F5 Networks, Inc. Consolidated Balance Sheets (unaudited, in thousands)
June 30, 2005 Assets Current assets Cash and cash equivalents........................................................................................ Short-term investments............................................................................................. Restricted cash ......................................................................................................... Accounts receivable, net of allowances of $3,060 and $3,161 ................................ Inventories................................................................................................................ Deferred tax assets ................................................................................................... Other current assets .................................................................................................. Total current assets...............................................................................................
$
Restricted cash ............................................................................................................. Property and equipment, net......................................................................................... Long-term investments................................................................................................. Deferred tax assets ....................................................................................................... Goodwill ...................................................................................................................... Other assets, net ........................................................................................................... Total assets ...........................................................................................................
$
September 30, 2004
11,587 $ 196,530 2,400 37,749 2,288 3,233 9,744 263,531
24,901 115,600 ― 22,665 1,696 4,494 5,776 175,132
3,875 15,563 120,962 42,592 50,067 8,856 505,446 $
6,243 11,954 81,792 26,886 50,067 8,279 360,353
6,201 $ 19,290 36,905 62,396
4,840 17,668 28,064 50,572
Liabilities and Shareholders’ Equity Current liabilities Accounts payable ................................................................................................. Accrued liabilities ................................................................................................ Deferred revenue .................................................................................................. Total current liabilities .....................................................................................
$
Long-term liabilities.....................................................................................................
2,701
2,136
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 38,387 and 34,772 shares issued and outstanding............................................................................... Accumulated other comprehensive loss ....................................................................... Retained earnings ......................................................................................................... Total shareholders’ equity ................................................................................... Total liabilities and shareholders’ equity .........................................................
―
$
403,641 (862) 37,570 440,349 505,446 $
― 306,655 (498) 1,488 307,645 360,353
F5 Networks, Inc. Consolidated Income Statements (unaudited, in thousands, except per share data)
Net revenues Products ............................................................... $ Services....................................................................................
Three Months Ended June 30,
Nine Months Ended June 30,
2005
2005
57,112 15,952
Total .................................................................................
73,064
Cost of net revenues Products ................................................................................... Services....................................................................................
12,751 4,306
2004
$
32,537 11,706
$
44,243
7,267 2,832
156,836 43,967
2004
$
88,633 32,338
200,803
120,971
35,099 11,600
19,915 7,920
Total .................................................................................
17,057
10,099
46,699
27,835
Gross profit ..............................................................................
56,007
34,144
154,104
93,136
Operating expenses Sales and marketing ................................................................. Research and development....................................................... General and administrative....................................................... Amortization of unearned compensation.................................. Total ................................................................................
23,207 7,547 5,833 __ 36,587
16,907 6,253 4,069 __ 27,229
63,732 22,310 16,693 __ 102,735
47,781 17,597 11,271 10 76,659
Income from operations ................................................................... Other income, net............................................................................. Income before income taxes............................................................. Provision for income taxes............................................................... Net income ............................................................................... $
19,420 2,123 21,543 7,566 13,977
6,915 848 7,763 347 7,416
51,369 5,151 56,520 20,438 36,082
16,477 1,840 18,317 1,145 17,172
$
$
$
Net income per share – basic .......................................................... $ Weighted average shares – basic......................................................
0.37 37,918
$
0.22 34,382
$
0.98 36,795
$
0.52 32,760
Net income per share – diluted......................................................... $
0.35
$
0.20
$
0.93
$
0.48
Weighted average shares – diluted...................................................
39,418
36,969
35,703
38,739
Reconciliation to pro forma results Net income as reported ................................................................. … Provision for income taxes as reported......................................... Income before income taxes............................................................. Pro forma 37% provision for income taxes.................................. Pro forma net income.......................................................................
$
Pro forma net income per share – diluted......................................... Pro forma weighted average shares – diluted...................................
$
7,416 347 7,763 2,872 4,891
$
17,172 1,145 18,317 6,777 11,540
$
0.13
$
0.32
36,969
$
35,703