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

To: Luce Wildebeest who wrote (1346)	1/30/2001 4:20:07 PM
From: Luce Wildebeest	Read Replies (1) \| Respond to of 1801

SEATTLE--(BUSINESS WIRE)--Jan. 30, 2001--In line with its December 27 announcement, F5 Networks, Inc. (Nasdaq:FFIV) today reported revenue of $24.7 million for the first quarter of fiscal 2001, ended December 31, 2000. The company also reported a loss of $10.3 million ($0.47 per share) before tax benefits and a one-time restructuring charge of $1.1 million related to headcount reductions and other measures aimed at streamlining the company's operations. Including the restructuring charge and tax benefits, the net loss for the quarter was $8.9 million ($0.41 per share). Robert Chamberlain, senior vice president and chief financial officer, said that all of the actions related to the company's restructuring charge reflected in the December quarter were completed in January. As a result of those actions, which included a 17 percent reduction in the company's workforce, Chamberlain said the company expects to reduce its operating expenses by $7 million to $8 million over the remainder of the current fiscal year. In addition, he said the company is pursuing other means to reduce its expense structure and improve its operational efficiency. John McAdam, president and chief executive officer, emphasized that reducing the company's cost structure is just one element of management's plans to reposition the company and enable it to compete successfully in a slower-growing economy. "It's painfully obvious to everyone, including our customers and partners, that the business climate today is very different from what it was a year or even six months ago," McAdam said. "At that time, F5's biggest challenge was to acquire the people and resources necessary to stay ahead of demand for our products and services. "In the December quarter, the sudden economic downturn and the resulting drop-off in revenue forced us to re-examine our entire business model and address issues that had arisen. Our just-completed restructuring -- both the reduction in headcount and the subsequent realignment of groups and priorities within the remaining organization -- resolved many of those issues. In addition, we are taking a number of other steps to adapt our business model to the realities of the current economic environment and position the company to catch the first wave of economic recovery. "During the next six months our product initiatives will be aimed at improving the functionality of our current offerings and delivering complementary products that will enable us to sell into a broader segment of the market. We are also turning up our investments in product integration that will allow us to enhance functionality across our entire suite of traffic and content management products. "Despite the slowdown in our sales growth, the company's relative market position remains strong and we continue to win significant business against our larger competitors. With several product upgrades scheduled to roll out over the next two quarters, we believe we can continue to widen our competitive edge and further strengthen our market position. As we shift the focus of our sales and marketing efforts to large enterprise customers, we also believe the superior functionality and reliability of our products will become an even more important differentiator against our competition. "With that in mind, I'm confident the company is well-positioned to succeed in the current market and show steady improvement throughout the remainder of this year. Our target is to break even in Q3 of the current fiscal year and return to solid profitability in Q4. For the current quarter, our goal is revenue in the range of $26 million to $28 million with a loss before taxes and any one-time charges of $0.22.