F5 Networks Announces Preliminary Results for Second Quarter of Fiscal 2009
Press Release Source: F5 Networks, Inc. - Tuesday April 7, 2009, 4:05 pm EDT
SEATTLE--(BUSINESS WIRE)--F5 Networks, Inc. (NASDAQ:FFIV - News) today announced preliminary results for the second quarter of fiscal 2009, ended March 31. Revenue for the quarter is expected to be $154.1 million, below the company’s guidance of $157 million – $164 million. GAAP EPS is expected to be $0.23 to $0.24 per diluted share, exceeding the company’s guidance of $0.19 - $0.21 per diluted share. Non-GAAP EPS is expected to be $0.37 to $0.38 per diluted share, within the company’s guided range of $0.36 to $0.38 per diluted share.
According to John McAdam, F5 president and chief executive officer, sales during the second quarter were slower than expected across all geographic regions. Revenue from the company’s application delivery controller business was flat compared with the second quarter of last year but down sequentially from the first quarter of fiscal 2009. Revenue from the company’s file virtualization business was down year over year but grew approximately 23 percent sequentially from the first quarter of fiscal 2009.
Despite the slowdown in overall sales, the company expects to meet its non-GAAP gross margin targets for the quarter. However, as a result of an accrual for a legal settlement, the company expects its GAAP gross margin to be slightly below management’s guided range of 77-78%. As a result of aggressive cost-reduction and expense-control measures, the company expects to achieve a non-GAAP operating margin above 27% for the quarter, exceeding its target of 25%.
Cash flow from operations is expected to be $39 million, above the company’s guidance of $35 million, and after purchasing $27.4 million of F5 common stock the company ended the quarter with cash and investments of approximately $499 million.
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