F5 Networks Inc (FFIV)’s First Quarter 2015 Earnings Conference Call Transcript

Tim Long, BMO Capital Markets

Thanks you. I will try to sneak two in here if I could. First on the Good, Better, Best. Just love an update there. You’ve talked a little bit about it in the past. We know the Best option is doing well. Could you talk little bit about the metrics there? How broadly is it through the sales force now? Is it fully everywhere? How many deals is it influencing? Are we still seeing growth from that or we starting to reach a more full penetration? And then the second one John I think you mentioned something about factoring the largest deals little bit more into next quarter, I guess part of that is conservatism. But I am just curious if given the uncertain macro, are you also as a team factoring in the rest of the business, the sub $100 million deals more than normal as well in the guidance?

John McAdam, President and Chief Executive Officer

So on the Good, Better, Best, the metrics are very similar. I mentioned still gravitating greatly towards Best. In fact I think this quarter we’re even higher in terms of a percentage towards Best. And if you look at where we are in the process, North America was forced out out of Houston, and they have been pretty aggressive in selling that. We started in a couple of quarters later when the quarters one to two quarters later seeing EMEA starting, but they’ve got more room to do it and catch up. And then APAC and Japan in particular so tend to lag a little bit with making changes like that. So we expect that to start to rave up in the future as well. In terms of the factoring, yes, actually when we do our factoring, we don’t intend to just factor by size of deal, we look at the overall factor, we look at the pipe of pipeline and we look at close rate expectation. So that tends us to run rate across the low deals up to the high deals as well.

Tim Long, BMO Capital Markets

Okay, thank you.

John Eldridge, Director of Investor Relations

Okay, thank you very much for turning in. And we look forward to talking with you again next quarter.

Operator

Thank you. That does conclude the call for today. You may disconnect your phone lines at this time.