F5 Networks Announces Results for Third Quarter of Fiscal 2010
July 21, 2010 20:05 UTC
Strong product sales drive revenue up 12 percent sequentially, 46 percent year over year
SEATTLE--(BUSINESS WIRE)-- For the third quarter of fiscal 2010, F5 Networks, Inc. (NASDAQ:FFIV) announced revenue of $230.5 million, up 11.8 percent from $206.1 million in the prior quarter and 45.7 percent from $158.2 million in the third quarter of fiscal 2009.
GAAP net income was $40.5 million ($0.50 per diluted share), compared to $33.1 million ($0.41 per diluted share) in the prior quarter and $22.8 million ($0.29 per diluted share) in the third quarter a year ago.
Excluding the impact of stock-based compensation, non-GAAP net income was $53.3 million ($0.66 per diluted share), compared to $45.2 million ($0.56 per diluted share) in the prior quarter and $31.9 million ($0.40 per diluted share) in the third quarter of fiscal 2009.
A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.
“Strengthening demand for our BIG-IP family of application delivery controllers continued to drive strong year-over-year revenue growth across all regions,” said John McAdam, F5 president and chief executive officer.
“BIG-IP product revenue was up 13 percent compared to the prior quarter and 57 percent compared to the third quarter of last year. In addition, we saw solid sequential revenue growth from our ARX file virtualization products.
“During the quarter, we enhanced and enlarged our product portfolio with the introduction of TMOS version 10.2, designed to help customers extend enterprise data center architecture to the cloud and integrate disparate technologies for application delivery, security, optimization, data management, and infrastructure control. We also added two new high-end platforms to our BIG-IP appliance offerings and introduced our BIG-IP LTM VE virtual appliance. All of these new products have been well received by customers, and BIG-IP LTM VE has helped drive hardware sales by allowing customers to test BIG-IP in their networks before they purchase production systems.”
McAdam said the company also continued to see solid growth in its services business. During the quarter, services revenue grew 9 percent sequentially and 33 percent year over year. Reflecting the growth of new and renewed service maintenance contracts booked during the quarter, deferred revenue increased to $239.6 million, up 6 percent from the prior quarter and 41 percent from the third quarter of fiscal 2009.
Strong revenue growth and further improvement in product gross margin enabled the company to add approximately 80 employees in the third quarter while achieving a non-GAAP operating margin of 33.6 percent.
During the quarter, the company generated $75 million in cash from operations. After repurchasing 291,027 shares of its outstanding common stock the company ended the quarter with $781 million in cash and investments.
For the fourth quarter of fiscal 2010, ending September 30, management has set a revenue goal of $242 million to $247 million with a GAAP earnings target of $0.53 to $0.55 per diluted share. Excluding stock-based compensation expense, the company’s non-GAAP earnings target is $0.69 to $0.71 per diluted share. |
