F5 Networks Announces Fourth Quarter and Fiscal 2009 Results
Solid Sequential Growth Drives Record Revenue and Earnings
SEATTLE--(BUSINESS WIRE)-- F5 Networks, Inc. (NASDAQ: FFIV) today announced revenue of $175.1 million for the fourth quarter of fiscal year 2009, up 11 percent from $158.2 million in the prior quarter and 2 percent from $171.3 million in the fourth quarter of fiscal year 2008. For fiscal year 2009, revenue was $653.1 million, up slightly from $650.2 million in fiscal year 2008.
GAAP net income for the fourth quarter was $28.4 million ($0.36 per diluted share) compared to $22.8 million ($0.29 per diluted share) in the third quarter of 2009 and $19.7 million ($0.24 per diluted share) in the fourth quarter a year ago. GAAP net income for the year was $91.5 million ($1.14 per diluted share) versus $74.3 million ($0.89 per diluted share) in fiscal year 2008.
Excluding the impact of stock-based compensation, non-GAAP net income for the fourth quarter was $40.0 million ($0.50 per diluted share), compared to $31.9 million ($0.40 per diluted share) in the prior quarter and $33.4 million ($0.41 per diluted share) in the fourth quarter of fiscal 2008 (which also excluded a non-recurring loss on facility exit and sublease). For fiscal year 2009, non-GAAP net income was $134.6 million ($1.68 per diluted share) versus $121.3 million ($1.45 per diluted share) in fiscal year 2008.
A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.
F5 president and chief executive officer John McAdam said the rebound in revenue growth during the quarter reflected a continuation of the trend toward more normal customer spending patterns that the company experienced in the prior quarter. “Bookings were up across all geographic regions, especially in North America, as customers began purchasing equipment for new projects and moving forward with projects they had put on hold during the first half of the year. In addition, growing awareness of the performance and functionality of TMOS version 10 helped drive strong demand for our new family of BIG-IP application delivery controllers and the growth of product revenue, which increased nearly 14 percent from Q3.
”During Q4, a slight increase in gross margins combined with strong revenue growth to drive our non-GAAP operating margin to just under 32 percent. As a result, earnings on both a GAAP and non-GAAP basis came in well above our guidance for the quarter.
“We also saw continued improvement on our balance sheet. Deferred revenue grew 7.8 percent to $183.1 million from the prior quarter and cash flow from operations was $58.6 million. Cash flow for the full year was $202 million, and after repurchasing 3.3 million shares of F5 common stock for $87.4 million in fiscal year 2009 we ended the year with $574 million in cash and investments.
“In general, Q4 was a strong finish to a challenging year. While it is still too early to rule out the possibility of another broad economic setback, the strength of our current business and our growing pipeline are encouraging signs that the positive trends we saw in the last two quarters will continue through fiscal 2010.”
For the first quarter of fiscal 2010, ending December 31, the company has set a revenue target of $182 million to $187 million and a GAAP earnings target of $0.31 to $0.33 per diluted share. Excluding stock-based compensation expense, the company’s non-GAAP earnings target is $0.47 to $0.49 per diluted share. |
