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The company’s product revenues dipped by 7% to $325 million due to a decrease in Systems sales. This downturn was mitigated by an increase in Software sales. On the other hand, Global Service revenues saw a 9% increase, reaching $382 million. This growth was primarily driven by price increases and high-maintenance renewals.
Regionally, sales growth was recorded in EMEA and APAC, however, the Americas experienced a decline. Despite this mixed regional performance, the firm ended the quarter with a healthy balance sheet of $808 million in cash and short-term investments.
The company also generated an operating cash flow of $190 million and repurchased shares worth $60 million. Both GAAP and non-GAAP gross margins expanded by 120bps and 130bps respectively, contributing to a surge in operating profit by 59.3%.
Looking ahead, F5 Networks has provided an optimistic projection for fiscal 2024. The company expects non-GAAP revenues to be between $675-$695 million with share-based compensation expenses likely to be within the range of $58 -$60 million. The effective tax rate is anticipated to be between 21%-23%.
In line with its shareholder-friendly approach, the company plans to return at least 50% of its fiscal 2024 free cash flow to shareholders through share buybacks. This reaffirms F5 Networks’ commitment towards enhancing shareholder value while maintaining a robust financial position for future growth.
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