F5(US:FFIV)2025-05-06 17:47Revenue and Performance Obligations - As of March 31, 2025, the total non-cancelable remaining performance obligations under the Company's contracts with customers was $1.9 billion, with an expected revenue recognition of 62.4% over the next 12 months[38]. - The Company recognized revenues of $726.1 million related to the opening balance of deferred revenue during the six months ended March 31, 2025[37]. - The Company expects to recognize 22.9% of the remaining performance obligations in year two following the reporting date[38]. - The Company’s total revenues for the six months ended March 31, 2025, were $1,497.6 million, up from $1,373.9 million in the same period of 2024[89]. Deferred Revenue and Cash Flow - The balance of deferred revenue increased to $1.92 billion as of March 31, 2025, up from $1.81 billion at the end of the previous period[37]. - As of March 31, 2025, the Company reported total cash, cash equivalents, and restricted cash of $1,261,257,000, an increase from $1,078,340,000 as of September 30, 2024, representing a growth of approximately 16.9%[56]. Investments and Financial Instruments - Interest income from cash, cash equivalents, and investments was $9.3 million for the three months ended March 31, 2025, compared to $8.3 million for the same period in 2024[50]. - The fair value of total investments as of March 31, 2025, was $636.6 million, including $624.1 million in debt investments[47]. - The Company reported no credit losses on any investments within its portfolio as of March 31, 2025[51]. - The Company has updated its accounting policies for investments and fair value of financial instruments to include equity investments with no readily determinable fair value[28]. Acquisitions and Goodwill - The Company recorded $7.5 million of goodwill from an acquisition completed in the second quarter of fiscal 2025, which did not materially impact operating results[54]. - For the second quarter of fiscal 2024, the Company completed two acquisitions, resulting in $23.6 million of goodwill, with no material impact on operating results[55]. Inventory and Assets - Total inventories decreased from $76,378,000 as of September 30, 2024, to $67,880,000 as of March 31, 2025, reflecting a reduction of approximately 11.2%[57]. - Other current assets increased from $569,467,000 as of September 30, 2024, to $629,394,000 as of March 31, 2025, marking an increase of approximately 10.5%[58]. - The Company’s intangible assets decreased from $111,576,000 as of September 30, 2024, to $92,651,000 as of March 31, 2025, reflecting a decline of approximately 17%[59]. Liabilities and Lease Obligations - The Company’s total operating lease liabilities as of March 31, 2025, were $266,818,000, compared to $249,564,000 as of September 30, 2024, indicating an increase of approximately 6.9%[66]. - The Company’s accrued liabilities decreased from $300,076,000 as of September 30, 2024, to $279,910,000 as of March 31, 2025, a reduction of approximately 6.7%[60]. - Operating lease expenses for the three months ended March 31, 2025, were $16,656,000, slightly down from $16,779,000 for the same period in 2024[65]. - The Company expects to receive sublease income of $9.5 million, with $1.9 million expected for the remainder of fiscal 2025 and $7.6 million over the following eight fiscal years[67]. Tax and Audit - The effective tax rate for the three and six months ended March 31, 2025, was 15.0% and 18.0%, respectively, compared to 18.4% and 19.6% for the same periods in 2024, primarily due to non-recurring benefits related to foreign operations and stock-based compensation[80]. - As of March 31, 2025, the Company had $90.9 million of unrecognized tax benefits that could affect the effective tax rate if recognized[81]. - The Company is currently under audit by the Internal Revenue Service for fiscal year 2019 and various states for fiscal years 2018 through 2023, which may impact its financial condition[82]. Net Income and Share Repurchase - For the three months ended March 31, 2025, the Company reported net income of $145.5 million, resulting in a basic net income per share of $2.51 and diluted net income per share of $2.48[86]. - The Company repurchased 481,000 shares for $125.0 million at an average price of $259.46 per share during the three months ended March 31, 2025, with a total of $1,172.4 million remaining authorized for share repurchases[84]. Revenue by Region - Revenues from the Americas for the three months ended March 31, 2025, totaled $396.1 million, compared to $385.6 million in the same period of 2024, with the U.S. contributing $373.8 million[89]. Restructuring Charges - The Company recorded restructuring charges of $11.3 million for the three months ended December 31, 2024, compared to $9.8 million for the same period in 2023[90]. Major Customers - Major customers Ingram Micro, Inc. and Synnex Corporation accounted for 16.9% and 17.4% of total net revenue for the three months ended March 31, 2025, respectively[89].