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F5 Networks Announces Results For Second Quarter Of Fiscal 2012

Revenue up 5.3 percent from previous quarter
SEATTLE--(BUSINESS WIRE)-- For the second quarter of fiscal 2012, F5 Networks, Inc. (NASDAQ:FFIV) announced revenue of $339.6 million, up 5.3 percent from $322.4 million in the prior quarter and 22.4 percent from $277.6 million in the second quarter of fiscal 2011.

GAAP net income was $68.6 million ($0.86 per diluted share), compared to $66.5 million ($0.83 per diluted share) in the prior quarter and $55.6 million ($0.68 per diluted share) in the second quarter a year ago.

Excluding the impact of stock-based compensation, amortization of purchased intangible assets and acquisition-related charges and related tax effects, non-GAAP net income for the second quarter was $87.1 million ($1.09 per diluted share), compared to $82.2 million ($1.03 per diluted share) in the prior quarter and $71.5 million ($0.88 per diluted share) in the second quarter of last year.

A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.

John McAdam, F5 president and chief executive officer, said strong demand for VIPRION platforms, F5’s industry leading Virtual Clustered Multiprocessing technology (“vCMP”), and the full range of BIG-IP software modules contributed to solid gains in product revenue, which grew more than 18 percent year over year. Bookings growth was solid in APAC, especially in Japan, and sales growth in EMEA was in line with overall growth during the quarter. Solid growth in the Americas was driven by strong service provider sales.

“During the quarter we continued to see growing demand for both VIPRION 2400, our midrange chassis-based application delivery controller, and VIPRION 4400, the high end of our ADC product family,” McAdam said. “In early April, we introduced a new chassis, VIPRION 4480, with new blades that effectively double the performance of VIPRION 4400.”

“VIPRION 4480 is the highest performing ADC on the market. Like all of our VIPRION and BIG-IP products it is also an ICSA–certified network firewall, delivering twelve times the performance of the nearest competing product. In the second quarter we saw increasing demand for all of our security products, including our security modules, Application Security Manager (ASM) and Access Policy Manager (APM), and our EDGE Gateway appliance. As the number and complexity of security threats continues to grow, we anticipate that our integrated security solutions will be an increasingly important component of our revenue stream.”

During the quarter, F5 added approximately 190 employees worldwide, including 60 from Traffix Systems. Following the acquisition of Traffix Systems on February 22, 2012 and the repurchase of 404,106 shares of its outstanding common stock, the company ended the quarter with $1.03 billion in cash and investments.

For the current quarter, ending June 30, management has set a revenue goal of $350 million to $355 million with a GAAP earnings target of $0.88 to $0.90 per diluted share. Excluding the impact of stock-based compensation and amortization of purchased intangible assets and related tax effects, the company’s non-GAAP earnings target is $1.12 to $1.14 per diluted share.

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