F5 Networks Inc. –

SEATTLE – F5 Networks Inc., a provider of network server traffic management solutions, held an initial public offering June 4. The company offered 3 million shares at $10 apiece, the low end of its $10 to $12 filing range.

Hambrecht & Quist Inc., BancBoston Robertson Stephens and Dain Rauscher Wessels underwrote the IPO, which left 17.88 million shares outstanding.

Menlo Ventures VII, Cypress Partners, Encompass Ventures Inc., Pacific Technology Ventures U.S.A. and Alexander Hutton Capital were venture backers. Selling shareholders, which did not include any of the above investors, sold 140,000 shares.

F5’s products monitor and manage geographically dispersed servers and direct traffic to the one best able to handle a particular request. The company’s products also help prevent system failures and make it easier to provide prompt responses to user requests and data flow.

The $25.7 million generated by the IPO will be used to pay for increased sales and marketing efforts, research and development and technical support.

Kent Johnson, president of Alexander Hutton Capital, joined the company’s board of directors in May 1996, followed in August 1998 by Kimberly Davis, a general partner of IDG Ventures, the manager of Pacific Technology Ventures, and Sonja Hoel, a managing director and general partner of Menlo Ventures.


F% Networks – Selected Financial

(in thousands, except per share data)

February 26, 1996

(inception) to Fiscal year Ended September 30, Six Months Ended March 31,

September 30, 1996 1997 1998 1998* 1999*

Net revenue 2 229 4,889 1,837 6,457

Net loss -330 -1,456 -3,672 -1,046 -5,159

Net loss per share -0.06 -0.24 -0.60 -0.17 -0.82

*Unaudited