Summary
Fortinet, Inc. reported solid revenue growth of 26% year-over-year for the first quarter of 2012, reaching $117.2 million. This growth was driven by increases in both product and services revenue, with services showing a particularly strong 28% increase. The company also demonstrated healthy operational cash flow, increasing by 21% to $48.5 million. This financial performance reflects successful execution of their global sales strategy and ongoing product innovation. Fortinet ended the quarter with a strong cash position of $600.3 million, including cash, cash equivalents, and investments, up from the previous quarter. Deferred revenue also saw a significant increase of $19.7 million, indicating strong future revenue potential from subscription and support services. The company continues to invest in research and development and sales and marketing, with operating expenses growing by 29%, primarily due to increased headcount to support growth initiatives.
Financial Highlights
48 data points| Revenue | $117.25M |
| Cost of Revenue | $31.04M |
| Gross Profit | $86.20M |
| R&D Expenses | $19.67M |
| Operating Expenses | $67.49M |
| Operating Income | $18.71M |
| Net Income | $14.17M |
| EPS (Basic) | $0.02 |
| EPS (Diluted) | $0.02 |
| Shares Outstanding (Basic) | 780.05M |
| Shares Outstanding (Diluted) | 828.75M |
Key Highlights
- 1Total revenue increased by 26% to $117.2 million in Q1 2012 compared to Q1 2011.
- 2Product revenue grew by 32% and Services revenue by 28% year-over-year.
- 3Operating cash flow increased by 21% to $48.5 million in Q1 2012.
- 4Total cash, cash equivalents, and investments reached $600.3 million as of March 31, 2012.
- 5Deferred revenue increased by $19.7 million to $314.6 million, indicating strong future revenue visibility.
- 6The number of deals exceeding $100,000 increased significantly to 153 in Q1 2012 from 111 in Q1 2011.
- 7Research and development expenses increased by 36% to support product innovation and enhancements.