Fortinet, Inc. Annual Report, Year Ended Dec 31, 2015

Fortinet, Inc. demonstrated robust growth in its fiscal year 2015, reporting a 31% increase in total revenue to $1.01 billion. This growth was fueled by strong performance in both product and service segments, with services revenue slightly outpacing product revenue. The company's strategy to focus on enterprise customers appears to be paying off, as evidenced by increased sales of high-end FortiGate products. Fortinet also saw significant growth in its deferred revenue balance, up 42% year-over-year, indicating strong future revenue potential. Operationally, Fortinet increased its investment in sales and marketing by 49% to drive further market share acquisition, particularly in the enterprise sector. This investment, along with continued R&D spending and headcount expansion (up 41%), led to a higher operating expense ratio compared to the previous year. Despite increased expenses, the company managed to grow its cash, cash equivalents, and investments by 17% to $1.16 billion, and generated substantial operating cash flow. The company also completed a strategic acquisition of Meru Networks to enhance its secure wireless offerings.