Description

F5 Networks Inc. is a provider of integrated Internet traffic management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications. For the six months ended 3/31/00, revenues totaled $42.8 million, up from $6.5 million. Net income totaled $8.4 million vs. a loss of $5.2 million. Revenues reflect an increase in products sold and an increased installed base of products. Earnings reflect a higher gross margin.

The stock crashed from $160 to $30 in couple months. FMR fund sold 90% of their holding which I think contributed to the big decline. FMR may know something I don't know but I think this company has great products and good growth. Short interest in around 3M shares, 33 of the float.

FFIV is clearly undervalued comparing last quarter with competitors:
1) REVENUES:

ATON $28 Million, Market Cap $2.7 Billion
ARPT $9.5Million, Market Cap $4.7 Billion
FFIV $23 Million, Market Cap $0.9 Billioni

2)EARNINGS :

ATON... No earnings.....just LOSSES
ARPT... No earnings.....just LOSSES
FFIV... EARNINGS of over $4 Million

In todays market, its good for a company to have earnings....FFIV has them, and not only that but it has a great P/E for a young and fast growing internet company is such a HOT area......it has great upside with limited downside!

3) PRODUCTS :
No question in my mind....FFIV products are superior! n just the last week or so, these three companies opted to use FFIV technology. AKAMAI, CacheFlow, and NetObjects.

It is very significant in my view since these companies they are right on the leading edge of internet technology and its deployment by large business sites, and are recognized as the leaders in their respective areas! They could have chosen any products ...they chose FFIV!

AKAMAI:
http://rd.yahoo.com/finance/external/Cnet/*http://www.news.com/News/Item/0,4,84- 2011293,00.html?pt.yfin.cat_fin.txt.ne
http://biz.yahoo.com/bw/000517/rpt_ma_aka.html
The relationship will allow customers of both companies' technology--about 300 corporate and Web site customers--to access Web content at a faster rate, according to executives.

CACHEFLOW:
http://biz.yahoo.com/bw/000531/ca_cachefl.html
CacheFlow is a leading provider of Internet caching appliances that accelerate and manage the flow of information over the Internet.
Together, CacheFlow and F5 products enable service providers and enterprises to deploy large-scale content distribution networks, moving content closer to the target user. CacheFlow's Internet caching appliances, combined with F5's BIG-IP? 3-DNS?and GLOBAL-SITE(TM) Controllers, form a comprehensive infrastructure for content management and delivery

NETOBJECTS
http://biz.yahoo.com/bw/000530/wa_f5_netw.html
NetObjects, Inc., an IBM affiliate is a leading provider of e-business solutions and services.
announced a strategic relationship to provide an end-to-end solution for e-Businesses that design, develop, manage, and eploy mission-critical Web content and applications on a global scale.

Catalyst

good earning, short covering