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F5 Networks, Inc. Condensed Consolidated Balance Sheets (in thousands)

March 31, 2004 (unaudited) Assets Current assets Cash and cash equivalents ....................................................................................... Short-term investments ............................................................................................ Accounts receivable, net of allowances of $3,736 and $3,049................................. Inventories ............................................................................................................... Other current assets.................................................................................................. Total current assets .............................................................................................. Restricted cash ............................................................................................................. Property and equipment, net ........................................................................................ Long-term investments ................................................................................................ Goodwill ...................................................................................................................... Other assets, net ........................................................................................................... Total assets...........................................................................................................

$

$

September 30, 2003

22,162 $ 108,656 19,158 1,905 5,275 157,156

10,351 34,527 19,325 762 4,779 69,744

6,183 10,272 96,450 24,188 3,727 297,976 $

6,000 10,079 34,132 24,188 4,030 148,173

5,397 $ 13,678 24,502 43,577

3,714 13,148 19,147 36,009

Liabilities and Shareholders’ Equity Current liabilities Accounts payable..................................................................................................... Accrued liabilities.................................................................................................... Deferred revenue ..................................................................................................... Total current liabilities.........................................................................................

$

Other long-term liabilities............................................................................................

1,744

Deferred tax liability....................................................................................................

454

Total long-term liabilities ....................................................................................

2,198

1,584 151 1,735

Commitments and contingencies Shareholders’ equity Preferred stock, no par value; 10,000 shares authorized, no shares outstanding...... Common stock, no par value; 100,000 shares authorized 34,168 and 27,403 shares issued and outstanding ......................................................................................... Unearned compensation............................................................................................... Accumulated other comprehensive income ................................................................. Accumulated deficit..................................................................................................... Total shareholders’ equity ....................................................................................... Total liabilities and shareholders’ equity ................................................................

$

273,263 ― 647 (21,709) 252,201 297,976 $

― 141,709 (10) 195 (31,465) 110,429 148,173


F5 Networks, Inc. Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share amounts)

Three months ended March 31, 2004 Net revenues: Products ....................................................................... $ Services........................................................................ Total net revenues ................................................ Cost of net revenues: Products ....................................................................... Services........................................................................

29,720 10,927

Six months ended March 31,

2003

$

40,647

20,338 7,679

2004

$

28,017

6,799 2,626

4,203 2,275

56,096 20,632

2003

$

39,839 15,234

76,728

55,073

12,648 5,088

8,260 4,436

Total cost of net revenues ....................................

9,425

6,478

17,736

12,696

Gross profit ..................................................................

31,222

21,539

58,992

42,377

Operating expenses: Sales and marketing ..................................................... Research and development .......................................... General and administrative .......................................... Amortization of unearned compensation ..................... Total operating expenses......................................

15,920 5,900 3,855 __ 25,675

13,061 4,886 2,900 5 20,852

30,874 11,344 7,202 10 49,430

25,820 9,281 6,250 71 41,422

Income from operations ....................................................... Other income, net ................................................................ Income before income taxes ................................................ Provision for income taxes .................................................. Net income...................................................................

5,547 808 6,355 400 $ 5,955

687 312 999 184 815

9,562 992 10,554 798 9,756

955 774 1,729 394 1,335

Net income per share – basic .............................................. $ Weighted average shares – basic ......................................... Net income per share – diluted ............................................ $ Weighted average shares – diluted.......................................

$

0.18 33,768

$

0.16

$

36,946

$

0.03 26,164

$

0.03

$

27,494

$

0.31 31,953

$

0.28

$

35,074

0.05 26,022 0.05 27,230


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