News January 25, 16:18 Eastern Time
F5 Networks Announces Record First Quarter Results
SEATTLE, Jan 25, 2000 (BUSINESS WIRE) -- F5 Networks, Inc.
(Nasdaq: FFIV), a leading provider of integrated Internet traffic and
content management solutions, today announced financial results for its
first quarter of fiscal 2000, which ended December 31, 1999.
Revenue for the first quarter of fiscal 2000 increased to $19.2 million
from $2.7 million in the first quarter of fiscal 1999, representing an
increase of 611%. Net income for the first quarter of fiscal 2000 was
$4.2 million, or $0.18 per diluted share compared to a net loss of $2.2
million, or $(0.36) per diluted share for the comparable period one
year ago.
First quarter highlights include:
-- F5 Networks announced an expanded alliance agreement with Exodus
Communications (Nasdaq: EXDS). Under this agreement, F5 Networks
will provide fully managed load balancing services to customers
located in the Exodus global network of Internet Data Centers.
-- At the end of the first quarter, F5 Networks had 1,175 customers,
up from 750 customers at the end of the previous quarter.
-- A strategic agreement was signed with 3Com Corporation
(Nasdaq: COMS) which will provide F5's full suite of Internet
Traffic Management products to 3Com's enterprise customers.
-- F5 Networks received the prestigious "Editor's Choice" award for
its 3DNS(R) Controller from Network Computing Magazine. The 3DNS
Controller is a high availability, intelligent load balancing
solution for geographically distributed Internet sites and data
centers.
-- At the Fall Internet World '99, F5 Networks received the "Best of
Show" award for its global/SITE(TM) Controller, a operating
system-independent appliance that manages the publishing,
distribution, synchronization and replication of file-based
content and applications to local and geographically distributed
Internet sites.
"We are very pleased with our strong sales growth and profitability," said Jeffrey S. Hussey, Chairman, President and Chief
Executive Officer of F5 Networks. "The sustained worldwide growth of business-to-business Internet communications and
e-commerce continues to drive our market. To meet our customers' rapidly evolving requirements, we continue to develop the F5
product portfolio and enhance the performance of our products. We also continue to broaden our strategic relationships to
expand our distribution channels and provide best-of-breed Internet traffic and content management products and services." A
live Internet broadcast of F5's first quarter conference call (1:30 PM Pacific/4:30 PM Eastern) will be available today at
www.f5.com in the "Investor Relations" section.
About F5 Networks, Inc.
F5 Networks is a leader in Internet Traffic and Content Management products. The Company's integrated suite of
high-performance products automatically and intelligently manage Internet traffic and content to improve the availability and
performance of mission-critical Internet servers and applications. F5 Networks helps companies avoid the risk of being
burdened with ill-performing networks that do not meet end user expectations, while enabling network administrators to boost
the control and predictability of their infrastructure. F5 Networks' products are designed to provide a new level of fault
tolerance by shielding users from system failure; optimizing response times to user requests and data flow; and
cost-effectively managing an organization's Internet infrastructure. The company is headquartered in Seattle, Washington, and
has offices in Atlanta, Boston, Chicago, Dallas, Columbus, Los Angeles, New York, San Francisco, Toronto, Washington, D.C.,
Australia, Hong Kong, Japan, The Netherlands, Singapore, Sweden and the United Kingdom. F5 Networks is located on the web at
www.f5.com. Statements in this press release concerning future activities under F5's strategic alliance agreements, continued
development of F5's product portfolio and future enhancements to F5 products, continued growth in the market for Internet
traffic and content management solutions, and other statements which 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 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, among others: the
company's limited operating history; variability of the company's operating results; market acceptance of the company's
Internet traffic and content management products; the company's timely development of new products and features; the company's
ability to manage its growth; the company's ability to maintain and develop distribution relationships; competition in the
Internet traffic and content market; the company's ability to expand in the international markets; unpredictability of the
company's sales cycle and other risk factors referenced in the company's public filings with the Securities and Exchange
Commission (SEC). In particular, see the section entitled "Risk Factors" in the company's annual report on Form 10-K filed
with the SEC on December 28, 1999.
F5 Networks, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended
December 31,
------------------------
1999 1998
--------- ---------
(unaudited)
Net revenues:
Products $ 16,282 $ 2,282
Services 2,891 413
--------- ---------
Total net revenue 19,173 2,695
--------- ---------
Cost of net revenues:
Products 4,624 624
Services 1,059 196
--------- ---------
Total cost of net revenues 5,683 820
--------- ---------
Gross profit 13,490 1,875
--------- ---------
Operating expenses:
Sales and marketing 5,742 2,216
Research and development 2,225 1,021
General and administrative 1,478 525
Amortization of unearned
compensation 543 368
--------- ---------
Total operating expenses 9,988 4,130
--------- ---------
Income (loss) from operations 3,502 (2,255)
Interest income, net 741 58
========= ========= Net income (loss) $ 4,243 $ (2,197)
========= =========Net income (loss) per share - basic $ 0.21 $ (0.36)
========= =========Weighted average shares - basic 20,427 6,047
========= =========Net income (loss) per share -
diluted $ 0.18 $ (0.36)
========= ==========Weighted average shares - diluted 23,061 6,047
========= ==========
F5 Networks, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, September 30,
1999 1999
--------- ---------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 59,983 $ 24,797
Restricted cash 3,049 3,013
Accounts receivable, net of
allowances of $906 and $826 15,965 10,353
Inventories 915 618
Other current assets 1,171 981
--------- ---------
Total current assets 81,083 39,762
--------- ---------
Property and equipment, net 3,803 2,834
Other assets, net 294 250
--------- ---------
Total assets $ 85,180 $ 42,846
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,510 $ 2,700
Accrued liabilities 3,670 3,808
Deferred revenue 7,641 4,365
--------- ---------
Total current liabilities 14,821 10,873
--------- ---------
Commitments
Shareholders' equity:
Common stock, no par value;
100,000 shares authorized,
21,022 and 18,161 shares
issued and outstanding 79,305 45,760
Note receivable from shareholder (750) (750)
Accumulated other comprehensive
income (loss) 52 (3)
Unearned compensation (2,689) (3,232)
Accumulated deficit (5,559) (9,802)
--------- ---------
Total shareholders' equity 70,359 31,973
--------- ---------
Total liabilities and
shareholders' equity $ 85,180 $ 42,846
========= =========
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
F5 Networks Announces Record First Quarter Results
SEATTLE, Jan 25, 2000 (BUSINESS WIRE) -- F5 Networks, Inc.
(Nasdaq: FFIV), a leading provider of integrated Internet traffic and
content management solutions, today announced financial results for its
first quarter of fiscal 2000, which ended December 31, 1999.
Revenue for the first quarter of fiscal 2000 increased to $19.2 million
from $2.7 million in the first quarter of fiscal 1999, representing an
increase of 611%. Net income for the first quarter of fiscal 2000 was
$4.2 million, or $0.18 per diluted share compared to a net loss of $2.2
million, or $(0.36) per diluted share for the comparable period one
year ago.
First quarter highlights include:
-- F5 Networks announced an expanded alliance agreement with Exodus
Communications (Nasdaq: EXDS). Under this agreement, F5 Networks
will provide fully managed load balancing services to customers
located in the Exodus global network of Internet Data Centers.
-- At the end of the first quarter, F5 Networks had 1,175 customers,
up from 750 customers at the end of the previous quarter.
-- A strategic agreement was signed with 3Com Corporation
(Nasdaq: COMS) which will provide F5's full suite of Internet
Traffic Management products to 3Com's enterprise customers.
-- F5 Networks received the prestigious "Editor's Choice" award for
its 3DNS(R) Controller from Network Computing Magazine. The 3DNS
Controller is a high availability, intelligent load balancing
solution for geographically distributed Internet sites and data
centers.
-- At the Fall Internet World '99, F5 Networks received the "Best of
Show" award for its global/SITE(TM) Controller, a operating
system-independent appliance that manages the publishing,
distribution, synchronization and replication of file-based
content and applications to local and geographically distributed
Internet sites.
"We are very pleased with our strong sales growth and profitability," said Jeffrey S. Hussey, Chairman, President and Chief
Executive Officer of F5 Networks. "The sustained worldwide growth of business-to-business Internet communications and
e-commerce continues to drive our market. To meet our customers' rapidly evolving requirements, we continue to develop the F5
product portfolio and enhance the performance of our products. We also continue to broaden our strategic relationships to
expand our distribution channels and provide best-of-breed Internet traffic and content management products and services." A
live Internet broadcast of F5's first quarter conference call (1:30 PM Pacific/4:30 PM Eastern) will be available today at
www.f5.com in the "Investor Relations" section.
About F5 Networks, Inc.
F5 Networks is a leader in Internet Traffic and Content Management products. The Company's integrated suite of
high-performance products automatically and intelligently manage Internet traffic and content to improve the availability and
performance of mission-critical Internet servers and applications. F5 Networks helps companies avoid the risk of being
burdened with ill-performing networks that do not meet end user expectations, while enabling network administrators to boost
the control and predictability of their infrastructure. F5 Networks' products are designed to provide a new level of fault
tolerance by shielding users from system failure; optimizing response times to user requests and data flow; and
cost-effectively managing an organization's Internet infrastructure. The company is headquartered in Seattle, Washington, and
has offices in Atlanta, Boston, Chicago, Dallas, Columbus, Los Angeles, New York, San Francisco, Toronto, Washington, D.C.,
Australia, Hong Kong, Japan, The Netherlands, Singapore, Sweden and the United Kingdom. F5 Networks is located on the web at
www.f5.com. Statements in this press release concerning future activities under F5's strategic alliance agreements, continued
development of F5's product portfolio and future enhancements to F5 products, continued growth in the market for Internet
traffic and content management solutions, and other statements which 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 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, among others: the
company's limited operating history; variability of the company's operating results; market acceptance of the company's
Internet traffic and content management products; the company's timely development of new products and features; the company's
ability to manage its growth; the company's ability to maintain and develop distribution relationships; competition in the
Internet traffic and content market; the company's ability to expand in the international markets; unpredictability of the
company's sales cycle and other risk factors referenced in the company's public filings with the Securities and Exchange
Commission (SEC). In particular, see the section entitled "Risk Factors" in the company's annual report on Form 10-K filed
with the SEC on December 28, 1999.
F5 Networks, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended
December 31,
------------------------
1999 1998
--------- ---------
(unaudited)
Net revenues:
Products $ 16,282 $ 2,282
Services 2,891 413
--------- ---------
Total net revenue 19,173 2,695
--------- ---------
Cost of net revenues:
Products 4,624 624
Services 1,059 196
--------- ---------
Total cost of net revenues 5,683 820
--------- ---------
Gross profit 13,490 1,875
--------- ---------
Operating expenses:
Sales and marketing 5,742 2,216
Research and development 2,225 1,021
General and administrative 1,478 525
Amortization of unearned
compensation 543 368
--------- ---------
Total operating expenses 9,988 4,130
--------- ---------
Income (loss) from operations 3,502 (2,255)
Interest income, net 741 58
========= ========= Net income (loss) $ 4,243 $ (2,197)
========= =========Net income (loss) per share - basic $ 0.21 $ (0.36)
========= =========Weighted average shares - basic 20,427 6,047
========= =========Net income (loss) per share -
diluted $ 0.18 $ (0.36)
========= ==========Weighted average shares - diluted 23,061 6,047
========= ==========
F5 Networks, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, September 30,
1999 1999
--------- ---------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 59,983 $ 24,797
Restricted cash 3,049 3,013
Accounts receivable, net of
allowances of $906 and $826 15,965 10,353
Inventories 915 618
Other current assets 1,171 981
--------- ---------
Total current assets 81,083 39,762
--------- ---------
Property and equipment, net 3,803 2,834
Other assets, net 294 250
--------- ---------
Total assets $ 85,180 $ 42,846
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,510 $ 2,700
Accrued liabilities 3,670 3,808
Deferred revenue 7,641 4,365
--------- ---------
Total current liabilities 14,821 10,873
--------- ---------
Commitments
Shareholders' equity:
Common stock, no par value;
100,000 shares authorized,
21,022 and 18,161 shares
issued and outstanding 79,305 45,760
Note receivable from shareholder (750) (750)
Accumulated other comprehensive
income (loss) 52 (3)
Unearned compensation (2,689) (3,232)
Accumulated deficit (5,559) (9,802)
--------- ---------
Total shareholders' equity 70,359 31,973
--------- ---------
Total liabilities and
shareholders' equity $ 85,180 $ 42,846
========= =========
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
