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10-QPeriod: Q3 FY2013

Palo Alto Networks Inc Quarterly Report for Q3 Ended Apr 30, 2013

Filed June 4, 2013For Securities:PANW

Summary

Palo Alto Networks Inc. (PANW) filed its quarterly report for the period ending April 29, 2013. As an 'emerging growth company,' PANW is leveraging certain exemptions under the JOBS Act, including reduced executive compensation disclosures and potential non-compliance with auditor attestation requirements of Sarbanes-Oxley Act Section 404. However, the company has irrevocably opted out of the extended transition period for new or revised accounting standards, meaning it will adopt them on the same schedule as non-emerging growth companies. This provides clarity for investors regarding financial reporting. Regarding the use of proceeds from its Initial Public Offering (IPO) in July 2012, PANW has made no material changes to its planned use as previously disclosed in its prospectus. The IPO generated gross proceeds of $299.5 million, with approximately $215.4 million in net proceeds after accounting for underwriting discounts, expenses, and proceeds to selling shareholders. No payments were made to directors, officers, 10% shareholders, or affiliates related to the IPO proceeds.

Financial Statements
Beta
Revenue$101.29M
Cost of Revenue$27.69M
Gross Profit$73.60M
R&D Expenses$16.05M
Operating Expenses$80.05M
Operating Income-$6.45M
Interest Expense$18K
Net Income-$7.28M
EPS (Basic)$-0.02
EPS (Diluted)$-0.02
Shares Outstanding (Basic)417.45M
Shares Outstanding (Diluted)417.45M

Key Highlights

  • 1Palo Alto Networks (PANW) is operating as an 'emerging growth company' and is utilizing JOBS Act exemptions.
  • 2The company has opted out of the extended transition period for new/revised accounting standards, demonstrating a commitment to timely adoption.
  • 3There have been no material changes in the planned use of IPO proceeds.
  • 4The IPO in July 2012 raised approximately $215.4 million in net proceeds for the company.
  • 5No payments from IPO proceeds were made to directors, officers, 10% shareholders, or affiliates.

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