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Technology Stocks : F5 Networks, Inc. (FFIV) -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (835)	4/26/2000 10:33:00 PM
From: Danny Chan	Respond to of 1801

Rarebird. Just catch the cc as well. agree with what you said. blame the irrationality of short-term greedy markets. but I think the main reason is the larger than expected S&M expenses caused number short of most expectation. don't get me wrong, but the published estimates are usually not what mostly expected here. given the operating margin trend we saw from the last two quarters, I think many are expecting to have 22-24c using 18%-20% margin. the fact that management underestimated the need for significant S&M expenses at the end of the last quarter caused some poor communications with the shareholder. so they could have done better by providing a more linear margin trend. simply state "margin will fluctuate" means uncertainty! (I hope they understand how the market works these days) I would stay away for a while until the market settles down. the fact that there are so many others with much better visibility and earning momentum in correction and I would expect them to draw more attention.

To: Rarebird who wrote (835)	4/27/2000 7:18:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 1801

Cool heads prevail.......conference call: by: buybuy11 4/27/00 2:49 am Msg: 30867 of 30870 PALO ALTO, Calif., April 26 (Reuters) - Shares of F5 Networks Inc <FFIV.O> fell sharply Wednesday, one day after the company reported a generally strong earnings report, and some analysts attributed the drop to confusion over the company's forward-looking statements. F5, which makes equipment for Internet traffic and content management, reported a second-quarter net profit on Tuesday that was in line with earnings estimates, and sales that exceeded most forecasts. However its stock lost more than 20 percent of its value on Wednesday, dropping 14-37/64 to close at 44-1/8. Bob Lam, an analyst with Bear Stearns in New York, said he was pleased with the numbers, and even increased his revenue forecasts based on guidance provided by the company in a conference call. But he said he suspected some investors inadvertently took the company's forecast for sequential sales growth in the mid-teens to be downward guidance. "Actually, they were guiding their estimates up," he said.