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

To: Pink Minion who wrote (917)	5/8/2000 5:42:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 1801

Bear Stearns Quotes... by: MemeTrader 5/8/00 5:07 pm Msg: 32126 of 32130 Long-term we believe that the F5 content and traffic delivery platform will emerge as the industry standard. We believe that business during April was robust. We feel comfortable with our FYQ3 revenue and EPS forecasts of $26.7 million and $0.19. The balance sheet remains strong and we believe that DSO should remain at the level of the two prior quarters of 75-85 days. We believe that the direct channel revenue will continue to grow, including Exodus where business remains strong, as well as at HP, NTT, and Cable and Wireless, among others. Gross margins should remain attractive at the current level of about 71%. It appears that F5?s WAN traffic and content management solutions (3DNS and Global/SITE) are experiencing strong demand, and should continue to increase as a percent of sales. An opportunity exists for F5 to upsell these products into its impressive customer based of over 1,600 firms. We believe that F5 is strongly positioned in terms of both innovative technology and strong sales and marketing. As such, we reiterate our BUY rating. We believe that the current valuation of F5 shares represents a very compelling buying opportunity for technology investors. In our view, F5 belongs among the elite ranks of the highly valued internet infrastructure companies such as Inktomi, Foundry, Alteon, Packeteer and Juniper, which trade in the range of 20x-100x CY 2001 estimated revenues. F5 is currently trading well below this range, or about 4x our CY 2001 revenue projection of $183 MM and only 36x our CY01 fully taxed EPS estimate of $0.94.