F5 Networks Announces Results for Second Quarter of Fiscal 2006
SEATTLE--(BUSINESS WIRE)--April 20, 2006--For the second quarter
of fiscal 2006, F5 Networks (Nasdaq:FFIV) announced revenue of $94.1
million, up 7 percent from $88.1 million in the prior quarter and 39
percent from $67.7 million in the second quarter of fiscal 2005. Net
income was $16.1 million ($0.39 per diluted share), compared to $15.2
million ($0.37 per diluted share) in the prior quarter and $12.1
million ($0.31 per diluted share) in the second 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 second quarter and first half
of fiscal 2006. Excluding stock compensation expense, net income for
the second quarter of fiscal 2006 was $20.3 million ($0.49 per diluted
share) compared to pro forma net income $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 Condensed Consolidated Statements of
Operations.
F5 president and chief executive officer John McAdam said revenue
during the second quarter grew sequentially in all international
regions and across all product categories, including the company's
security offerings and its recently acquired WAN optimization and
application acceleration products. "As expected, we saw strong growth
in Japan, which achieved its highest quarterly revenue to date. In
addition, both EMEA and Asia Pacific delivered solid sequential
growth."
"The one area where we saw marked softness during the quarter was
in our North American business, which was down sequentially due to a
slowdown in our US Federal business during the last few weeks of the
quarter. Excluding US Federal revenue, North American revenue was up
sequentially from the prior quarter."
During the third quarter, McAdam said he expects continued
sequential growth tempered by seasonal softness that characterizes the
first quarter of Japan's fiscal year. Accordingly, management has set
a revenue target of $96 million to $98 million and an earnings target
of $0.40 to $0.41 per diluted share, including charges for stock-based
compensation. Excluding the compensation charges, the anticipated
earnings range is expected to be $0.50 to $0.51 per diluted share. A
reconciliation of the company's expected reported and pro forma
earnings is provided in the following table: |
