F5 Revenues Grow

SEATTLE -- For the second quarterof fiscal 2007, F5 Networks (Nasdaq:FFIV) announced revenue of $127.6million, up 6 percent from $120.0 million in the prior quarter and 36percent from $94.1 million in the second quarter of fiscal 2006. Netincome was $20.0 million ($0.47 per diluted share), compared to $22.4million ($0.53 per diluted share) in the prior quarter, which includeda one-time tax benefit of $0.04 per share. Net income was $16.1million ($0.39 per diluted share) in the second quarter a year ago.

The company's solid revenue gains reflect the continuing strengthof its core application delivery network business, which grew 8percent during the quarter and accounted for 92 percent of totalrevenue. John McAdam, F5 president and chief executive officer, saidthe strength of the company's core business relative to its WANoptimization and security offerings was no surprise and furthervalidated the company's plans to port WANJet and FirePass to TMOS andintegrate their functionality into its application delivery networkingsolutions. TMOS-based versions of both products are scheduled fordelivery in late summer.

"In the meantime, the rich functionality of BIG-IP's TMOS-basedsolution set, coupled with the flexibility of iRules and thehigh-performance of our integrated hardware platforms, is continuingto open new market opportunities," McAdam said. "Along with growingdemand in large enterprises, changes in the technology landscape aredriving telecommunications companies and internet service providers tolook for new and better ways to manage the complex array of data,information and services they are attempting to provide theircustomers. From the perspective of both functionality and performance,our family of BIG-IP products offers these organizations the widestarray of fully-integrated solutions to meet their needs, and we arecontinuing to invest in all areas of our business to take advantage ofthese opportunities."

F5 Networks Inc. (Nasdaq: FFIV)