PRESS RELEASE

F5 Reports 4% Revenue Growth in its Fiscal Third Quarter, Including 38% Software Revenue Growth

Published July 25, 2022

PRESS CONTACTS

Suzanne DuLong
VP, Investor Relations
(206) 272-7049
s.dulong@f5.com

Rob Gruening
F5 Corporate Communications
(206) 272-6208
r.gruening@f5.com

SEATTLE -- F5, Inc. (NASDAQ: FFIV) today announced financial results for its fiscal third quarter ended June 30, 2022.

“Customers depend on F5 to secure and deliver extraordinary digital experiences that drive their businesses and fuel their brands,” said François Locoh-Donou, F5’s President and CEO. “Demand for security across all customer verticals fueled sales in our third quarter resulting in 4% total revenue growth despite ongoing semiconductor shortages.”

Third Quarter Performance Summary

Third quarter fiscal year 2022 revenue grew 4% from the year ago period, to $674 million, up from $652 million in fiscal year 2021. Product revenue grew 5% from the year-ago period including 38% software revenue growth. Systems revenue declined 18% from the year-ago period as a result of ongoing semiconductor shortages. Global services revenue grew 2% from the year-ago period.

GAAP net income for the third quarter of fiscal year 2022 was $83 million, or $1.37 per diluted share compared to third quarter fiscal year 2021 GAAP net income of $90 million, or $1.46 per diluted share.

Non-GAAP net income for the third quarter of fiscal year 2022 was $155 million, or $2.57 per diluted share, compared to $169 million, or $2.76 per diluted share, in the third quarter of fiscal year 2021.

A reconciliation of net income on a GAAP to non-GAAP basis is included in the attached Consolidated Income Statements. Additional information about non-GAAP financial information is included in this release.

Business Outlook

“We saw strong demand in our third quarter, and we have a strong fourth quarter pipeline. At the same time, we are cognizant of the broader, more cautious environment we are operating in,” said Locoh-Donou. “With our intense business transformation efforts over the last five years, we have built a stronger and more resilient F5, as evidenced by our 72 percent revenue from recurring sources in the quarter. As a result, we have increased confidence in our ability to deliver sustained revenue and earnings growth.”

For the fourth quarter of fiscal year 2022, F5 expects to deliver revenue in the range of $680 million to $700 million, with non-GAAP earnings in the range of $2.45 to $2.57 per diluted share.

All forward-looking non-GAAP measures included in the Company’s business outlook exclude estimates for amortization of intangible assets, share-based compensation expenses, significant effects of tax legislation and judicial or administrative interpretation of tax regulations (including the impact of income tax reform), non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions, and do not include the impact of any future acquisitions or divestitures, acquisition-related charges and write-downs, restructuring charges, facility exit costs, or other non-recurring charges that may occur in the period. F5 is unable to provide a reconciliation of non-GAAP earnings guidance measures to corresponding U.S. generally accepted accounting principles or GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Certain exclusions, such as amortization of intangible assets and share-based compensation expenses, are generally incurred each quarter, but the amounts have historically varied and may continue to vary significantly from quarter to quarter.

$1 Billion Authorized for Share Repurchases

F5 also announced today that its Board of Directors has authorized an additional $1 billion for its common stock repurchase program. This new authorization is incremental to the $272 million remaining in the existing program.

Live Webcast and Conference Call

F5 will host a live webcast and conference call to review its financial results and outlook today, July 25, 2022, at 4:30 pm ET. The live webcast can be accessed from the investor relations portion of F5.com. To participate in the live call via telephone in the U.S. and Canada, dial +1 (888) 396-8049. Outside the U.S. and Canada, dial +1 (416) 764-8646. Please call at least 5 minutes prior to the call start time. The webcast replay will be archived on the investor relations portion of F5’s website.

Forward Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the continuing strength and momentum of F5’s business, future financial performance including revenue, revenue growth and earnings growth; demand for application security and delivery services, and software products; expectations regarding availability of future supply, future customer demand, markets, and the benefits of products; and other statements that are not historical facts are forward-looking statements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors. 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 offerings; potential disruptions to F5’s business and distraction of management as F5 integrates acquired businesses, teams, and technologies; F5’s ability to successfully integrate acquired businesses’ products with F5 technologies; the ability of F5’s sales professionals and distribution partners to sell acquired businesses’ product and service offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into F5’s markets, and new product and marketing initiatives by our competitors; increased sales discounts; the business impact of the acquisitions and potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of completion of acquisitions; uncertain global economic conditions which may result in reduced customer demand for our products and services and changes in customer payment patterns; continued disruptions to the global supply chain resulting in inability to source required parts for F5’s products or the ability to only do so at greatly increased prices thereby impacting our revenues and/or margins; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; litigation involving patents, intellectual property, shareholder and other matters, and governmental investigations; potential security flaws in the Company’s networks, products or services; cybersecurity attacks on its networks, products or services; natural catastrophic events; a pandemic or epidemic; 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 ability of F5 to execute on its share repurchase program including the timing of any repurchases; 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, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K and other documents that we may file or furnish from time to time, which could cause actual results to vary from expectations. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in F5’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. 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.

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 GAAP net income excluding, as applicable, stock-based compensation, amortization of purchased intangible assets, acquisition-related charges, net of taxes, restructuring charges, facility-exit costs, significant litigation and other contingencies and certain non-recurring tax expenses and benefits, which is a non-GAAP financial measure under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. 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.

The non-GAAP adjustments, and F5's basis for excluding them from non-GAAP financial measures, are outlined below:

Acquisition-related write-downs of assumed deferred revenue.Included in its GAAP financial statements, F5 records acquisition-related write-downs of assumed deferred revenue to fair value, which results in lower recognized revenue over the term of the contract. F5 includes revenue associated with acquisition-related write-downs of assumed deferred revenue in its non-GAAP financial measures as management believes it provides a more accurate depiction of revenue arising from our strategic acquisitions.

Stock-based compensation. Stock-based compensation consists of expense for stock options, restricted stock, and employee stock purchases through the Company’s Employee Stock Purchase Plan. Although stock-based compensation is an important aspect of the compensation of F5’s employees and executives, management believes it is useful to exclude stock-based compensation expenses to better understand the long-term performance of the Company’s core business and to facilitate comparison of the Company’s results to those of peer companies.

Amortization and impairment of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives, and generally cannot be changed or influenced by management after the acquisition. On a non-recurring basis, when certain events or circumstances are present, management may also be required to write down the carrying value of its purchased intangible assets and recognize impairment charges. Management does not believe these charges accurately reflect the performance of the Company’s ongoing operations, therefore, they are not considered by management in making operating decisions. However, investors should note that the use of intangible assets contributed to F5’s revenues earned during the periods presented and will contribute to F5’s future period revenues as well.

Facility-exit costs.F5 has incurred charges in connection with the exit of facilities as well as other non-recurring lease activity. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Acquisition-related charges, net. F5 does not acquire businesses on a predictable cycle and the terms and scope of each transaction can vary significantly and are unique to each transaction. F5 excludes acquisition-related charges from its non-GAAP financial measures to provide a useful comparison of the Company’s operating results to prior periods and to its peer companies. Acquisition-related charges consist of planning, execution and integration costs incurred directly as a result of an acquisition.

Impairment charges.In fiscal year 2021, F5 recorded impairment charges related to the permanent exit of certain floors at its Seattle headquarters. These charges are not representative of ongoing costs to the business and are not expected to recur. As a result, these charges are being excluded to provide investors with a more comparable measure of costs associated with ongoing operations.

Restructuring charges. F5 has incurred restructuring charges that are included in its GAAP financial statements, primarily related to workforce reductions and costs associated with exiting facility-lease commitments. F5 excludes these items from its non-GAAP financial measures when evaluating its continuing business performance as such items vary significantly based on the magnitude of the restructuring action and do not reflect expected future operating expenses. In addition, these charges do not necessarily provide meaningful insight into the fundamentals of current or past operations of its business.

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 measures of earnings and earnings per share provides investors with an additional tool for evaluating the performance of the Company’s core business and is used by management 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 these supplemental measures since, with reconciliation to GAAP, it may provide additional insight into the Company’s operational performance and financial results.

For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section in our attached Condensed Consolidated Income Statements entitled “Non-GAAP Financial Measures.”

About F5

F5 (NASDAQ: FFIV) is a multi-cloud application security and delivery company that enables our customers—which include the world’s largest enterprises, financial institutions, service providers, and governments—to bring extraordinary digital experiences to life. For more information, go to f5.com. You can also follow @F5 on Twitter or visit us on LinkedIn and Facebook for more information about F5, its partners, and technologies.

F5 is a trademark, service mark, or tradename of F5, Inc., in the U.S. and other countries. All other product and company names herein may be trademarks of their respective owners.

         

F5, Inc.

Consolidated Balance Sheets

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

September 30,

 

 

 

2022

 

 

 

2021

 

         
Assets        
Current assets        
Cash and cash equivalents  

$

541,883

 

 

$

580,977

 

Short-term investments  

 

196,458

 

 

 

329,630

 

Accounts receivable, net of allowances of $5,879 and $3,696  

 

455,762

 

 

 

340,536

 

Inventories  

 

43,787

 

 

 

22,055

 

Other current assets  

 

451,035

 

 

 

337,902

 

Total current assets  

 

1,688,925

 

 

 

1,611,100

 

         
Property and equipment, net  

 

172,060

 

 

 

191,164

 

Operating lease right-of-use assets  

 

217,313

 

 

 

244,934

 

Long-term investments  

 

19,112

 

 

 

132,778

 

Deferred tax assets  

 

171,533

 

 

 

128,193

 

Goodwill  

 

2,259,951

 

 

 

2,216,553

 

Other assets, net  

 

492,395

 

 

 

472,558

 

Total assets  

$

5,021,289

 

 

$

4,997,280

 

         
Liabilities and Shareholders’ Equity        
Current liabilities        
Accounts payable  

$

73,420

 

 

$

62,096

 

Accrued liabilities  

 

291,605

 

 

 

341,487

 

Deferred revenue  

 

1,049,084

 

 

 

968,669

 

Current portion of long-term debt  

 

354,591

 

 

 

19,275

 

Total current liabilities  

 

1,768,700

 

 

 

1,391,527

 

         
Deferred tax liabilities  

 

2,794

 

 

 

2,414

 

Deferred revenue, long-term  

 

588,221

 

 

 

521,173

 

Operating lease liabilities, long-term  

 

265,043

 

 

 

296,945

 

Long-term debt  

 

-

 

 

 

349,772

 

Other long-term liabilities  

 

73,546

 

 

 

75,236

 

Total long-term liabilities  

 

929,604

 

 

 

1,245,540

 

         
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, 59,556 and 60,652 shares issued and outstanding  

 

32,851

 

 

 

192,458

 

Accumulated other comprehensive loss  

 

(24,626)

   

 

(20,073)

 
Retained earnings  

 

2,314,760

 

 

 

2,187,828

 

Total shareholders' equity  

 

2,322,985

 

 

 

2,360,213

 

Total liabilities and shareholders' equity

 

$

5,021,289

 

 

$

4,997,280

 

         

 

F5, Inc.

Consolidated Income Statements

(unaudited, in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

June 30,

 

June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

                 
Net revenues                
Products (1)  

$

326,482

 

 

$

309,929

 

 

$

967,149

 

 

$

907,163

 

Services  

 

348,006

 

 

 

341,586

 

 

 

1,028,663

 

 

 

1,014,256

 

Total  

 

674,488

 

 

 

651,515

 

 

 

1,995,812

 

 

 

1,921,419

 

                 
Cost of net revenues (2)(3)(4)(5)(6)                
Products  

 

73,558

 

 

 

68,974

 

 

 

226,454

 

 

 

209,301

 

Services  

 

57,175

 

 

 

51,930

 

 

 

165,711

 

 

 

155,167

 

Total  

 

130,733

 

 

 

120,904

 

 

 

392,165

 

 

 

364,468

 

Gross profit  

 

543,755

 

 

 

530,611

 

 

 

1,603,647

 

 

 

1,556,951

 

                 
Operating expenses (2)(3)(4)(5)(6)                
Sales and marketing  

 

226,731

 

 

 

237,375

 

 

 

689,592

 

 

 

696,829

 

Research and development  

 

138,737

 

 

 

133,283

 

 

 

404,846

 

 

 

387,927

 

General and administrative  

 

70,823

 

 

 

63,541

 

 

 

205,038

 

 

 

204,534

 

Restructuring charges  

 

-

 

 

 

-

 

 

 

7,909

 

 

 

-

 

Total  

 

436,291

 

 

 

434,199

 

 

 

1,307,385

 

 

 

1,289,290

 

                 
Income from operations  

 

107,464

 

 

 

96,412

 

 

 

296,262

 

 

 

267,661

 

Other income, net  

 

(6,221)

 

 

 

(2,163)

 

 

 

(10,586)

 

 

 

(4,223)

 

Income before income taxes  

 

101,243

 

 

 

94,249

 

 

 

285,676

 

#

 

263,438

 

Provision for income taxes  

 

18,224

 

 

 

4,645

 

 

 

52,862

 

 

 

42,915

 

Net income  

$

83,019

 

 

$

89,604

 

 

$

232,814

 

 

$

220,523

 

                 
                 
Net income per share - basic  

$

1.38

 

 

$

1.49

 

 

$

3.85

 

 

$

3.63

 

Weighted average shares - basic  

 

59,965

 

 

 

60,186

 

 

 

60,450

 

 

 

60,768

 

                 
Net income per share - diluted  

$

1.37

 

 

$

1.46

 

 

$

3.80

 

 

$

3.55

 

Weighted average shares - diluted  

 

60,460

 

 

 

61,351

 

 

 

61,345

 

 

 

62,064

 

                 
                 
Non-GAAP Financial Measures                
                 
Net income as reported  

$

83,019

 

 

$

89,604

 

 

$

232,814

 

 

$

220,523

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

-

 

 

 

-

 

 

 

1,283

 

Stock-based compensation expense  

 

61,875

 

 

 

61,468

 

 

 

189,761

 

 

 

182,757

 

Amortization and impairment of purchased intangible assets  

 

12,701

 

 

 

12,931

 

 

 

44,988

 

 

 

35,843

 

Facility-exit costs  

 

1,750

 

 

 

4,472

 

 

 

8,010

 

 

 

10,873

 

Acquisiton-related charges  

 

10,224

 

 

 

23,584

 

 

 

40,081

 

 

 

69,227

 

Impairment charges  

 

-

 

 

 

-

 

 

 

-

 

 

 

33,825

 

Restructuring charges  

 

-

 

 

 

-

 

 

 

7,909

 

 

 

-

 

Tax effects related to above items  

 

(14,427)

 

 

 

(22,943)

 

 

 

(58,587)

 

 

 

(68,604)

 

Net income excluding acquisition-related write-downs of assumed deferred revenue, stock-based compensation expense, amortization and impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, impairment charges and restructuring charges (non-GAAP) - diluted  

$

155,142

 

 

$

169,116

 

 

$

464,976

 

 

$

485,727

 

                 

Net income per share excluding acquisition-related write-downs of assumed deferred revenue, stock-based compensation expense, amortization and impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, impairment charges and restructuring charges (non-GAAP) - diluted

 

$

2.57

 

 

$

2.76

 

 

$

7.58

 

 

$

7.83

 

                 
Weighted average shares - diluted  

 

60,460

 

 

 

61,351

 

 

 

61,345

 

 

 

62,064

 

                 
(1) GAAP net product revenues  

$

326,482

 

 

$

309,929

 

 

$

967,149

 

 

$

907,163

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

-

 

 

 

-

 

 

 

1,283

 

Non-GAAP net product revenues  

 

326,482

 

 

 

309,929

 

 

 

967,149

 

 

 

908,446

 

GAAP net service revenues  

 

348,006

 

 

 

341,586

 

 

 

1,028,663

 

 

 

1,014,256

 

Acquisition-related write-downs of assumed deferred revenue  

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Non-GAAP net service revenues  

 

348,006

 

 

 

341,586

 

 

 

1,028,663

 

 

 

1,014,256

 

Total non-GAAP net revenues  

$

674,488

 

 

$

651,515

 

 

$

1,995,812

 

 

$

1,922,702

 

                 
(2) Includes stock-based compensation expense as follows:                
Cost of net revenues  

$

7,203

 

 

$

7,209

 

 

$

22,089

 

 

$

21,903

 

Sales and marketing  

 

25,572

 

 

 

26,399

 

 

 

79,938

 

 

 

78,682

 

Research and development  

 

17,502

 

 

 

17,342

 

 

 

54,318

 

 

 

50,046

 

General and administrative  

 

11,598

 

 

 

10,518

 

 

 

33,416

 

 

 

32,126

 

   

$

61,875

 

 

$

61,468

 

 

$

189,761

 

 

$

182,757

 

                 
(3) Includes amortization and impairment of purchased intangible assets as follows:                
Cost of net revenues  

$

9,960

 

 

$

9,507

 

 

$

29,878

 

 

$

25,688

 

Sales and marketing  

 

2,389

 

 

 

2,849

 

 

 

13,780

 

 

 

8,430

 

General and administrative  

 

352

 

 

 

575

 

 

 

1,330

 

 

 

1,725

 

   

$

12,701

 

 

$

12,931

 

 

$

44,988

 

 

$

35,843

 

                 
(4) Includes facility-exit costs as follows:                
Cost of net revenues  

$

62

 

 

$

770

 

 

$

1,155

 

 

$

1,926

 

Sales and marketing  

 

546

 

 

 

1,188

 

 

 

2,183

 

 

 

3,051

 

Research and development  

 

627

 

 

 

1,474

 

 

 

2,755

 

 

 

3,352

 

General and administrative  

 

515

 

 

 

1,040

 

 

 

1,917

 

 

 

2,544

 

   

$

1,750

 

 

$

4,472

 

 

$

8,010

 

 

$

10,873

 

                 
(5) Includes acquisition-related charges as follows:                
Cost of net revenues  

$

96

 

 

$

-

 

 

$

291

 

 

$

2,522

 

Sales and marketing  

 

2,493

 

 

 

8,525

 

 

 

12,266

 

 

 

23,213

 

Research and development  

 

5,479

 

 

 

11,681

 

 

 

17,170

 

 

 

25,120

 

General and administrative  

 

2,156

 

 

 

3,378

 

 

 

10,354

 

 

 

18,372

 

   

$

10,224

 

 

$

23,584

 

 

$

40,081

 

 

$

69,227

 

                 
(6) Includes impairment charges as follows:                
Cost of net revenues  

$

-

 

 

$

-

 

 

$

-

 

 

$

4,388

 

Sales and marketing  

 

-

 

 

 

-

 

 

 

-

 

 

 

10,256

 

Research and development  

 

-

 

 

 

-

 

 

 

-

 

 

 

9,845

 

General and administrative  

 

-

 

 

 

-

 

 

 

-

 

 

 

9,336

 

   

$

-

 

 

$

-

 

 

$

-

 

 

$

33,825

 

                 

 

F5, Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

June 30,

 

 

 

2022

 

 

 

2021

 

         
Operating activities        
Net income  

$

232,814

 

 

$

220,523

 

Adjustments to reconcile net income to net cash provided by operating activities:        
Stock-based compensation  

 

189,761

 

 

 

182,757

 

Depreciation and amortization  

 

88,398

 

 

 

84,985

 

Non-cash operating lease costs  

 

29,071

 

 

 

28,937

 

Deferred income taxes  

 

(28,956)

 

 

 

(78,092)

 

Impairment of assets  

 

6,175

 

 

 

40,698

 

Other  

 

585

 

 

 

604

 

Changes in operating assets and liabilities (excluding effects of the acquisition of businesses):        
Accounts receivable  

 

(116,137)

 

 

 

(88,685)

 

Inventories  

 

(21,732)

 

 

 

5,249

 

Other current assets  

 

(106,070)

 

 

 

(32,670)

 

Other assets  

 

(50,400)

 

 

 

(58,565)

 

Accounts payable and accrued liabilities  

 

(33,398)

 

 

 

13,586)

 

Deferred revenue  

 

136,872

 

 

 

167,199

 

Lease liabilities  

 

(38,707)

 

 

 

(38,383)

 

Net cash provided by operating activities

 

 

288,276

 

 

 

448,143

 

         
Investing activities        
Purchases of investments  

 

(58,514)

 

 

 

(255,259)

 

Maturities of investments  

 

178,372

 

 

 

164,900

 

Sales of investments  

 

120,564

 

 

 

271,521

 

Acquisition of businesses, net of cash acquired  

 

(67,911)

 

 

 

(411,319)

 

Purchases of property and equipment  

 

(25,117)

 

 

 

(23,534)

 

Net cash provided by (used in) investing activities  

 

147,394

 

 

 

(253,691)

 

         
Financing activities        
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan  

 

63,681

 

 

 

64,698

 

Repurchase of common stock  

 

(500,023)

 

 

 

(500,000)

 

Payments on term debt agreement  

 

(15,000)

 

 

 

(15,000)

 

Taxes paid related to net share settlement of equity awards  

 

(18,907)

 

 

 

(10,920)

 

Net cash used in financing activities  

 

(470,249)

 

 

 

(461,222)

 

         
Net decrease in cash, cash equivalents and restricted cash  

 

(34,579)

 

 

 

(266,770)

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash  

 

(3,633)

 

 

 

1,107

 

Cash, cash equivalents and restricted cash, beginning of period  

 

584,333

 

 

 

852,826

 

Cash, cash equivalents and restricted cash, end of period  

$

546,121

 

 

$

587,163

 

         
Supplemental disclosures of cash flow information        
Cash paid for amounts included in the measurement of lease liabilities  

$

44,115

 

 

$

46,178

 

Cash paid for interest on long-term debt  

 

4,287

 

 

 

4,003

 

Supplemental disclosures of non-cash activities        

Right-of-use assets obtained in exchange for lease obligations

 

$

614

 

 

$

11,622

 

# # #

This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC.