10-KPeriod: FY2013

F5, INC. Annual Report, Year Ended Sep 30, 2013

Filed November 22, 2013For Securities:FFIV

Summary

F5, INC. (FFIV) filed its 2013 10-K report on November 22, 2013, detailing its operations as a leading provider of application delivery services. The company's core technology is the TMOS platform, which powers its Application Delivery Controllers (ADCs). These ADCs are available as both hardware appliances and software-only Virtual Editions, offering customers flexibility in managing application traffic, ensuring security, speed, and availability. F5's strategy centers on a complete, integrated product suite, continuous technological investment, and market expansion through development and acquisitions. The company demonstrated revenue growth, driven by its services segment, while product revenue saw a slight decline, attributed to customers evaluating new appliance introductions. F5 continues to invest heavily in R&D, reflecting its commitment to innovation in the dynamic IT landscape.

Financial Highlights

51 data points
Beta

Revenue

$1.48B

82.9% Gross Margin

Net Income

$277.31M

18.7% Net Margin

EPS (Diluted)

$3.50

Total Assets

$2.23B

Cash & Equivalents

$189.69M

Free Cash Flow

$473.11M

Financial Statements
Beta
Revenue$1.48B
Cost of Revenue$253.05M
Gross Profit$1.23B
R&D Expenses$209.61M
Operating Expenses$797.45M
Operating Income$430.82M
Net Income$277.31M
EPS (Basic)$3.53
EPS (Diluted)$3.50
Shares Outstanding (Basic)78.56M
Shares Outstanding (Diluted)79.14M

Key Highlights

  • 1F5's core offering revolves around its TMOS platform, enabling Application Delivery Controllers (ADCs) that manage, secure, and accelerate application delivery.
  • 2Products are offered in flexible formats: high-performance hardware appliances (BIG-IP, VIPRION) and software-only Virtual Editions (VEs) for cloud and virtual environments.
  • 3The company is actively expanding its market reach through strategic acquisitions, notably LineRate Systems and Versafe in fiscal year 2013, to enhance its software-defined and security offerings.
  • 4Total net revenues grew by 7.6% in fiscal year 2013, primarily driven by a 22.2% increase in service revenues, reflecting growth in maintenance contracts and consulting services.
  • 5Product revenues experienced a slight decrease of 2.4% year-over-year, attributed to customers awaiting new appliance releases, though sequential growth was observed in the latter half of the fiscal year.
  • 6F5 maintained strong gross margins around 82.9% and demonstrated robust operating cash flow of $499.7 million in fiscal year 2013.
  • 7The company has a significant cash and investments balance of $1.27 billion, with no long-term debt, indicating a strong financial position.

Frequently Asked Questions

F5's primary business is providing application delivery services, centered around its proprietary TMOS (Traffic Management Operating System) platform. This platform enables their Application Delivery Controllers (ADCs) to ensure applications are secure, fast, and available to users.

F5 offers its products in two main formats: high-performance, purpose-built hardware appliances (like BIG-IP and VIPRION systems) and software-only Virtual Editions (VEs) designed to run on standard servers and major hypervisors, providing flexibility for various deployment environments including private and public clouds.

In fiscal year 2013, F5 saw an overall revenue increase of 7.6%, largely due to a significant 22.2% rise in service revenues from maintenance and consulting. Product revenues experienced a slight decline of 2.4%, which the company attributed to customers evaluating upcoming hardware, though sales improved sequentially in the latter half of the year. The company maintained strong gross margins and generated substantial operating cash flow.

F5's strategy includes offering a complete and integrated product suite, investing heavily in R&D, and expanding its addressable market. This expansion is supported by strategic acquisitions, such as LineRate Systems and Versafe in fiscal year 2013, aimed at enhancing its capabilities in areas like software-defined networking and advanced security.