10-KPeriod: FY2015

F5, INC. Annual Report, Year Ended Sep 30, 2015

Filed November 6, 2015For Securities:FFIV

Summary

F5, Inc. (FFIV) demonstrated robust growth in its fiscal year ending September 30, 2015, with total net revenues increasing by 10.8% year-over-year to $1.92 billion. This growth was primarily driven by strong performance in both its product and service segments. The company's core business remains centered around its TMOS (Traffic Management Operating System) platform, which underpins a comprehensive suite of application delivery services. F5 continues to invest heavily in research and development, with R&D expenses rising to $296.6 million, reflecting a commitment to innovation and adaptation in the rapidly evolving technology landscape. Financially, F5 maintained a strong position with significant cash reserves and no long-term debt. The company repurchased $606.9 million in its own stock during the fiscal year, underscoring its financial health and commitment to returning value to shareholders. Despite increasing operating expenses, particularly in sales and marketing and R&D, the company achieved a healthy net income of $365.0 million. F5's strategy focuses on expanding its addressable market through technology investments and strategic partnerships, positioning it to capitalize on the growing demand for secure, fast, and available application delivery services across hybrid IT infrastructures.

Financial Highlights

50 data points
Beta

Revenue

$1.92B

82.7% Gross Margin

Net Income

$365.01M

19.0% Net Margin

EPS (Diluted)

$5.03

Total Assets

$2.31B

Cash & Equivalents

$390.46M

Free Cash Flow

$624.23M

Financial Statements
Beta
Revenue$1.92B
Cost of Revenue$332.26M
Gross Profit$1.59B
R&D Expenses$296.58M
Operating Expenses$1.03B
Operating Income$552.90M
Net Income$365.01M
EPS (Basic)$5.07
EPS (Diluted)$5.03
Shares Outstanding (Basic)71.94M
Shares Outstanding (Diluted)72.55M

Key Highlights

  • 1Total net revenues grew by 10.8% to $1.92 billion in fiscal year 2015.
  • 2Product revenues increased by 5.9%, driven by core Application Delivery Networking (ADN) products.
  • 3Service revenues saw robust growth of 16.6%, fueled by maintenance contracts and consulting services.
  • 4Research and Development expenses increased by 12.4% to $296.6 million, indicating a strong focus on innovation.
  • 5The company maintained a strong liquidity position with $1.17 billion in cash and investments and no long-term debt.
  • 6F5 repurchased $606.9 million of its common stock, demonstrating a commitment to shareholder returns.
  • 7Net income reached $365.0 million, a significant increase from the previous year.

Frequently Asked Questions

F5's core technology is its TMOS (Traffic Management Operating System) platform. This programmable, scalable software platform supports a wide array of application services including traffic management, security, access management, and web acceleration. These services are offered on F5's purpose-built hardware appliances (BIG-IP and VIPRION), as software-only Virtual Editions, and through cloud-based Silverline SaaS offerings.

F5 generates revenue from both product sales (hardware and software) and services (maintenance, consulting, training). In fiscal year 2015, product revenues increased by 5.9% to $991.5 million, while service revenues grew by 16.6% to $928.3 million. The faster growth in services, coupled with strong demand for core ADN products, contributed to an overall 10.8% increase in total net revenues.

F5 demonstrates a strong commitment to R&D, as evidenced by a 12.4% increase in R&D expenses to $296.6 million in FY2015. The company invests in developing new features and functions on its TMOS platform and also considers acquisitions to broaden its offerings. This focus on innovation is crucial for F5 to maintain its technology leadership and address the evolving needs of its customers in the dynamic IT infrastructure market.

F5 maintained a strong financial position in FY2015, with $1.17 billion in cash and investments and no long-term debt. The company generated significant cash from operations and actively engaged in share repurchases, spending $606.9 million on stock buybacks during the fiscal year. This indicates a strategy focused on financial flexibility, operational investment, and shareholder returns.