F5 Networks Announces Results for Third Quarter of Fiscal 2011
July 20, 2011
SEATTLE--(BUSINESS WIRE)-- For the third quarter of fiscal 2011, F5 Networks, Inc. (NASDAQ: FFIV) announced revenue of $290.7 million, up 4.7 percent from $277.6 million in the prior quarter and 26.1 percent from $230.5 million in the third quarter of fiscal 2010.
GAAP net income was $62.5 million ($0.77 per diluted share), compared to $55.6 million ($0.68 per diluted share) in the prior quarter and $40.5 million ($0.50 per diluted share) in the third quarter a year ago.
Excluding the impact of stock-based compensation net of tax, non-GAAP net income was $79.4 million ($0.97 per diluted share), compared to $71.5 million ($0.88 per diluted share) in the prior quarter and $53.3 million ($0.66 per diluted share) in the third quarter of fiscal 2010.
A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.
“Strong sales in APAC and Japan, in particular of our high-end products, accounted for most of the revenue growth during the quarter,” said John McAdam, F5 president and chief executive officer. “EMEA revenue was down from the prior quarter, and Americas revenue was up only slightly, due in part to a slowdown in U.S. Federal sales.
“In June we began shipping VIPRION 2400, our new chassis-based application delivery controller that offers scalable performance and other advanced features of the VIPRION architecture at a price in the mid-range of our ADC product family. Both enterprise customers and service providers have expressed growing interest in this product, and we expect sales to ramp steadily over the next several quarters. This quarter, we are on track to release version 11.0 of our TMOS operating system, which includes user-friendly application templates, support for virtual clustered multi-processing, and more than 150 new features, many of them geared toward service providers.
“With the rollout of these new products and a number of others over the coming year, we continue to believe that our competitive position in the traditional ADC market has never been stronger, and that the opportunity to expand our footprint in adjacent markets has never been greater. As a result, we remain confident in our ability to sustain top-line growth and profitability by continuing to expand our reach into new and existing markets and by hiring and retaining the best people.
“During the third quarter we added 95 employees, roughly a third of them in sales and sales support. At the same time, productivity across the organization enabled us to achieve a non-GAAP operating profit margin of 38.2 percent,” McAdam said.
The company also continued to strengthen its financial position during the quarter, generating $101 million in cash from operations. After repurchasing 471,633 shares of our outstanding common stock F5 ended the quarter with $1.06 billion in cash and investments.
For the current quarter, ending September 30, management has set a revenue goal of $307 million to $312 million with a GAAP earnings target of $0.75 to $0.77 per diluted share. Excluding stock-based compensation expense, the company’s non-GAAP earnings target is $0.97 to $0.99 per diluted share |
