Fortinet Reports Strong Third Quarter 2014 Financial Results
November 3, 2014 (Mon): Fortinet, a global leader in high-performance network security, has announced financial results for the third quarter ended September 30, 2014.
“We are pleased to report another strong quarter that exceeded expectations, as we continued to execute well against our growth strategy and benefit from security market demand and customer adoption of new Fortinet products,” said Ken Xie, founder, chairman and chief executive officer. “Our investments in sales and marketing have continued to pay off evidenced by another quarter of traction in both new customer wins, as well as expansion within our existing large and growing global customer base. We currently believe that Fortinet remains well positioned for the remainder of the year and into 2015.”
Financial Highlights for the Third Quarter of 2014
- Billings: Total billings were US$213.2 million for the third quarter of 2014, an increase of 29% compared to US$165.2 million in the same quarter of 2013.
- Revenue: Total revenue was US$193.3 million for the third quarter of 2014, an increase of 25% compared to US$154.7 million in the same quarter of 2013. Within total revenue, product revenue was US$87.7 million, an increase of 26% compared to the same quarter of 2013. Services and other revenue was US$105.6 million, an increase of 24% compared to the same quarter of 2013.
- Deferred Revenue: Total deferred revenue was US$500.0 million as of September 30, 2014, an increase of 25% compared to deferred revenue of US$400.2 million as of September 30, 2013, and an increase of US$19.8 million from US$480.2 million as of June 30, 2014.
- Cash and Cash Flow: As of September 30, 2014, cash, cash equivalents and investments were US$963.8 million, compared to US$910.6 million as of June 30, 2014. In the third quarter of 2014, cash flow from operations was US$56.5 million and free cash flow1 was US$50.7 million.
- GAAP Operating Income: GAAP operating income was US$15.5 million for the third quarter of 2014, representing a GAAP operating margin of 8%. GAAP operating income was US$18.3 million for the same quarter of 2013, representing a GAAP operating margin of 12%.
- GAAP Net Income and Diluted Net Income Per Share: GAAP net income was US$4.1 million for the third quarter of 2014, compared to GAAP net income of US$11.0 million for the same quarter of 2013. GAAP diluted net income per share was US$0.02 for the third quarter of 2014, compared to US$0.07 for the same quarter of 2013.
- Non-GAAP Operating Income1: Non-GAAP operating income was US$30.4 million for the third quarter of 2014, representing a non-GAAP operating margin of 16%. Non-GAAP operating income was US$30.5 million for the same quarter of 2013, representing a non-GAAP operating margin of 20%.
- Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was US$20.0 million for the third quarter of 2014, compared to non-GAAP net income of US$20.5 million for the same quarter of 2013. Non-GAAP diluted net income per share was US$0.12 for the third quarter of 2014, consistent with the same quarter of 2013.
