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F5 Networks F1Q08 (Qtr End 12/21/2007) Earnings Call Transcript

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2008-01-23 19:24:07.0

Tags: F5 Networks Inc.

Question-and-Answer Session

Operator

Operator

(Operator Instructions). Our first question is coming from Troy Jensen, Piper Jaffray.

Troy Jensen - Piper Jaffray

Hey, good afternoon gentlemen.

Andy Reinland

Hi, Jensen.

Troy Jensen - Piper Jaffray

Hey, so a couple of questions here, sort of financial stuff for Andy, could frame up maybe how much of the Acopia revenues fall into financial services. I guess I was surprised to see financial go from 17% to 23% in the quarter here?

Andy Reinland

Yes, historically we haven't broken out our verticals by product line, but I will let you that Acopia is strongly in the financial sector.

Troy Jensen - Piper Jaffray

Okay. Okay, fair, and then Andy, its kind the same thing, I know you are not going to give specific guidance, but: what's your sense for financial services this year? Obviously, your core business: do you think that that's in a situation where financial vertical will be up for you guys, this year, axing out Acopia?

John McAdam

Hi Troy, it's John here. Obviously we've been watching really, really closely, in fact frankly, all of the enterprise businesses we [cannot put] guidance for this coming quarter. First of all; we have got pretty compelling value propositions for finance both with the Acopia ARX products and with BIG-IP. And as you know, we didn't see any significant downturn last quarter but clearly we were watching it. We believe, we have taken a pretty conservative view overall in terms of U.S. enterprise including finance and the guidance. And we've done that by looking at bottom-ups forecast. We've done by looking at the pipeline and where the projects are in terms of buying cycles, so, I think, we got it under control but clearly, we are taking a reasonably conservative view.

Troy Jensen - Piper Jaffray

Okay and then the last one for you, John, Montreal released today, should we expect: is it just going to be like data site conversion here in the March quarter for revenues?

John McAdam

Yeah, I have seen in the script, there, we do think that we are modest, yes, absolutely. We know how the [Evals's] are ongoing, so Evals's are happening as we speak. We do expect to see revenue but we think it be modest. Its a pretty sophisticated solution its a non-trivial deal for the customer to make this decision but the value proposition during the -- during the second half of the fiscal year, is something when you see that in the fidelity of the product.

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