UNITED STATES
FORM 8-K
CURRENT REPORT
Date of Report (Date of earliest event reported):
F5 Networks, Inc.
SECURITIES AND EXCHANGE COMMISSION
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
January 21, 2004
Washington
(State or other jurisdiction
of incorporation)
000-26041
(Commission
File Number)
91-1714307
(IRS Employer
Identification No.)
401 Elliott Avenue West
Seattle, WA 98119
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code 206-272-5555
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits | ||||||||
Item 12. Results of Operations and Financial Condition | ||||||||
SIGNATURES | ||||||||
INDEX TO EXHIBITS | ||||||||
EXHIBIT 99.1 |
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
(a) Financial Statements of Business Acquired.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable.
(c) Exhibits:
99.1 | Press release of F5 Networks, Inc. announcing quarterly earnings dated January 21, 2004. |
Item 12. Results of Operations and Financial Condition
On January 21, 2004, F5 Networks, Inc. issued a press release containing quarterly earnings results for the first quarter ended December 31, 2003. The press release is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 21, 2004
F5 NETWORKS, INC | ||||
By: |
/s/ John McAdam
|
|||
John McAdam
Chief Executive Officer & President |
INDEX TO EXHIBITS
Exhibit
Number
Description
99.1
Press release of F5 Networks, Inc. announcing quarterly
earnings dated January 21, 2004.
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: |
Investor Relations
John Eldridge (206) 272-6571 j.eldridge@f5.com |
|
Public Relations
Alane Moran (206) 272-6850 a.moran@f5.com |
F5 Networks Announces Fiscal First Quarter Results
Strong revenue growth drives improved profitability
SEATTLE, WAJanuary 21, 2004 F5 Networks today announced net income of $3.8 million ($0.11 per diluted share) on revenue of $36.1 million for the first quarter of fiscal 2004, up from $1.4 million ($0.05 per diluted share) on revenue of $31.6 million in the fourth quarter of 2003. In the first quarter of fiscal 2003 the company reported net income of $0.5 million ($0.02 per diluted share) on revenue of $27.1 million.
F5 president and chief executive officer John McAdam said the companys strong performance reflected continuing strength in its core traffic management business across all geographic regions and product lines, which helped boost its first quarter operating margin to 11 percent. Year over year, product revenue grew 35 percent while service revenue increased 28 percent during the same period. In addition, McAdam said sales of the companys recently acquired FirePass SSL VPN technology were stronger than anticipated, accounting for more than 5 percent of product sales.
During the past several quarters weve seen increasing returns from our ongoing investments in product development and our focus on enterprise customers, McAdam said. Growing demand for our core products and services is evidence that enterprises are increasingly aware of the benefits of application traffic management in general and the advanced features and functionality that have made BIG-IP a technology and market leader.
In addition to its strong operating results, McAdam said the company continued to strengthen its balance sheet during the quarter. Days sales outstanding (DSO) fell to 44 days, contributing to positive cash flow of $8.4 million from operations. At December 31, 2003, the company had $205.0 million in cash, cash equivalents and investments, including $113.6 million from its recently completed public offering. For the second quarter of fiscal 2004, McAdam said management believes the company will continue to grow sequentially and has set a target range of $37.0 million to $39.0 million in revenue with net income of $0.13 to $0.15 per share.
F5 Networks Announces Fiscal First Quarter Results
About F5 Networks
F5 Networks keeps IP-based traffic flowing and business information always available to any user from any device, anywhere in the world. Our products ensure secure and reliable access to servers and the applications that run on them. F5 also provides tools to automate communications between applications and the network, eliminating tedious, manual processes.
As the pioneers of intelligent load balancing, F5s continued innovations help businesses optimize and protect their IT investments. Our mission is to ensure the availability, scalability, performance, and security of IT resources that enterprises require to successfully do business. The company is headquartered in Seattle, Washington, with offices worldwide. For more information go to www.f5.com.
Forward Looking Statements
Statements in this press release concerning sequential growth, revenue, earnings and net income targets for the second quarter of fiscal 2004 and other statements that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of F5, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: acceptance of F5s products, the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive pricing pressures; increased sales discounts; F5s ability to sustain or develop distribution relationships; F5s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5s ability to expand in the international markets and the unpredictability of F5s sales cycle. F5 has no duty to update any guidance provided. More information about potential risk factors that could affect F5s business and financial results is included in F5s annual report on Form 10-K for the fiscal year ended September 30, 2003, and other public filings with the Securities and Exchange Commission.
# # #
F5 Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
September 30,
2003
2003
(unaudited)
$
27,712
$
10,351
110,190
34,527
17,496
19,325
1,158
762
4,574
4,779
161,130
69,744
6,000
6,000
9,871
10,079
67,097
34,132
24,188
24,188
4,010
4,030
$
272,296
$
148,173
$
2,670
$
3,714
13,348
13,148
21,775
19,147
37,793
36,009
1,668
1,584
303
151
1,971
1,735
259,837
141,709
(10
)
359
195
(27,664
)
(31,465
)
232,532
110,429
$
272,296
$
148,173
F5 Networks, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three months ended
December 31,
2003
2002
$
26,376
$
19,501
9,705
7,555
36,081
27,056
5,849
4,057
2,462
2,161
8,311
6,218
27,770
20,838
14,954
12,759
5,444
4,395
3,347
3,350
10
66
23,755
20,570
4,015
268
184
462
4,199
730
398
210
$
3,801
$
520
$
0.13
$
0.02
30,159
25,883
$
0.11
$
0.02
33,121
26,935