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

To: puborectalis who wrote (1431)	1/23/2003 7:53:02 AM
From: JakeStraw	Read Replies (1) \| Respond to of 1801

F5 Networks Announces Fiscal First Quarter Profit SEATTLE--(BUSINESS WIRE)--Jan. 22, 2003--F5 Networks (Nasdaq:FFIV) today announced net income of $520,000 ($0.02 per share) on revenue of $27.1 million for the first quarter of fiscal 2003. In the first quarter of fiscal 2002 the company reported a net loss of $2.1 million ($0.08 per share) on revenue of $27.0 million. F5 president and chief executive officer John McAdam said the company's return to profitability was a result of continuing improvements in its business model, reflected in several key metrics including improved gross margin and lower operating expenses. In addition, he said, the company generated positive cash flow from operations for the seventh consecutive quarter, increasing cash and investments to $85.2 million. "During the first quarter, the products we announced in late October got off to a strong start and were well-accepted by our customer base. These new products include the BIG-IP(R) 5100 and BIG-IP 2400 application switches, featuring faster processors and improved SSL performance, and the BIG-IP 1000, a new line of entry-level application switches. The BIG-IP 2400 also features our new Packet Velocity ASIC which leads the industry in Layer 4 performance. All three products began shipping in early December with version 4.5 of our BIG-IP Application Traffic Management software incorporating Universal Inspection Engine (UIE), which can identify any value in a TCP/IP header or payload, and iRules, which can direct, persist, or filter traffic based on values identified by UIE," McAdam said. "In conjunction with continued successful execution of our iControl(TM) strategy, we believe the superior performance and functionality of our new products will be primary drivers of our revenue growth over the next three quarters. In the first quarter, more than 20 percent of product sales were iControl-related. On January 15, we announced our new Solution Center, designed to demonstrate online how customers can obtain increased ROI from existing applications by using F5 products. Accessible through the F5 Web site, the Solution Center's Test Lab allows customers, partners and prospects to conduct application integration and interoperability testing with third-party applications, then try out various interoperability and integration scenarios using our products and leading infrastructure software, such as BEA WebLogic, Microsoft .NET, Oracle9i Application Server, and Siebel 7, as well as other applications such as Intrusion Detection Systems," McAdam said. Underpinned by the strength of its current product line and the unique capabilities of its new Solution Center, McAdam added, F5 is well-positioned, both financially and from a market perspective, to take advantage of opportunities in the emerging markets for blade servers, Web services and wireless Internet applications, which could begin to impact the company's results in the second half of fiscal 2003. For the second quarter of fiscal 2003, he said the company has set a target of $27.0 million to $28.5 million in revenue with net income of $0.02 to $0.04 per share.