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Comunicado de prensa

Fortinet Reports Third Quarter 2016 Financial Results

  • Revenue of $316.6 million, up 22% year over year
  • Billings of $347.5 million, up 16% year over year1
  • GAAP diluted net income per share $0.04
  • Non-GAAP diluted net income per share of $0.181
  • Cash flow from operations of $76.1 million
  • Free cash flow of $70.2 million1
  • Cash, cash equivalents and investments of $1.27 billion2
  • Deferred revenue of $934.8 million, up 32% year over year

 

SUNNYVALE, Calif. - October 27, 2016 - Fortinet® (NASDAQ: FTNT), a global leader in high performance cyber security solutions, today announced financial results for the third quarter ended September 30, 2016.

“While our third quarter results were impacted by a moderated spending environment, extended sales cycles and sales execution challenges, we continued to outgrow the market, as well as add 9,000 new customers,” stated Ken Xie, founder, chairman and chief executive officer. “Fortinet remains in a position to benefit from key secular trends such as security vendor consolidation and next generation cloud architectures. We have a strong technology advantage and visionary roadmap in place to help us continue to grow our market position, address our large opportunity, and make progress towards achieving our long term margin targets.”

Financial Highlights for the Third Quarter of 2016

  • Revenue: Total revenue was $316.6 million for the third quarter of 2016, an increase of 22% compared to $260.1 million in the same quarter of 2015. Within total revenue, product revenue was $128.0 million, an increase of 7% compared to $119.7 million in the same quarter of 2015. Service revenue was $188.7 million, an increase of 34% compared to $140.3 million in the same quarter of 2015.

  • Billings1: Total billings were $347.5 million for the third quarter of 2016, an increase of 16% compared to $299.6 million in the same quarter of 2015.

  • Deferred Revenue: Total deferred revenue was $934.8 million as of September 30, 2016, an increase of 32% compared to $706.9 million in the same quarter of 2015. Total deferred revenue increased by $30.8 million compared to $904.0 million as of June 30, 2016.

  • Cash2 and Cash Flow: As of September 30, 2016, cash, cash equivalents and investments were $1.27 billion, compared to $1.22 billion as of June 30, 2016. In the third quarter of 2016, cash flow from operations was $76.1 million compared to $65.1 million in the same quarter of 2015. Free cash flow1 was $70.2 million during the third quarter of 2016 compared to $51.7 million in the same quarter of 2015.

  • GAAP Operating Income or Loss: GAAP operating income was $5.5 million for the third quarter of 2016, representing a GAAP operating margin of 2%. GAAP operating loss was $1.8 million in the same quarter of 2015, representing a GAAP operating margin of -1%. 

  • Non-GAAP Operating Income1: Non-GAAP operating income was $45.9 million for the third quarter of 2016, representing a non-GAAP operating margin of 15%. Non-GAAP operating income was $36.4 million in the same quarter of 2015, representing a non-GAAP operating margin of 14%.
     
  • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $6.3 million for the third quarter of 2016, compared to GAAP net income of $8.2 million for the same quarter of 2015. GAAP diluted net income per share was $0.04 for the third quarter of 2016. GAAP diluted net income per share was $0.05 in the third quarter of 2015.

  • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $32.2 million for the third quarter of 2016, compared to non-GAAP net income of $24.1 million for the same quarter of 2015.  Non-GAAP diluted net income per share was $0.18 for the third quarter of 2016, compared to $0.14 in the same quarter of 2015.


1 A reconciliation of GAAP to non-GAAP financial and liquidity measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

2 During the third quarter of 2016, we repurchased $25.0 million of our common stock under our share repurchase program. During the third quarter of 2015, there were no shares repurchased under our share repurchase program.

Conference Call Details
Fortinet will host a conference call today, October 27, 2016, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its financial results. To access this call, dial (877) 303-6913 (domestic) or (224) 357-2188 (international) with conference ID # 92898989. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet's website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events.cfm.  A replay of this conference call can also be accessed through November 3, 2016, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) with conference ID# 92898989.

Following Fortinet's financial results conference call, the Company will host an additional question-and-answer session at 3:30 p.m. Pacific Time (6:30 p.m. Eastern Time) to provide an opportunity for financial analysts and investors to ask more detailed questions. To access this call, dial (877) 303-6913 (domestic) or (224) 357-2188 (international) with conference ID # 92905958. This follow-up call will be webcast live and accessible at https://investor.fortinet.com, and a replay will be archived and available after the call at https://investor.fortinet.com/events.cfm. A replay of this conference call will also be available through November 3, 2016 by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) with conference ID # 92905958.


Read the full press release (includes financial tables)

About Fortinet

Fortinet (NASDAQ: FTNT) secures the largest enterprise, service provider, and government organizations around the world. Fortinet empowers its customers with intelligent, seamless protection across the expanding attack surface and the power to take on ever-increasing performance requirements of the borderless network - today and into the future. Only the Fortinet Security Fabric architecture can deliver security without compromise to address the most critical security challenges, whether in networked, application, cloud or mobile environments. Fortinet ranks #1 in the most security appliances shipped worldwide and more than 280,000 customers trust Fortinet to protect their businesses. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

Copyright © 2016 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and unregistered trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks include, but are not limited to, the following: Fortinet, FortiGate, FortiGuard, FortiManager, FortiMail, FortiClient, FortiCloud, FortiCare, FortiAnalyzer, FortiReporter, FortiOS, FortiASIC, FortiWiFi, FortiSwitch, FortiVoIP, FortiBIOS, FortiLog, FortiResponse, FortiCarrier, FortiScan, FortiAP, FortiDB, FortiVoice and FortiWeb. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, binding specification or other binding commitment by Fortinet, and performance and other specification information herein may be unique to certain environments. This news release contains forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.