compared to $10.0 million ($0.26
per diluted share) in the prior quarter.
For the second quarter of fiscal 2004 the company reported net
income of $6.0 million ($0.16 per diluted share). However, during the
fourth quarter of 2004, F5 became subject to income taxes on U.S.
income, and to present the results for prior periods on a tax-affected
basis that is comparable to the current period, the company's
financial statements include pro forma earnings for the second quarter
of fiscal 2004. On a pro forma basis, net income for the second
quarter of fiscal 2004 would have been $4.0 million ($0.11 per diluted
share) had the company recorded a 37 percent provision for income
taxes.
"During the second quarter, we continued to see solid growth
across our business," said John McAdam, F5 president and chief
executive officer. "Demand for our application traffic management
products remained strong, and sales of BIG-IP version 9, launched last
September, accounted for 47 percent of traffic management revenue.
Likewise, strengthening demand for our FirePass SSL VPN products
fueled the growth of security revenue to $6.5 million, up 28 percent
from the prior quarter."
With gross margins remaining constant at 77 percent, McAdam said a
further decline in the company's expense ratio boosted its operating
margin to 26 percent, up from 14 percent in the second quarter of last
year. In addition, the company's financial position continued to
strengthen during the quarter, with record cash flow of $17.6 million
from operations contributing to a quarter-end balance of $293 million
in cash and investments.
For the third quarter of fiscal 2005, ending June 30, McAdam said
the company has set a revenue target of $70 million to $72 million,
with an earnings target of $0.33 to $0.34 per diluted share. |
