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

June 30, 2004 (unaudited) Assets Current assets Cash and cash equivalents ....................................................................................... Short-term investments ............................................................................................ Accounts receivable, net of allowances of $3,286 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

22,165 $ 90,265 19,789 1,868 4,500 138,587

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

6,258 12,007 98,058 48,998 9,003 312,911 $

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

6,348 $ 16,107 26,321 48,776

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............................................................................................

1,812

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

605

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

2,417

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 34,509 and 27,403 shares issued and outstanding ......................................................................................... Unearned compensation............................................................................................... Accumulated other comprehensive income ................................................................. Accumulated deficit..................................................................................................... Total shareholders’ equity ....................................................................................... Total liabilities and shareholders’ equity ................................................................

$

277,009 ― (998) (14,293) 261,718 312,911 $

― 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 June 30, 2004 2003

Nine months ended June 30, 2004 2003

Net revenues: Product ..............................................................$ Service............................................................... Total net revenues......................................

32,537 11,706 44,243

Cost of net revenues: Product .............................................................. Service............................................................... Total cost of net revenues .......................... Gross profit........................................................

7,267 2,832 10,099 34,144

4,491 2,290 6,781 22,408

19,915 7,920 27,835 93,136

12,751 6,726 19,477 64,785

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

16,907 6,253 4,069 27,229

13,593 4,810 2,800 6 21,209

47,781 17,597 11,271 10 76,659

39,413 14,091 9,050 77 62,631

1,199 352 1,551 152 1,399

16,477 1,840 18,317 1,145 $ 17,172

$

2,154 1,126 3,280 546 2,734

$

$

Income from operations............................................. Other income, net ...................................................... Income before income taxes...................................... Provision for income taxes ........................................ Net income ........................................................$ Net income per share – basic.....................................$ Weighted average shares – basic ............................... Net income per share – diluted .................................$ Weighted average shares – diluted ............................

6,915 848 7,763 347 7,416 0.22 34,382 0.20 36,969

$

$ $ $

21,310 7,879 29,189

0.05 26,638 0.05 28,467

$

$

88,633 32,338 120,971

0.52 32,760 0.48 35,703

$

$

61,149 23,113 84,262

0.10 26,227 0.10 27,525


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