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F5 Networks F1Q07 (Qtr End 12/31/06) Earnings Call Transcript

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2007-01-24 17:01:16.0

Tags: F5 Networks Inc.

Question-and-Answer Session

Operator

Thank you.

John McAdam

Thank you.

Operator

Troy Jensen, please state your company name and you may ask your question.

Troy Jensen - Piper Jaffray

Yeah, Piper Jaffray. Good afternoon gentlemen. A quick question Andy, could you go over some of the guidance numbers again, specifically the stock-based option expense based on the operating lines?

Andy Reinland

Yeah, in the operating expenses, it is going to be $11 million of stock-based comp, and in COGS, it is going to be $0.5 million.

Troy Jensen - Piper Jaffray

Okay gotcha. So if I run these numbers, can I assume it more towards the top-end of the range, so that gets to about $0.65 pro forma, does that sound roughly correct?

Andy Reinland

Yes, roughly.

Troy Jensen - Piper Jaffray

Okay. Okay perfect. And then John, can you talk about the 8800, any sense that customers may have been waiting for that product at all or maybe give us some insight on how the 8400 performed in the December quarter?

John McAdam

Yeah, I mean when I talked last quarter about the beta test was going on. We had approximately 40 beta sites. So there is clearly an interest in the product. Whether they were waiting on not, I don’t think that’s a specific issue actually. And in terms of 8400, we did see good demand for that. We don’t give out the actual numbers by product, but we did see good demand, especially in the sort of Internet cum service providers market as well as the high-end enterprise.

Troy Jensen - Piper Jaffray

Got it. Alright, gentleman, keep up the good work.

John McAdam

Thank you.

Operator

Thank you. Jiong Shao, your line is open. Please state your company name and you may ask your question.

Jiong Shao - Lehman Brothers

Lehman Brothers. Thank you very much. A couple of questions, first question is on the stock comp as well. Could you just remind us how that will work? The vesting period for employees and executives and you say you're going once a year, you does that pro rata into every quarter and exactly how that work? And, you have only $0.5 million stock comp level this current quarter? Is that going to be sort at a level going forward or you think it may trade off or trend up? So, that’s the first question. And second question, I was hoping you can talk a little bit about your progress?

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