F5 Networks Inc (FFIV)’s First Quarter 2015 Earnings Conference Call Transcript

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Below is transcript of the F5 Networks, Inc. (NASDAQ:FFIV)’s First Quarter 2015 Earnings Conference Call, held on January 21, 2015 at 4:30 p.m. EST.


F5 Networks



F5 Networks, Inc. (NASDAQ:FFIV)  is the developer and provider of application delivery services. The Company’s core technology is a full-proxy, programmable, software platform called TMOS (Traffic Management Operating System). It helps organizations seamlessly scale cloud, data center, and software-defined networking deployments to successfully deliver applications to anyone, anywhere, at any time.


Company Executives:

John Eldridge, Director of Investor Relations
John McAdam, President and Chief Executive Officer
Andy Reinland, Executive Vice President and Chief Financial Officer
Manuel Rivelo, Executive Vice President of Strategic Solutions



Jayson Noland, Robert Baird
Ehud Gelblum, Citigroup
Kent Schofield, Goldman Sachs
Brian White, Cantor Fitzgerald
Michael Genovese, MKM Partners
Subu Subrahmanyan, The Juda Group
Brent Bracelin, Pacific Crest Securities
James Faucette, Morgan Stanley
Catharine Trebnick, Dougherty & Company
Tim Long, BMO Capital Markets



Good afternoon, and welcome to the F5 Networks First Quarter 2015 Financial Results Conference Call. At this time, all parties will be on listen only and for the question and answer portion, also today’s conference is being recorded. If you have objections, please disconnect at this time. I’d now like to turn the call over to John Eldridge, Director of Investor Relations. Sir, you may begin.


John Eldridge, Director of Investor Relations

Thank you, Brian, and welcome to our conference call for the first quarter and fiscal 2015. John McAdam, President and CEO and Andy Reinland, Executive VP and Chief Financial Officer will be the speakers on today’s call. Other members of our executive team are also on hand to answer questions following John and Andy’s prepared comments. If you have any follow-up questions after the call, please direct them to me at (206) 272-6571. A copy of today’s press release is available on our website at f5.com. In addition, you can access an archived version of today’s live webcast from the Events Calendar page of our website through April 22. From 4:30 p.m. today until midnight Pacific Time, January 22, you can also listen to a telephone replay at (888) 673-3568 or (402) 220-6431.

During today’s call, our discussion will contain forward-looking statements that include words such as believe, anticipate, expect and target. These forward-looking statements involve uncertainties and risks that may cause our actual results to differ materially from those expressed or implied by these statements. Factors that may affect our results are summarized in our quarterly release and described in detail on our SEC filings. Please note that F5 has no duty to update any information presented in this call. Now I will turn the call over to Andy Reinland.


Andy Reinland, Executive Vice President and Chief Financial Officer

Thank you, John. Before I start my prepared remarks, I’d just ask you to be a little patient if pause I have been battling with cough so with that we’ll get underway. Sales in the first quarter of fiscal 2015 reflected the seasonality we normally see at the beginning of our fiscal year. And in general we saw fewer large deals this quarter compared to previous quarters. As a result revenue of $462.8 million was in the lower half of our guided range of $460 million to $470 million reflecting 14% year-over-year growth and down slightly from the fourth quarter of fiscal 2014. GAAP EPS was $1.21 per share, above our guidance of $1.10 to $1.13 per share. Non-GAAP EPS of $1.55 per share also exceeded our guidance of $1.46 to $1.49 per share. Both GAAP and non-GAAP results include a one-time benefit related to the retroactive reinstatement of the R&D tax credit for 2014 resulting in a benefit to EPS of approximately $0.08 per share on a GAAP basis and $0.07 per share on a non-GAAP basis.

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