What is the significance of Palo Alto Networks being an "emerging growth company"?

As an "emerging growth company" under the JOBS Act, Palo Alto Networks can take advantage of exemptions from certain reporting requirements applicable to larger public companies. This can include reduced disclosure obligations and exemptions from auditor attestation requirements for internal controls over financial reporting. However, investors should be aware that these exemptions might make the stock less attractive to some, potentially affecting trading market liquidity and stock price volatility.

Why did Palo Alto Networks opt out of the extended transition period for new accounting standards?

Palo Alto Networks has chosen to "opt out" of the extended transition period for complying with new or revised accounting standards. This means they will adopt new accounting standards on the same schedule as non-emerging growth companies. This decision is irrevocable and suggests a commitment to transparency and timely adoption of accounting practices, which can be viewed positively by investors seeking consistent financial reporting.

What has been the use of proceeds from the company's IPO?

The company states that there have been no material changes in the planned use of proceeds from its IPO, as described in the final prospectus filed in July 2012. The IPO, which closed in July 2012, raised approximately $215.4 million in net proceeds for the company after accounting for underwriting fees and expenses.

What are the implications of the company's corporate governance provisions?

Palo Alto Networks has implemented provisions within its charter documents, such as a classified board of directors with staggered three-year terms. These measures are designed to delay or prevent a change in control of the company. While this can provide management stability, it may also make it more difficult for shareholders to effect changes in board composition or corporate strategy.

PANW 10-Q Quarterly Report Q2 FY2013 — Revenue, Net Income, EPS

Summary

Palo Alto Networks (PANW) filed its quarterly report for the period ending January 30, 2013, providing insights into its operational status post-Initial Public Offering (IPO). As an "emerging growth company" under the JOBS Act, PANW continues to leverage certain regulatory exemptions, although it has opted out of the extended transition period for adopting new accounting standards, committing to compliance with new standards as they are issued. The company reiterated its IPO plans and disclosed that the use of proceeds has remained consistent with the prospectus filed in July 2012, with no material changes. The report also highlights potential impacts on stock price and trading volume due to analyst coverage and mentions provisions within its charter documents that could deter takeover attempts and entrench management. While specific financial performance metrics for the quarter are not detailed in the provided excerpt, the focus is on the company's reporting status and its strategic decisions regarding regulatory compliance and corporate governance. Investors should note the company's proactive approach to accounting standard adoption and its awareness of factors influencing market perception, such as analyst reports. The disclosure regarding anti-takeover provisions is also a key point for long-term investors considering corporate control dynamics.

Financial Highlights

48 data points

Beta

Revenue

$96.50M

0.7% Gross Margin

Net Income

-$2.61M

-0.0% Net Margin

EPS (Diluted)

$-0.01

Total Assets

$490.15M

Cash & Equivalents

$187.92M

Free Cash Flow

$34.51M

Financial Statements

Beta

Revenue	$96.50M
Cost of Revenue	$27.62M
Gross Profit	$68.88M
R&D Expenses	$15.49M
Operating Expenses	$71.04M
Operating Income	-$2.16M
Interest Expense	$7K
Net Income	-$2.61M
EPS (Basic)	$-0.01
EPS (Diluted)	$-0.01
Shares Outstanding (Basic)	405.91M

Key Highlights

1Palo Alto Networks (PANW) is operating as an "emerging growth company" under the JOBS Act, utilizing certain exemptions from reporting requirements.
2The company has irrevocably opted out of the extended transition period for complying with new or revised accounting standards, committing to full compliance.
3Use of proceeds from the July 2012 IPO remains consistent with the company's final prospectus, with no material changes reported.
4Total gross proceeds from the IPO were approximately $299.5 million, with net proceeds received by the company totaling $215.4 million.
5The company acknowledges that the absence or inaccuracy of analyst reports could negatively impact its stock price and trading volume.
6Provisions in the company's charter documents, including a classified board, are in place that could delay or prevent a change in control.
7No payments were made to directors, officers, 10% shareholders, or affiliates related to the IPO's use of proceeds.

Palo Alto Networks Inc Quarterly Report for Q2 Ended Jan 31, 2013

Summary

Financial Highlights

Key Highlights

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