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F5 Networks, Inc. Message Board

  • fz1973 fz1973 Jun 13, 2000 6:41 PM Flag

    F5 at Bear Sterns Tech Conference.

    Board,

    I was at the conference this
    afternoon where F5 was presenting at 3:15 pm. Both Jeff
    Husseu and BOb Chamberlain were the presenters, as well
    as Bear Sterns analyst, Bob Lam:

    1. Bob Lam
    opened by reiterating his buy on F5 and commenting on
    today's release of their new Big-IP content
    switch.

    2. Both Jeff and Bob gave a brief overview of F5,
    its current products and the revenues we've been
    seeing the past couple of quarters. Both Bob and Jeff
    confirmed that they have 2000 customers up until this
    quarter, up from 1600 last quarter.

    3. F5 has
    increased their total sales from Asia and Europe to 25% (or
    will be at that number by the end of this quarter)!
    Thats up from 19% last quarter!

    4. Breakout
    sesion was interesting:
    a. The BIG-IP content switch
    is typically at least 4x faster for delivery of
    content than BIG-IP on its own.
    b. Last quater, the
    internal costs of Sales and Marketing cut into revenues
    quite substantially.This will decrease to a moderate
    rate of 35% of revenues by this quarter. I think Bob
    said they curently have a staff of 60 in Sales and
    Marketing and they are working towards increasing that to
    90 by the end of this year!
    c. Shipment of the
    DELL Power Appliance will begin mid-September and they
    are on schedule with production. Increase in OEM
    revenues (from DELL) will surface in the last quarter of
    2000.
    d. Jeff commented on CISCO's acquistion of
    Arrowpoint. He said that Arrowpoint was for sale for a long
    time and thus they could've spent much less than 5.6b
    for that acquistion. There seems to be much confusion
    with the current CISCO customers and their sales force
    as to which load balancing equipment is to be
    'recomended'. Obviously, that is an advantage for F5. The fact
    that they spent 5.6b raises the value of this market
    sector tremendously, and thus is another advantage for
    F5.

    Going forward, they commented on their strategic
    alliance with Akamai and that there will be many others to
    come. They firmly believe in their business model and
    both Bob and Jeff seemed confident about
    that.

    Good luck to all.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The best information we have is from Bear Sterns
      on 6/13. Read fz1973's insightful post (msg #35053).
      The following is a summary of the information (fz,
      correct me if I have it wrong):

      1. increase in
      customers from 1600 (beginning of last quarter?) to 2000
      (beginning of this quarter?)

      2. total sales in Asia
      and Europe is up to 25% of revenue (up from 19% last
      quarter)

      3. decrease % of internal Sales and Marketing costs
      to 35% of revenue (apparently Sales and Marketing
      cut into revenues substantially last quarter) -
      interestingly, they discuss reducing the % of internal Sales and
      Marketing, but also talk about increasing the sales force
      from 60 to 90 by the end of the year - are they paying
      the inceased sales force much less or growing
      phenominally?

      This information along with high valuations and
      takeover rumors gives F5 good up
      side.

      --alwaysbaffled

    • Thanks for the word on the bear sterns. Thats
      what boards are about. Yesterdays turn around some say
      was due to Greenspan talking and coming out neutral
      on things.

      woof woof
      the dog is long

    • fz,

      Wow, thanks for taking the time to pass on what you saw and heard today. Nice job.

      Pencil

    • Thank you for having the courtesy to inform the
      F5 board regarding these issues. I am very greatful
      for this information and confirms what I have been
      thinking of F5.

      The only thing we must observe is
      the falling prices of these load balancers. In a
      recent posts of mine 33887-33893 it was projected that
      by year end these would fall to $3000 dollars by
      year end. We must watch the pricing action of the
      stock. Also, please observe the Alteon stock price as
      this company might be one of the first to have to
      consolidate in this industry because they gambled so heavily
      on the ASIC chips -- that statement should be
      stipulated with the fact this will happen if the new BIG-IP
      product is as good as they say.

      Thank you
      again.

      K-dog

      • 2 Replies to kdog2020
      • I have spoken personally with Bob Chamberlain on
        a few occasions and in fact brought up the
        conversation of pricing pressures in the industry because your
        post was quite alarming if true. He reassured me that
        the Big IP which sold last year in the mid $31,000 is
        now in the mid $30,000 range and pricing pressure
        should not be a major concern in the future due to the
        strong demand for their products. He said you can expect
        a similar % decrease over the upcoming year and
        nothing more. Take from that what you will but everything
        else that he has mentioned to this point has been
        right on the $$$ and I for one believe him and am
        betting a substantial amount of cash on f5!

      • I think my e-mail isn't working,sent you 3
        answers they always came back.

        The prices from the
        load balancers are falling,so are the components.They
        also recrute more customers and will show higher
        revenues.Look at AMAT, chip prices falling and they doing
        great.

    • <EOM>

 
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