F5 (FFIV) 8-K F5 Networks Announces Fourth Quarter and Fiscal 2013 Results

Exhibit 99.1

4Q13/FY13 Earnings Release Page 1 of 5

FOR IMMEDIATE RELEASE

CONTACT: Investor Relations

John Eldridge

(206) 272-6571

j.eldridge@f5.com

Public Relations

Alane Moran

(206) 272-6850

a.moran@f5.com

F5 Networks Announces Fourth Quarter and Fiscal 2013 Results

Fourth quarter revenue up 9 percent year over year; 2013 revenue up 8 percent from 2012

SEATTLE, WA—October 23, 2013—F5 Networks, Inc. (NASDAQ: FFIV) today announced revenue of $395.3 million for the fourth quarter of fiscal year 2013, up 7 percent from $370.3 million in the prior quarter and 9 percent from $362.6 million in the fourth quarter of fiscal year 2012. For fiscal year 2013, revenue was $1.48 billion, up 8 percent from $1.38 billion in fiscal year 2012.

GAAP net income for the fourth quarter was $76.2 million ($0.97 per diluted share) compared to $68.2 million ($0.86 per diluted share) in the third quarter of 2013 and $67.7 million ($0.85 per diluted share) in the fourth quarter a year ago. GAAP net income for fiscal year 2013 was $277.3 million ($3.50 per diluted share) versus $275.2 million ($3.45 per diluted share) in fiscal year 2012.

Excluding the impact of stock-based compensation, amortization of purchased intangible assets and a loss on a facility sublease, non-GAAP net income for the fourth quarter was $99.2 million ($1.26 per diluted share), compared to $88.4 million ($1.12 per diluted share) in the prior quarter and $88.7 million ($1.12 per diluted share) in the fourth quarter of fiscal 2012. For fiscal year 2013, non-GAAP net income was $362.9 million ($4.59 per diluted share) versus $348.6 million ($4.37 per diluted share) in fiscal year 2012.

A reconciliation of GAAP net income to non-GAAP net income is included on the attached Consolidated Statements of Operations.

“The fourth quarter of fiscal 2013 was a positive finish to the year, characterized by strong demand for our new products and increasing traction in new and emerging market opportunities,” said John McAdam, F5 president and chief executive officer.

“Following the release of the BIG-IP 5000 and 7000 series at the end of the third quarter, our entire refreshed family of BIG-IP appliances was shipping in Q4, contributing to strong sales in the quarter and continuing momentum as we enter fiscal 2014. We also won several large deals driven by new and enhanced software modules, including Advanced Firewall Manager (AFM), Application Security Manager (ASM), Access Policy Manager (APM), and Policy Enforcement Manager (PEM). In addition, our Virtual Edition (software-only) products continued to gain traction, with revenue up 21 percent sequentially across a broad base of diverse customers.

4Q13/FY13 Earnings Release Page 2 of 5

“As reflected in the number of large deals involving AFM, ASM and APM, security was a key business driver in Q4, and we continued to expand our integrated security offerings with the acquisition of Versafe, a provider of fraud detection and prevention solutions, in early September. In the service provider segment, we further strengthened our pipeline of Diameter signaling and routing opportunities with a number of Traffix design wins at major carriers.

“While the global economy shows no signs of improvement in the near term, we are confident that the company-specific drivers that contributed to our growth in Q4 will continue into fiscal 2014. As we look ahead to Q1, we expect to see continued strength in our new product offerings against the backdrop of our typical Q1 seasonality,” McAdam said.

For the first quarter of fiscal 2014, ending December 31, the company has set a revenue target of $390 million to $400 million with a GAAP earnings target of $0.81 to $0.84 per diluted share. Excluding stock-based compensation expense and amortization of purchased intangible assets, the company’s non-GAAP earnings target is $1.17 to $1.20 per diluted share.

A reconciliation of the company’s expected GAAP and non-GAAP earnings is provided in the following table:

	Three months ended December 31, 2013
Reconciliation of Expected Non-GAAP First Quarter Earnings	Low			High
Net income	$	63.7		$	66.1
Stock-based compensation expense	$	36.0		$	36.0
Amortization of purchased intangible assets	$	2.1		$	2.1
Tax effects related to above items	($	10.2	)	($	10.2	)
Non-GAAP net income excluding stock-based compensation expense and amortization of purchased intangible assets	$	91.6		$	94.0
Net income per share - diluted	$	0.81		$	0.84
Non-GAAP net income per share - diluted	$	1.17		$	1.20

Analyst/Investor Meeting

F5 will hold a meeting for analysts and investors at The Sofitel New York, from 8:00 a.m. to 12:30 p.m. Eastern Time on Thursday, November 14, 2013.

To register online, please visit:http://interact.f5.com/2013Q3SAIMInvestorRelations_2-Registration2.html.

For more information email the registration team atF5AIM@f5.com.

4Q13/FY13 Earnings Release Page 3 of 5

The meeting will also be webcast live and an archived version will be available through January 22, 2014. The link for the live webcast and the archived version iswww.f5.com/about/investor-relations/events-calendar.html.

About F5 Networks

F5 Networks (NASDAQ: FFIV) makes the connected world run better. F5 helps organizations meet the demands and embrace the opportunities that come with the relentless growth of voice, data, and video traffic, mobile workers, and applications—in the data center, the network, and the cloud. The world’s largest businesses, service providers, government entities, and consumer brands rely on F5’s intelligent services framework to deliver and protect their applications and services while ensuring people stay connected. Learn more at www.f5.com.

You can also follow @f5networks on Twitter or visit us on Facebook for more information about F5, its partners, and technology. For a complete listing of F5 community sites, please visit www.f5.com/news-press-events/web-media/community.html.

Forward Looking Statements

Statements in this press release concerning the continuing strength of F5’s business, sequential growth, the target revenue and earnings range, share amount and share price assumptions, demand for application delivery networking and storage virtualization products and other statements that are not historical facts are forward-looking statements. Such forward-looking statements involve risks and uncertainties, as well as assumptions and other factors that, if they do not fully materialize or prove correct, could cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: customer acceptance of our new traffic management, security, application delivery, WAN optimization and storage virtualization offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive pricing pressures; increased sales discounts; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; F5’s ability to sustain, develop and effectively utilize distribution relationships; F5’s ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5’s ability to expand in international markets; the unpredictability of F5’s sales cycle; the share repurchase program; future prices of F5’s common stock; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. All forward-looking statements in this press release are based on information available as of the date hereof and qualified in their entirety by this cautionary statement. F5 assumes no obligation to revise or update these forward-looking statements.

4Q13/FY13 Earnings Release Page 4 of 5

GAAP to non-GAAP Reconciliation

F5’s management evaluates and makes operating decisions using various operating measures. These measures are generally based on the revenues of its products, services operations and certain costs of those operations, such as cost of revenues, research and development, sales and marketing and general and administrative expenses. One such measure is net income excluding stock-based compensation, amortization of purchased intangible assets and acquisition-related charges, net of taxes, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. This measure consists of GAAP net income excluding, as applicable, stock-based compensation, amortization of purchased intangible assets and acquisition-related charges. This measure of non-GAAP net income is adjusted by the amount of additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead of GAAP results to calculate the company’s tax liability. Stock-based compensation is a non-cash expense that F5 has accounted for since July 1, 2005 in accordance with the fair value recognition provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 Compensation—Stock Compensation (“FASB ASC Topic 718”). Amortization of intangible assets is a non-cash expense. Investors should note that the use of intangible assets contribute to revenues earned during the periods presented and will contribute to revenues in future periods. Acquisition-related expenses consist of professional services fees incurred in connection with acquisitions. In addition, a loss on a facility sublease has been excluded from GAAP net income for the purpose of measuring non-GAAP earnings and earnings per share in the fourth fiscal quarter of 2013.

Management believes that non-GAAP net income per share provides useful supplemental information to management and investors regarding the performance of the company’s core business operations and facilitates comparisons to the company’s historical operating results. Although F5’s management finds this non-GAAP measure to be useful in evaluating the performance of the core business, management’s reliance on this measure is limited because items excluded from such measures could have a material effect on F5’s earnings and earnings per share calculated in accordance with GAAP. Therefore, F5’s management will use its non-GAAP earnings and earnings per share measures, in conjunction with GAAP earnings and earnings per share measures, to address these limitations when evaluating the performance of the company’s core business. Investors should consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures in accordance with GAAP.

F5 believes that presenting its non-GAAP measure of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the company’s core business and which management uses in its own evaluation of the company’s performance. Investors are encouraged to look at GAAP results as the best measure of financial performance. However, while the GAAP results are more complete, the company provides investors this supplemental measure since, with reconciliation to GAAP, it may provide additional insight into the company’s operational performance and financial results.

4Q13/FY13 Earnings Release Page 5 of 5

For reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, please see the section in our Condensed Consolidated Statement of Operations entitled “GAAP to Non-GAAP Reconciliation.”

# # #

F5 Networks, Inc.

Consolidated Balance Sheets

(unaudited, in thousands)

	September 30,			September 30,
	2013			2012
Assets
Current assets
Cash and cash equivalents	$	189,693		$	211,181
Short-term investments		352,450			320,970
Accounts receivable, net of allowances of $3,259 and $3,254		204,205			185,172
Inventories		19,026			17,410
Deferred tax assets		16,342			10,362
Other current assets		34,655			30,986
Total current assets		816,371			776,081
Property and equipment, net		63,522			59,604
Long-term investments		728,981			662,803
Deferred tax assets		22,389			35,478
Goodwill		523,727			348,239
Other assets, net		75,564			28,996
Total assets	$	2,230,554		$	1,911,201
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	37,313		$	27,026
Accrued liabilities		92,608			86,409
Deferred revenue		421,429			352,594
Total current liabilities		551,350			466,029
Other long-term liabilities		25,202			21,078
Deferred revenue, long-term		109,944			94,694
Deferred tax liabilities		5,346			—
Total long-term liabilities		140,492			115,772
Commitments and contingencies
Shareholders’ equity
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding		—			—
Common stock, no par value; 200,000 shares authorized, 78,090 and 78,715 shares issued and outstanding		262,505			326,922
Accumulated other comprehensive loss		(7,414	)		(3,829	)
Retained earnings		1,283,621			1,006,307
Total shareholders’ equity		1,538,712			1,329,400
Total liabilities and shareholders’ equity	$	2,230,554		$	1,911,201

F5 Networks, Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except per share amounts)

	Three Months Ended						Twelve Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Net revenues
Products	$	212,291		$	209,718		$	798,856		$	818,555
Services		183,038			152,841			682,458			558,692
Total		395,329			362,559			1,481,314			1,377,247
Cost of net revenues (1)(2)
Products		35,151			35,752			129,066			137,102
Services		31,792			26,929			123,981			99,066
Total		66,943			62,681			253,047			236,168
Gross Profit		328,386			299,878			1,228,267			1,141,079
Operating expenses (1)(2)(3)
Sales and marketing		119,836			116,298			483,041			445,595
Research and development		54,464			47,731			209,614			177,406
General and administrative		26,512			24,015			102,401			91,775
Loss on facility sublease		2,393			—			2,393			—
Total		203,205			188,044			797,449			714,776
Income from operations		125,181			111,834			430,818			426,303
Other income, net		732			909			7,274			5,911
Income before income taxes		125,913			112,743			438,092			432,214
Provision for income taxes		49,682			45,026			160,778			157,028
Net Income	$	76,231		$	67,717		$	277,314		$	275,186
Net income per share - basic	$	0.97		$	0.86		$	3.53		$	3.48
Weighted average shares - basic		78,353			78,980			78,565			79,135
Net income per share - diluted	$	0.97		$	0.85		$	3.50		$	3.45
Weighted average shares - diluted		78,674			79,425			79,136			79,780
Non-GAAP Financial Measures
Net income as reported	$	76,231		$	67,717		$	277,314		$	275,186
Stock-based compensation expense (4)		22,031			26,343			104,212			95,348
Amortization of purchased intangible assets (5)		1,033			1,610			4,131			4,843
Acquisition-related charges (5)		—			—			—			750
Loss on facility sublease		2,393			—			2,393			—
Tax effects related to above items		(2,538	)		(6,965	)		(25,114	)		(27,495	)
Net income excluding stock-based compensation, amortization of purchased intangible assets, acquisition-related charges and loss on facility sublease (non-GAAP) - diluted	$	99,150		$	88,705		$	362,936		$	348,632
Net income per share excluding stock-based compensation, amortization of purchased intangible assets, acquisition-related charges and loss on facility sublease (non-GAAP) - diluted	$	1.26		$	1.12		$	4.59		$	4.37
Weighted average shares - diluted		78,674			79,425			79,136			79,780
(1)    Includes stock-based compensation as follows:
Cost of net revenues	$	2,258		$	3,082		$	11,118		$	10,910
Sales and marketing		7,945			10,043			39,478			36,988
Research and development		7,638			8,036			32,668			27,876
General and administrative		4,190			5,182			20,948			19,574
	$	22,031		$	26,343		$	104,212		$	95,348
(2)    Includes amortization of purchased intangible assets as follows:
Cost of net revenues	$	958		$	1,458		$	3,831		$	4,361
Sales and marketing		75			152			300			482
	$	1,033		$	1,610		$	4,131		$	4,843
(3)    Includes acquisition-related charges as follows:
General and administrative	$	—		$	—		$	—		$	750
	$	—		$	—		$	—		$	750
(4)    Stock-based compensation is accounted for in accordance with the fair value recognition provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation (“FASB ASC Topic 718”)
(5)    Beginning with the second quarter of fiscal 2012, the company will exclude amortization of purchased intangible assets and acquisition-related charges in addition to stock-based compensation expense as a non-GAAP financial measure

F5 Networks, Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

	Years Ended
	September 30,
	2013			2012
Operating activities
Net income	$	277,314		$	275,186
Adjustments to reconcile net income to net cash provided by operating activities:
Realized (gain) loss on disposition of assets and investments		(187	)		546
Stock-based compensation		104,212			95,348
Provisions for doubtful accounts and sales returns		1,025			1,572
Depreciation and amortization		40,005			35,139
Deferred income taxes		474			(4,293	)
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		(18,867	)		(20,207	)
Inventories		(1,617	)		(262	)
Other current assets		(3,614	)		(998	)
Other assets		683			(134	)
Accounts payable and accrued liabilities		16,790			9,953
Deferred revenue		83,475			103,587
Net cash provided by operating activities		499,693			495,437
Investing activities
Purchases of investments		(938,571	)		(1,059,853	)
Maturities of investments		613,927			784,601
Sales of investments		212,011			81,444
Increase in restricted cash		(612	)		(19	)
Acquisition of intangible assets		—			(250	)
Acquisition of businesses, net of cash acquired		(212,642	)		(128,335	)
Purchases of property and equipment		(26,583	)		(29,867	)
Net cash used in investing activities		(352,470	)		(352,279	)
Financing activities
Excess tax benefit from stock-based compensation		4,091			10,371
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan		29,591			25,174
Repurchase of common stock		(200,000	)		(184,776	)
Net cash used in financing activities		(166,318	)		(149,231	)
Net decrease in cash and cash equivalents		(19,095	)		(6,073	)
Effect of exchange rate changes on cash and cash equivalents		(2,393	)		470
Cash and cash equivalents, beginning of period		211,181			216,784
Cash and cash equivalents, end of period	$	189,693		$	211,181