| 2008 | 2009 | ||||||
| Price: | 22.06 | EPS | |||||
| Shares Out. (in M): | 0 | P/E | |||||
| Market Cap (in $M): | 1,770 | P/FCF | |||||
| Net Debt (in $M): | 0 | EBIT | 0 | 0 | |||
| TEV (in $M): | 0 | TEV/EBIT | |||||
Sign up for free guest access to view investment idea with a 45 days delay.
THESIS
F5 has seen decelerating growth over the past few quarters but is starting an exciting product cycle which will accelerate growth and lead to multiple expansion and higher numbers. There is also decent margin expansion potential. The product cycle consists of (i) a new high-end application delivery controller (ADC) known as VIPRION that is better than anything offered previously (both by F5 and competitors) (ii) a product refresh on their low-end ADCs which should stabilize or lead to growth in what has been their weakest product (no update to the low-end in 4 years), and (iii) the ramp up of a storage virtualization business (Acopia) they bought (2007) that will grow at approximately 50%+ in 09. In addition to great product cycle story, JNPR or CSCO might be interested in acquiring F5. There is strong strategic rational with JNPR.
F5 upside is large if they execute on their upcoming product cycle. F5 EPS in CY09 can increase from $1.65 to $1.90+. With an acceleration in top line growth, F5 can trade at 20x (or higher given competitive position / growth opportunity) and +$35 is achievable over the next 6-12 months. I estimate downside to be $18-19 (12x downside CY09EPS of $1.50) but I view this scenario as unlikely. The management team is considered to be 1 of the best execution teams in IT over the past 5 years.
SUMMARY BUSINESS DESCRIPTION
F5 products are application delivery controllers (ADCs) which provide efficient, secure and accelerated delivery of applications and data access (traffic mgmt products that simplify the way people access servers and local area networks). Specifically, ADCs perform application acceleration and handle load balancing between servers (direct traffic to server 1, 2, etc).
F5 is well-positioned to capitalize on 3 secular trends: (i) increased adoption of web-based apps (cloud computing, i.e. access applications from the internet) (ii) server virtualization (partnership with VMware) and (iii) the build out of new and consolidation of existing data centers. Cloud computing will drive internet/network traffic and increase ADC demand. Data centers require high-end ADCs which are located between the firewall and application servers in the data center.
F5 products run on a proprietary software platform called TMOS and customized hardware which enables F5 to layer in additional products into the F5 installed base of products. All competitor solutions are either hardware or software based and are not as flexible as F5 products. F5 high and mid-end products are significantly better than others.
DETAILS REGARDING THE THREE KEY REASONS WHY WE LIKE F5
F5 has recently launched the most advanced ADC (VIPRION) which offers the highest throughput, encryption and compression vs. other products. The other key competitive distinction is that it is the first high-end product of its kind to facilitate user-controlled capacity additions as necessary. No competitor (Citrix/CSCO) has come close to these capabilities (CSCO CEO admitted he missed the product cycle). F5 has been working on this for 7 years and started selling it recently. The telecoms, dot coms and enterprises have displayed strong interest. MSFT bought $5mm already (F5 revenue is $650mm, can move needle). F5 believes that many potential VIPRION customers are not using F5 products or ADCs generally so both the market and F5 share will increase. I believe over the next year, this product can exceed expectations.
20%-25% of F5 revenues come from entry level ADCs. This segment has been declining recently (although offset by mid/high end) as F5 has not refreshed the product line in 4 years. Over the next month(s) F5 will be launching a product refresh that offers more advanced capabilities for entry level products. The advanced capabilities are some of the software modules available in the mid/high end ADCs (web accelerating, encryption, application security) which will make F5 entry level ADCs superior to CSCO/Citrix. Stabilization or growth in this segment will also make the strong growth in mid-high end ADCs more visible. F5 believes the new functionality of these products will encourage the purchase of ADCs for applications that are currently not using an application delivery network device.
F5 acquired Acopia (called ARX product) which enables virtualization of network attached storage (NAS) devices. It does the same thing ADCs do for servers and has same customers –ARX sits in front of storage devices and facilitates data migration and tiering (which frees up storage capacity). The secular trend of unstructured file growth will increase the demand for ARX. Management believes the ARX could be as big the core ADC product line ($400mm).
|
FFIV Stock
|
|
$22.06
|
|
Current Statistics
|
|
Current Multiples
|
|
|||
|
FD Shares
|
|
80.3
|
|
08E Sales
|
|
$668
|
|
08E EV/Sales
|
|
2.0x
|
|
Market Cap
|
|
$1,770
|
|
09E Sales
|
|
716
|
|
09E EV/Sales
|
|
1.8x
|
|
Cash
|
|
451
|
|
|
|
|
|
|
|
|
|
Enterprise Value
|
|
$1,319
|
|
08E EBITDA
|
|
190
|
|
08E EV/EBITDA
|
|
6.9x
|
|
|
|
|
|
09E EBITDA
|
|
225
|
|
09E EV/EBITDA
|
|
5.9x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
08E EPS
|
|
$1.54
|
|
08E P/E
|
|
14.3x
|
|
|
|
|
|
09E EPS
|
|
$1.64
|
|
09E P/E
|
|
13.5x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Range - P/E Analysis
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
09 EPS Expectations
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Downside
|
|
Current
|
|
Upside
|
|
|
|
|
|
09E P/E
|
|
$1.50
|
|
$1.65
|
|
$1.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.0x
|
|
$18.00
|
|
$19.80
|
|
$22.80
|
|
|
|
|
|
13.0x
|
|
19.50
|
|
21.45
|
|
24.70
|
|
|
|
|
|
14.0x
|
|
21.00
|
|
23.10
|
|
26.60
|
|
|
|
|
|
15.0x
|
|
22.50
|
|
24.75
|
|
28.50
|
|
|
|
|
|
16.0x
|
|
24.00
|
|
26.40
|
|
30.40
|
|
|
|
|
|
17.0x
|
|
25.50
|
|
28.05
|
|
32.30
|
|
|
|
|
|
18.0x
|
|
27.00
|
|
29.70
|
|
34.20
|
|
|
|
|
|
19.0x
|
|
28.50
|
|
31.35
|
|
36.10
|
|
|
|
|
|
20.0x
|
|
30.00
|
|
33.00
|
|
38.00
|
|
|
|
|
|
FFIV
|
|
|
Q1FY07
|
Q2FY07
|
Q3FY07
|
Q4FY07
|
Q1FY08
|
Q2FY08
|
Q3FY08
|
Q4FY08
|
|
|
Q1FY09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/06A
|
3/31/07A
|
6/31/07A
|
9/31/07A
|
12/31/07A
|
3/31/08A
|
6/31/08A
|
9/31/08
|
|
|
12/31/08E
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Product (Ex-VIPRION)
|
80,262
|
85,226
|
86,751
|
93,682
|
90,555
|
90,148
|
92,236
|
92,040
|
|
|
90,740
|
||
|
Sequential % Chg
|
|
6.8%
|
6.2%
|
1.8%
|
8.0%
|
(3.3%)
|
(0.4%)
|
2.3%
|
(0.2%)
|
|
|
(1.4%)
|
|
|
Y-o-Y % Chg
|
|
|
|
|
|
|
|
|
|
(1.8%)
|
|
|
0.2%
|
|
VIPRION
|
|
|
0
|
0
|
0
|
0
|
0
|
1,500
|
5,000
|
8,000
|
|
|
10,000
|
|
Sequential % Chg
|
|
|
|
|
|
|
|
233.3%
|
60.0%
|
|
|
25.0%
|
|
|
Fire Pass
|
|
|
6,400
|
6,900
|
7,200
|
6,900
|
7,100
|
7,500
|
7,500
|
6,300
|
|
|
6,000
|
|
Sequential % Chg
|
|
3.2%
|
7.8%
|
4.3%
|
(4.2%)
|
2.9%
|
5.6%
|
0.0%
|
(16.0%)
|
|
|
(4.8%)
|
|
|
Traffic Shield
|
|
|
3,000
|
2,100
|
1,700
|
2,600
|
2,650
|
2,700
|
2,750
|
2,750
|
|
|
2,750
|
|
Sequential % Chg
|
|
20.0%
|
(30.0%)
|
(19.0%)
|
52.9%
|
1.9%
|
1.9%
|
1.9%
|
0.0%
|
|
|
0.0%
|
|
|
Swan Labs
|
|
|
2,400
|
1,900
|
2,100
|
2,200
|
2,200
|
2,200
|
2,200
|
2,000
|
|
|
2,000
|
|
Sequential % Chg
|
|
41.2%
|
(20.8%)
|
10.5%
|
4.8%
|
0.0%
|
0.0%
|
0.0%
|
(9.1%)
|
|
|
0.0%
|
|
|
Acopia
|
|
|
0
|
0
|
0
|
1,600
|
7,700
|
8,100
|
5,100
|
4,700
|
|
|
4,300
|
|
Sequential % Chg
|
|
|
|
|
|
381.3%
|
5.2%
|
(37.0%)
|
-7.8%
|
|
|
-8.5%
|
|
|
Product Revenue
|
|
92,062
|
96,126
|
97,751
|
106,982
|
110,205
|
112,148
|
114,786
|
115,790
|
|
|
115,790
|
|
|
Sequential % Chg
|
|
6.7%
|
4.4%
|
1.7%
|
9.4%
|
3.0%
|
1.8%
|
2.4%
|
2.8%
|
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
27,968
|
31,479
|
34,674
|
38,625
|
43,979
|
46,993
|
50,799
|
55,473
|
|
|
56,305
|
|
|
Sequential % Chg
|
|
10.1%
|
12.6%
|
10.1%
|
11.4%
|
13.9%
|
6.9%
|
8.1%
|
9.2%
|
|
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
|
120,030
|
127,605
|
132,425
|
145,607
|
154,184
|
159,141
|
165,585
|
171,263
|
|
|
172,095
|
|
Sequential % Chg
|
|
7.4%
|
6.3%
|
3.8%
|
10.0%
|
5.9%
|
3.2%
|
4.0%
|
3.4%
|
|
|
0.5%
|
|
|
Y-o-Y % Chg
|
|
|
36.3%
|
35.6%
|
32.3%
|
30.3%
|
28.5%
|
24.7%
|
25.0%
|
17.6%
|
|
|
11.6%
|
END MARKET EXPSOURE DOES INCLUDE FINANCIAL SERVICES
|
12/31/06A |
3/31/07A |
6/31/07A |
9/31/07A |
12/31/07A |
3/31/08A |
6/31/08 |
9/31/08 |
|||
|
127,605 |
132,425 |
132,425 |
145,607 |
154,184 |
159,141 |
165,585 |
171,263 |
|||
|
End Market Mix % |
||||||||||
|
Service Provider |
20.0% |
23.0% |
22.0% |
21.0% |
23.0% |
19.0% |
21.0% |
23.0% |
||
|
Technology |
18.0% |
19.0% |
19.0% |
21.0% |
18.0% |
20.0% |
22.0% |
22.0% |
||
|
Financial Services |
20.0% |
19.0% |
19.0% |
17.0% |
23.0% |
25.0% |
20.0% |
16.0% |
||
|
U.S. Federal |
6.0% |
6.0% |
6.0% |
7.0% |
3.0% |
2.7% |
4.0% |
8.0% |
||
|
Non-Fed Government |
6.0% |
4.0% |
5.0% |
5.0% |
7.0% |
4.3% |
5.0% |
4.0% |
||
|
Other |
30.0% |
29.0% |
29.0% |
29.0% |
26.0% |
29.0% |
28.0% |
27.0% |
||
|
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
||
|
End Market Revenues |
||||||||||
|
Service Provider |
25,521 |
30,458 |
29,134 |
30,577 |
35,462 |
30,237 |
34,773 |
39,390 |
||
|
Technology |
22,969 |
25,161 |
25,161 |
30,577 |
27,753 |
31,828 |
36,429 |
37,678 |
||
|
Financial Services |
25,521 |
25,161 |
25,161 |
24,753 |
35,462 |
39,785 |
33,117 |
27,402 |
||
|
U.S. Federal |
7,656 |
7,946 |
7,946 |
10,192 |
4,626 |
4,297 |
6,623 |
13,701 |
||
|
Non-Fed Government |
7,656 |
5,297 |
6,621 |
7,280 |
10,793 |
6,843 |
8,279 |
6,851 |
||
|
Other |
38,282 |
38,403 |
38,403 |
42,226 |
40,088 |
46,151 |
46,364 |
46,241 |
||
|
Total |
127,605 |
132,425 |
132,425 |
145,607 |
154,184 |
159,141 |
165,585 |
171,263 |
||
|
Sequential Growth % |
||||||||||
|
Service Provider |
19.3% |
(4.3%) |
5.0% |
16.0% |
(14.7%) |
15.0% |
13.3% |
|||
|
Technology |
9.5% |
0.0% |
21.5% |
(9.2%) |
14.7% |
14.5% |
3.4% |
|||
|
Financial Services |
(1.4%) |
0.0% |
(1.6%) |
43.3% |
12.2% |
(16.8%) |
(17.3%) |
|||
|
U.S. Federal |
3.8% |
0.0% |
28.3% |
(54.6%) |
(7.1%) |
54.1% |
106.9% |
|||
|
Non-Fed Government |
(30.8%) |
25.0% |
10.0% |
48.2% |
(36.6%) |
21.0% |
(17.3%) |
|||
|
Other |
0.3% |
0.0% |
10.0% |
(5.1%) |
15.1% |
0.5% |
(0.3%) |
|||
|
Total |
3.8% |
0.0% |
10.0% |
5.9% |
3.2% |
4.0% |
3.4% |
EXPOSURE TO WEAKNESS IN JAPAN
Recent trends from a geographic perspective include weakness in Japan and slight weakness in the US. The Europe region has been performing very well as F5 has made some changes to its sales force and has been executing well. Europe recently has been winning larger deal sizes (defined as deals $1mm+) which has had a positive impact on the business (Europe had lagged the US in these bigger deals). Asia Pacific has been very strong recently as well. Regarding the current quarter, the company has indicated that Japan is likely to remain weak and that the other regions should show nominal positive growth sequentially. Japan is expected to benefit in the September quarter from the low end refresh as Japan is highly skewed to the low-end product line. Asia Pacific and Europe are not seeing any change to underlying growth they have just performed well recently.|
FFIV Geographic Mix |
12/31/06A |
3/31/07A |
6/31/07A |
9/31/07A |
12/31/07A |
3/31/08A |
6/31/08 |
9/31/08 |
|
|
120,030 |
127,605 |
132,425 |
145,607 |
154,184 |
159,141 |
165,585 |
171,263 |
||
|
Americas |
60.4% |
57.7% |
58.3% |
57.5% |
57.0% |
54.5% |
58.2% |
60.0% |
|
|
Europe |
16.7% |
17.1% |
18.1% |
18.4% |
21.5% |
22.6% |
21.5% |
20.0% |
|
|
Japan |
12.2% |
12.4% |
11.7% |
12.6% |
10.8% |
10.1% |
7.3% |
8.0% |
|
|
Asia Pacific |
10.7% |
12.7% |
11.9% |
11.5% |
10.7% |
12.8% |
13.0% |
12.0% |
|
|
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100.00% |
||
|
Americas |
72,498 |
73,628 |
77,204 |
83,724 |
87,885 |
86,732 |
96,325 |
102,758 |
|
|
Europe |
20,045 |
21,820 |
23,969 |
26,792 |
33,150 |
35,966 |
35,566 |
34,253 |
|
|
Japan |
14,644 |
15,823 |
15,494 |
18,346 |
16,652 |
16,073 |
12,143 |
13,701 |
|
|
Asia Pacific |
12,843 |
16,206 |
15,759 |
16,745 |
16,498 |
20,370 |
21,551 |
20,552 |
|
|
120,030 |
127,477 |
132,425 |
145,607 |
154,184 |
159,141 |
165,585 |
171,263 |
ARX ACQUIRED IN ACOPIA ACQUISITION IS AN EMERGING OPPORTUNITY – MIGHT TAKE MORE TIME
ARX is a new product and it addresses an unmet need in storage. Currently, storage devices have poor utilization as there is no load balancing type product that manages data traffic to and from storage devices. ARX is basically an ADC for storage devices (recall ADCs provide efficiency benefits for servers and the local area network). Without a load balancing product, storage devices are less efficient and more storage is needed to compensate for this shortcoming. The ARX product addresses these problems and automates the traffic management process by performing data migration to and from storage devices and adding intelligence to file traffic by tiering data that will be stored. Other attributes include (i) management of storage growth, (ii) providing backup administration and management, (iii) lowering IT operating costs, (iv) decreasing complexity (v) automating storage provisioning, and (vi) providing data mobility.
Management believes this product will one day be as big as the core ADC business ($400mm) but it is unclear how fast it will ramp since customers need to be educated about the product and its benefits to the storage market. I expect this business will be up 40% in CY09 to $50mm in revenues. It is possible that the product gains traction later in the year and further upside is possible. Checks from storage resellers indicate demand is great and there are numerous RFPs. I think this could be a large opportunity and the real question is how long this takes to ramp. Just some modest success could generate significant interest in the stock in my opinion.
The growth opportunity for the ARX seems exciting longer term. The total addressable market opportunity is going to increase 3x in the next few years.VIPRION SIGNIFICANTLY BETTER THAN COMPETITORS PRODUCT OFFERINGS
F5's latest high-end application delivery controller (ADC), VIPRION, delivers industry-leading throughput performance at Layer 4 and 7 (more than 2x Citrix and CSCO), SSL encryption (6-11x Citrix and CSCO) and traffic compression (almost 3x Citrix). VIPRION is by far the highest-performing ADC on the market and should have no problem penetrating the telco, Internet and large enterprise data center spaces. A customer could achieve the same throughput as VIRPRION by combining multiple competitor products. However, customers will not be able to achieve the advanced performance in encryption (security) and compression.
VIPRION has the ability to have 4 separate blades (and more soon) that increases the systems reliability (if 1 fails there are 3 others). This product is currently being tested in dot.coms, telcos and enterprises. Viprion is 3x less expensive, 4x easier to manage, uses 45% less electricity, and uses 70% less space. Viprion processes 4x as many requests per second (RPS) than existing F5 products.
F5 IS THE MARKET SHARE LEADER IN THE APPLICATION DELIVERY CONTROL MARKET
F5 management beleives that the pie on the left is going to grow due to the growth of traffic on both IT networks and on the internet. They have the leading share of the entire market (left pie) and the high end market (right pie). They expect the high end to grow significantly faster going forward, partly due to the VIPRION product offering and the performance metrics it can achieve. They expect to grow their already substantial share level in the high-end and benefit from that segment’s above market growth trends. The charts didnt come through on the post but they show the ADC market at $1.2b and the Advanced market at $700m with a 36% and 60% share, respectively.
POTENTIAL FOR OPERATING MARGIN EXPANSION
|
FFIV BASE |
Q1FY08 |
Q2FY08 |
Q3FY08 |
Q4FY08 |
|
||||||||
|
12/31/07A |
3/31/08A |
6/31/08A |
9/31/08 |
|
FY08 |
FY09 |
CY07 |
CY08 |
CY09 |
||||
|
Core Product (Ex-VIPRION) |
90,555 |
90,148 |
92,236 |
92,040 |
|
364,979 |
365,725 |
356,214 |
365,164 |
367,066 |
|||
|
Sequential % Chg |
|
(3.3%) |
(0.4%) |
2.3% |
(0.2%) |
|
5.5% |
0.2% |
8.5% |
2.5% |
0.5% |
||
|
Y-o-Y % Chg |
|
|
|
|
|
(1.8%) |
|
||||||
|
VIPRION |
0 |
1,500 |
5,000 |
8,000 |
14,500 |
40,000 |
0 |
24,500 |
42,000 |
||||
|
Sequential % Chg |
233.3% |
60.0% |
NA |
175.9% |
NA |
71.4% |
|||||||
|
Fire Pass |
7,100 |
7,500 |
7,500 |
6,300 |
28,400 |
24,000 |
28,100 |
27,300 |
24,000 |
||||
|
Sequential % Chg |
2.9% |
5.6% |
0.0% |
(16.0%) |
3.6% |
-15.5% |
12.4% |
-2.8% |
-12.1% |
||||
|
Traffic Shield |
2,650 |
2,700 |
2,750 |
2,750 |
10,850 |
11,000 |
9,050 |
10,950 |
11,000 |
||||
|
Sequential % Chg |
1.9% |
1.9% |
1.9% |
0.0% |
15.4% |
1.4% |
2.8% |
21.0% |
0.5% |
||||
|
Swan Labs |
2,200 |
2,200 |
2,200 |
2,000 |
8,600 |
9,050 |
8,400 |
8,400 |
9,500 |
||||
|
Sequential % Chg |
0.0% |
0.0% |
0.0% |
(9.1%) |
0.0% |
5.2% |
(22.9%) |
0.0% |
13.1% |
||||
|
Acopia |
7,700 |
8,100 |
5,100 |
4,700 |
25,600 |
19,800 |
9,300 |
22,200 |
22,500 |
||||
|
Sequential % Chg |
381.3% |
5.2% |
(37.0%) |
-7.8% |
1500.0% |
-22.7% |
NA |
138.7% |
1.4% |
||||
|
Product Revenue |
110,205 |
112,148 |
114,786 |
115,790 |
452,929 |
469,575 |
411,064 |
458,514 |
476,066 |
||||
|
Sequential % Chg |
3.0% |
1.8% |
2.4% |
2.8% |
15.3% |
3.7% |
25.2% |
11.5% |
3.8% |
||||
|
Service revenue |
43,979 |
46,993 |
50,799 |
55,473 |
197,244 |
233,819 |
148,757 |
209,570 |
240,271 |
||||
|
Sequential % Chg |
13.9% |
6.9% |
8.1% |
9.2% |
48.6% |
18.5% |
52.3% |
40.9% |
14.6% |
||||
|
Total Revenue |
|
|
154,184 |
159,141 |
165,585 |
171,263 |
|
650,173 |
703,394 |
559,821 |
668,084 |
716,337 |
|
|
Sequential % Chg |
|
5.9% |
3.2% |
4.0% |
3.4% |
|
|||||||
|
Y-o-Y % Chg |
28.5% |
24.7% |
25.0% |
17.6% |
23.7% |
8.2% |
31.4% |
19.3% |
7.2% |
||||
|
Product COGS |
24,689 |
24,969 |
26,158 |
26,584 |
102,400 |
106,235 |
89,567 |
104,053 |
107,406 |
||||
|
Product Gross Profit |
85,516 |
87,179 |
88,628 |
89,206 |
350,529 |
363,340 |
321,497 |
354,461 |
368,660 |
||||
|
Product Gross Margin |
77.6% |
77.7% |
77.2% |
77.0% |
77.4% |
77.4% |
78.2% |
77.3% |
77.4% |
||||
|
Service COGS |
10,550 |
11,719 |
12,020 |
12,329 |
46,618 |
52,609 |
37,472 |
48,737 |
54,061 |
||||
|
Service Gross Profit |
33,429 |
35,274 |
38,779 |
43,144 |
150,626 |
181,210 |
111,285 |
160,833 |
186,210 |
||||
|
Service Gross Margin |
76.0% |
75.1% |
76.3% |
77.8% |
76.4% |
77.5% |
74.8% |
76.7% |
77.5% |
||||
|
|
|||||||||||||
|
Total Gross Profit |
|
118,945 |
122,453 |
127,407 |
132,350 |
|
501,155 |
544,550 |
432,782 |
515,294 |
554,870 |
||
|
Total Gross Margin |
|
77.1% |
76.9% |
76.9% |
77.3% |
|
77.1% |
77.4% |
77.3% |
77.1% |
77.5% |
||
|
Sales & Marketing |
58,178 |
58,053 |
60,483 |
60,461 |
237,175 |
249,920 |
194,678 |
240,497 |
253,554 |
||||
|
% of Sales |
37.7% |
36.5% |
36.5% |
35.3% |
36.5% |
35.5% |
34.8% |
36.0% |
35.4% |
||||
|
R&D |
24,332 |
26,418 |
26,277 |
26,367 |
103,394 |
112,500 |
78,823 |
106,562 |
114,000 |
||||
|
G & A |
13,426 |
14,484 |
13,459 |
14,632 |
56,001 |
64,500 |
49,864 |
58,075 |
66,250 |
||||
|
Total Operating Expenses |
95,936 |
98,955 |
100,219 |
101,460 |
396,570 |
426,920 |
323,365 |
405,134 |
433,804 |
||||
|
62.2% |
62.2% |
60.5% |
59.2% |
61.0% |
60.7% |
57.8% |
60.6% |
60.6% |
|||||
|
Operating Income |
|
23,009 |
23,498 |
27,188 |
30,890 |
|
104,585 |
117,630 |
|
109,417 |
110,160 |
121,066 |
|
|
Adjusted Operating Income |
38,345 |
39,165 |
42,005 |
45,652 |
165,167 |
183,630 |
157,236 |
171,906 |
187,066 |
||||
|
Operating Margin % |
24.9% |
24.6% |
25.4% |
26.7% |
25.4% |
26.1% |
28.1% |
25.7% |
26.1% |
||||
|
Other Income |
6,132 |
5,589 |
3,716 |
3,513 |
18,950 |
12,300 |
27,892 |
15,818 |
12,800 |
||||
|
Pre-Tax Income |
29,141 |
29,087 |
30,904 |
34,403 |
123,535 |
129,930 |
137,309 |
125,978 |
133,866 |
||||
|
Taxes |
11,390 |
11,342 |
11,770 |
11,381 |
45,883 |
46,179 |
50,911 |
44,284 |
49,531 |
||||
|
Effective Tax Rate |
39.1% |
39.0% |
38.1% |
33.1% |
37.1% |
35.5% |
37.1% |
35.2% |
37.0% |
||||
|
GAAP Net Income |
17,751 |
17,745 |
19,134 |
23,022 |
77,652 |
83,751 |
86,398 |
81,694 |
84,336 |
||||
|
Stock Comp in COGS |
1,054 |
1,051 |
1,065 |
1,175 |
4,345 |
4,000 |
3,013 |
4,291 |
4,000 |
||||
|
Stock Comp in Op Ex |
14,282 |
14,616 |
13,752 |
13,587 |
56,237 |
62,000 |
44,806 |
57,455 |
62,000 |
||||
|
Total Stock Comp |
15,336 |
15,667 |
14,817 |
14,762 |
60,582 |
66,000 |
47,819 |
61,746 |
66,000 |
||||
|
Stock Comp Tax Impact |
(4,261) |
(4,469) |
(3,780) |
(4,434) |
(16,944) |
(19,800) |
(11,241) |
(17,633) |
(19,800) |
||||
|
Net Impact of Stock Comp |
11,075 |
11,198 |
11,037 |
10,328 |
43,638 |
46,200 |
36,578 |
44,113 |
46,200 |
||||
|
Pro Forma Net Income |
28,826 |
28,943 |
30,171 |
33,350 |
121,290 |
129,951 |
122,976 |
125,807 |
130,536 |
||||
|
FD Shares |
86,141 |
83,805 |
81,951 |
80,785 |
83,171 |
79,500 |
85,506 |
81,698 |
79,250 |
||||
|
Pro Forma EPS |
|
$0.33 |
$0.35 |
$0.368 |
$0.413 |
|
$1.46 |
$1.63 |
|
$1.44 |
$1.54 |
$1.65 |
|
|
0.6% |
12.1% |
7.1% |
7.0% |
||||||||||
| show sort by |
Are you sure you want to close this position F5 Networks?
By closing position, I’m notifying VIC Members that at today’s market price, I no longer am recommending this position.
Are you sure you want to Flag this idea F5 Networks for removal?
Flagging an idea indicates that the idea does not meet the standards of the club and you believe it should be removed from the site. Once a threshold has been reached the idea will be removed.
You currently do not have message posting privilages, there are 1 way you can get the privilage.
Apply for or reactivate your full membership
You can apply for full membership by submitting an investment idea of your own. Or if you are in reactivation status, you need to reactivate your full membership.
What is wrong with message, "".