“From a market perspective, Telco bookings were down sharply on both a sequential and year-over-year basis. U.S. Federal sales were also down significantly from the second quarter a year ago.
“Currently, we are looking into all the factors affecting the quarter’s results and we plan to provide more color during our regularly scheduled release and conference call on April 24,” McAdam said.
A reconciliation of the company’s anticipated GAAP and non-GAAP earnings is provided in the following table:
Three months ended |
||||||||
Reconciliation of Expected Non-GAAP Second Quarter Earnings |
Low |
High |
||||||
Net income | $ | 62.8 | $ | 63.6 | ||||
Stock-based compensation expense | $ | 27.6 | $ | 27.6 | ||||
Amortization of purchased intangible assets | $ | 1.0 | $ | 1.0 | ||||
Tax effects related to above items |
($ |
7.2 |
) |
($ |
7.2 |
) | ||
Non-GAAP net income excluding stock-based compensation expense and amortization of purchased intangible assets |
$ | 84.2 | $ | 85.0 | ||||
Net income per share - diluted | $ | 0.79 | $ | 0.80 | ||||
Non-GAAP net income per share - diluted | $ | 1.06 | $ | 1.07 | ||||
Conference Call Today
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The company will report final results for the second quarter of fiscal
2013 in its regularly scheduled earnings release and conference call on
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Forward Looking Statements
Statements, if any, in this press release concerning the continuing
strength of F5’s business, sequential growth, the target revenue and
earnings range, share amount and share price assumptions, demand for
application delivery networking and storage virtualization products and
other statements that are not historical facts are forward-looking
statements. Such forward-looking statements involve risks and
uncertainties, as well as assumptions and other factors that, if they do
not fully materialize or prove correct, could cause the actual results,
performance or achievements of the company, 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, but are not limited to: customer acceptance of our
new traffic management, security, application delivery, WAN optimization
and storage virtualization offerings; the timely development,
introduction and acceptance of additional new products and features by
F5 or its competitors; competitive pricing pressures; increased sales
discounts; uncertain global economic conditions which may result in
reduced customer demand for our products and services and changes in
customer payment patterns; F5’s ability to sustain, develop and
effectively utilize distribution relationships; F5’s ability to attract,
train and retain qualified product development, marketing, sales,
professional services and customer support personnel; F5’s ability to
expand in international markets; the unpredictability of F5’s sales
cycle; the share repurchase program; future prices of F5’s common stock;
and other risks and uncertainties described more fully in our documents
filed with or furnished to the
GAAP to non-GAAP Reconciliation
F5’s management evaluates and makes operating decisions using various
operating measures. These measures are generally based on the revenues
of its products, services operations and certain costs of those
operations, such as cost of revenues, research and development, sales
and marketing and general and administrative expenses. One such measure
is net income excluding stock-based compensation, amortization of
purchased intangible assets and acquisition-related charges, net of
taxes, which is a non-GAAP financial measure under Section 101 of
Regulation G under the Securities Exchange Act of 1934, as amended. This
measure consists of GAAP net income excluding, as applicable,
stock-based compensation, amortization of purchased intangible assets
and acquisition-related charges. This measure of non-GAAP net income is
adjusted by the amount of additional taxes or tax benefit that the
company would accrue if it used non-GAAP results instead of GAAP results
to calculate the company’s tax liability. Stock-based compensation is a
non-cash expense that F5 has accounted for since July 1, 2005 in
accordance with the fair value recognition provisions of
Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the company’s core business operations and facilitates comparisons to the company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.
F5 believes that presenting its non-GAAP measure of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the company’s core business and which management uses in its own evaluation of the company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the company provides investors this supplemental measure since, with reconciliation to GAAP, it may provide additional insight into the company’s operational performance and financial results.
Investor Relations
j.eldridge@f5.com
or
Public
Relations
a.moran@f5.com
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