F5 Networks F2Q07 (Qtr End 3/31/07) Earnings Call Transcript

Tags: F5 Networks Inc.

Question-and-Answer Session

Operator

(Operator Instruction) Our first question comes from Troy Jensen. Your line is open. Please state your company name and you may ask your question.

Troy Jensen - Piper Jaffray

Piper Jaffray, congrats on the next quarter John.

John Eldridge

Thank you.

Troy Jensen - Piper Jaffray

Hey, quick question on BIG-IP 8800 was that, could you share whether or not that was a generating revenues for you in the during the March quarter?

John Eldridge

Yes it did generated, you know, we won’t as we’ve done in the past nicely indicated specific revenues by product. But we absolutely shift and took revenue on a last quarter.

Troy Jensen - Piper Jaffray

Okay, it was a primarily just to beta sides that converted?

John Eldridge

No, it was combination of some base have also you know some of the larger customers I would kept in my script.

Troy Jensen - Piper Jaffray

Okay, understood got it, two questions quickly for Andy, Andy you mentioned book-to-bill is below one in the quarter, is that correct?

Andy Reinland

Yep.

Troy Jensen - Piper Jaffray

Anyway you guys can maybe quantify how close to it was?

John Eldridge

Yeah, let me do that Troy. And don’t, we can tell, we report at the end of the year, but just to give you a few for it. As to book-to-bill was equal to one we would have been within our range of guidance of a 124 to 126.

Troy Jensen - Piper Jaffray

Got you, okay that’s very clear. And then a last question, I guess talked about you know operating margins in the high 20% range looks like right now if my math is correct pro forma is 29.3 given that the headcount higher it sounds like it is going to decelerate a little bit. Do you think we are kind of roughly at the low point of the margins or...

John Eldridge

I think if you look at the guidance that has sized up for Q3, you will kind of see that we expected to stay in that range for Q3 and now wouldn’t look to headcount number is anything other than looking at our expectations today given the hiring we have to date immigrating them into the organization that’s the number that we can see fitting in nicely for Q3 and as we always say we’ll revaluate and reassess and adjust those as the numbers play out.

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