F5 Announces Annual Results

SEATTLE -- F5 Networks, Inc. (NASDAQ: FFIV) today announced revenue of $145.6 million for the fourth quarter of fiscal 2007, up 10 percent from $132.4 million in the prior quarter and 30 percent from $111.7 million in the fourth quarter of fiscal 2006. Fourth quarter net income of $12.9 million ($0.15 per diluted share) included a one-time charge of $14 million ($0.16 per diluted share) stemming from the companys recent acquisition of Acopia Networks. Net income was $21.8 million ($0.26 per diluted share) in the third quarter of 2007 and $17.8 million ($0.21 per diluted share) in the fourth quarter a year ago. For fiscal 2007, revenue was $525.7 million, up 33 percent from $394.0 million in fiscal 2006. Net income for the year was $77.0 million ($0.90 per diluted share) compared to net income of $66.0 million ($0.80 per diluted share) in fiscal 2006.

F5 president and chief executive officer John McAdam said the company’s fourth consecutive year of strong revenue growth reflects the continuing strength of F5’s core business in the context of stepped-up organizational investments in fiscal 2007. “Excluding Acopia, our single biggest investment during the year, we added approximately 385 employees across the organization, the majority in sales and marketing, product development and service. We continue to believe that our investments in sales and marketing will have a significant impact on our revenue growth in the coming year and enable us to further expand our share of the growing application delivery networking market. Meanwhile, we are seeing returns on our investment in R&D in the delivery of market-expanding products like WANJet on TMOS, announced today, and in our progress toward the delivery of our next generation chassis platform code named Montreal by calendar year end. Equally important, our investments in our service business have enabled us to provide a growing array of services and to respond more quickly to customers’ needs. As a result, we believe F5 is well-positioned to extend its leadership in application delivery networking and to become a leader in the emerging file virtualization market through our newly acquired data solutions business.”

F5 Networks Inc.