FFIV F5 Networks, Inc.

Risks

• Our business could be adversely impacted by conditions affecting the information technology market
• Cloud-based computing trends present competitive and execution risks
• Industry consolidation may result in increased competition
• We may not be able to compete effectively in the emerging application services market
• Our success depends on our timely development of new products and features, market acceptance of new product offerings and proper management of the timing of the life cycle of our products
• Our success depends on sales and continued innovation of our Application Delivery Controller and Application Security product lines
• Security vulnerabilities in our IT systems or products as well as unforeseen product errors could have a material adverse impact on our business results of operations, financial condition and reputation
• We are dependent on various information technology systems, and failures of or interruptions to those systems could harm our business
• Our failure to adequately protect personal information could have a material adverse effect on our business
• Our success depends on our key personnel and our ability to hire, retain and motivate qualified executives, sales and marketing, operations, product development and professional services personnel
• The average selling price of our products may decrease and our costs may increase, which may negatively impact revenues and profits
• Our business may be harmed if our contract manufacturers are not able to provide us with adequate supplies of our products or if a single source of hardware assembly is lost or impaired
• Our business could suffer if there are any interruptions or delays in the supply of hardware components from our third-party sources
• It is difficult to predict our future operating results because we have an unpredictable sales cycle
• We may not be able to sustain or develop new distribution relationships, and a reduction or delay in sales to significant distribution partners could hurt our business
• A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks
• Misuse of our products could harm our reputation
• Our quarterly and annual operating results may fluctuate in future periods, which may cause our stock price to fluctuate
• Reliance on shipments at the end of the quarter could cause our revenue for the applicable period to fall below expected levels
• Changes in financial accounting standards may cause adverse unexpected revenue fluctuations and affect our reported results of operations
• If we are unable to maintain effective internal control over financial reporting, the accuracy and timeliness of our financial reporting may be adversely affected
• We may have exposure to greater than anticipated tax liabilities
• We are subject to governmental export and import controls that could subject us to liability or impair our ability to compete in international markets
• We may not be able to adequately protect our intellectual property, and our products may infringe on the intellectual property rights of third parties
• Our operating results are exposed to risks associated with international commerce
• We are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and results of operations
• Changes in governmental regulations could negatively affect our revenues
• Acquisitions present many risks and we may not realize the financial and strategic goals that are contemplated at the time of the transaction
• Anti-takeover provisions could make it more difficult for a third party to acquire us
• Our stock price could be volatile, particularly during times of economic uncertainty and volatility in domestic and international stock markets
• If securities or industry analysts publish inaccurate or unfavorable research about our business, or discontinue publishing research about our business, the price and trading volume of our securities could decline
• We face risks associated with having operations and employees located in Israel
• Our business is subject to the risks of earthquakes, fire, power outages, floods, and other catastrophic events, and to interruption by man-made problems such as terrorism
• In addition to other risks listed in this “Risk Factors” section, factors that may affect our operating results include, but are not limited to: