F5 Announces Q3 Results

SEATTLE -- For the third quarter of fiscal 2007, ended June 30, F5 Networks announced revenue of $132.4 million, up 4 percent from $127.6 million in the prior quarter and 32 percent from $100.1 million in the third quarter of fiscal 2006. Net income was $21.8 million ($0.51 per diluted share), compared to $20.0 million ($0.47 per diluted share) in the prior quarter and $17.0 million ($0.41 per diluted share) in the third quarter a year ago.

Representing the companys 18th consecutive quarter of sequential revenue growth, results were within the company’s guided revenue range and above its published earnings target. According to F5 president and chief executive officer, John McAdam, bookings outpaced revenue during the quarter, resulting in a positive book-to-bill at quarter-end.

In addition to solid revenue and earnings growth, the company continued to strengthen its balance sheet during the third quarter. Deferred revenue, principally from service maintenance contracts, grew 11% compared to the prior period to $83.2 million. Cash flow from operations was $38.2 million, and the company ended the quarter with $633 million in cash and investments.

Commenting on the current quarter, McAdam said he believes F5 is positioned for a strong finish to fiscal 2007. “For a variety of reasons, including seasonal strength in North America, Japan and the U.S. Federal market, Q4 is typically our strongest quarter. We also expect to begin seeing a significant return on the investments we made in expanding our sales organization during the first half of the year.”

F5 Networks Inc.