Palo Alto Networks Reports Fiscal First Quarter 2013 Financial Results
Total revenue for the fiscal first quarter grew 50 percent year-over-year to
"We delivered a strong first quarter, achieving 14% sequential revenue growth and expanding our customer base to over 10,000 customers," said
"We also continue to build on our technology lead with innovative and disruptive technology, which further differentiates us from the competition," continued McLaughlin.
Commenting on the company's financial results,
Recent Highlights
- Announced a strategic partnership with
Citrix and expanded the Technology Partner Program by adding RSA,SafeNet , Swivel,Bradford Networks , RedSeal, Skybox Security, Lancope, Interface Masters, and Garland Technology. - Extended its lead in next-generation network security by launching four new products:
- The VM-Series – a virtualized next-generation firewall platform launched in collaboration with
VMware that brings next-generation network security into the virtualized datacenter environment; - The WildFire™ modern malware prevention subscription, which sets the bar for the market that until now has only been focused on detection;
- The PA-3000 Series – a new, midrange next-generation firewall hardware platform; and
- The M-100 appliance – a dedicated high-performance management appliance.
- The VM-Series – a virtualized next-generation firewall platform launched in collaboration with
- Appointed
John Donovan , senior executive vice president of AT&T Technology and Network Operations, to its Board of Directors.
Conference Call Information
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding momentum in the company's business. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including:
Additional risks and uncertainties that could affect
Non-GAAP Financial Measures
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
Non-GAAP net income and diluted net income per share.
About
Palo Alto Networks™ is the network security company. Its innovative platform allows enterprises, service providers, and government entities to secure their networks and safely enable the increasingly complex and rapidly growing number of applications running on their networks. The core of
Palo Alto Networks, Inc. |
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Preliminary Condensed Consolidated Statements of Operations |
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(In thousands, except per share data) |
||
(Unaudited) |
||
Three Months Ended |
||
2012 |
2011 |
|
Revenue: |
||
Product |
$ 55,514 |
$ 42,861 |
Services |
30,420 |
14,252 |
Total revenue |
85,934 |
57,113 |
Cost of revenue: |
||
Product |
14,416 |
10,310 |
Services |
9,774 |
4,530 |
Total cost of revenue |
24,190 |
14,840 |
Total gross profit |
61,744 |
42,273 |
Operating expenses: |
||
Research and development |
13,312 |
7,848 |
Sales and marketing |
42,607 |
22,368 |
General and administrative |
8,956 |
5,157 |
Total operating expenses |
64,875 |
35,373 |
Operating income (loss) |
(3,131) |
6,900 |
Interest income |
98 |
2 |
Other expense, net |
(170) |
(464) |
Income (loss) before income taxes |
(3,203) |
6,438 |
Provision for income taxes |
312 |
2,322 |
Net income (loss) |
$ (3,515) |
$ 4,116 |
Net income (loss) attributable to |
$ (3,515) |
$ - |
Net income (loss) per share attributable to |
$ (0.05) |
$ 0.00 |
Weighted-average shares used to compute |
66,813 |
16,715 |
Palo Alto Networks, Inc. |
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Reconciliation of GAAP to Non-GAAP Financial Measures - Fiscal Quarter |
|||||||||||
(In thousands, except per share amounts) |
|||||||||||
(Unaudited) |
|||||||||||
Three Months Ended October 31, 2012 |
Three Months Ended October 31, 2011 |
||||||||||
GAAP |
Adjustments |
Non-GAAP |
GAAP |
Adjustments |
Non-GAAP |
||||||
Net income (loss) |
$ (3,515) |
$ 6,463 |
(a) |
$ 2,948 |
$ 4,116 |
$ 1,446 |
(b) |
$ 5,562 |
|||
Net income (loss) attributable to common stockholders: |
|||||||||||
Basic |
$ (3,515) |
$ 6,463 |
(a) |
$ 2,948 |
$ - |
$ 105 |
(c) |
$ 105 |
|||
Diluted |
$ (3,515) |
$ 6,463 |
(a) |
$ 2,948 |
$ - |
$ 128 |
(c) |
$ 128 |
|||
Net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
$ (0.05) |
$ 0.09 |
(a) |
$ 0.04 |
$ 0.00 |
$ 0.01 |
(c) |
$ 0.01 |
|||
Diluted |
$ (0.05) |
$ 0.09 |
(a) |
$ 0.04 |
$ 0.00 |
$ 0.01 |
(c) |
$ 0.01 |
|||
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: |
|||||||||||
Basic |
66,813 |
- |
66,813 |
16,715 |
- |
16,715 |
|||||
Diluted |
66,813 |
11,016 |
(d) |
77,829 |
16,715 |
5,273 |
(d) |
21,988 |
(a) To eliminate share-based compensation expense of $8,342 offset by related tax effect of share-based compensation of $1,879 for the three months ended October 31, 2012 |
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(b) To eliminate share-based compensation expense of $1,449 offset by related tax effect of share-based compensation of $3 for the three months ended October 31, 2011 |
|||||||||||
(c) Includes the effect of participating securities under the two-class method for determining net income (loss) attributable to common stockholders |
|||||||||||
(d) Difference between weighted-average shares outstanding on a diluted basis under GAAP and non-GAAP due to application of the treasury stock method for dilutive shares |
Palo Alto Networks, Inc. |
||
Preliminary Condensed Consolidated Balance Sheets |
||
(In thousands) |
||
(Unaudited) |
||
October 31, |
July 31, |
|
2012 |
2012 |
|
Assets |
||
Current assets: |
||
Cash and cash equivalents |
$ 174,473 |
$ 322,642 |
Short-term investments |
147,084 |
- |
Accounts receivable, net of allowance for doubtful accounts |
56,369 |
45,642 |
Prepaid expenses and other current assets |
16,813 |
13,373 |
Total current assets |
394,739 |
381,657 |
Property and equipment, net |
22,965 |
20,979 |
Long-term investments |
20,567 |
- |
Other assets |
6,026 |
5,168 |
Total assets |
$ 444,297 |
$ 407,804 |
Liabilities and stockholders' equity |
||
Current liabilities: |
||
Accounts payable |
$ 10,290 |
$ 9,214 |
Accrued liabilities |
14,743 |
15,189 |
Accrued compensation |
16,171 |
11,307 |
Deferred revenue |
101,412 |
86,296 |
Total current liabilities |
142,616 |
122,006 |
Deferred revenue – non-current |
58,996 |
49,512 |
Other long-term liabilities |
6,896 |
7,215 |
Stockholders' equity: |
||
Preferred stock |
- |
- |
Common stock |
7 |
7 |
Additional paid-in capital |
319,352 |
309,092 |
Accumulated other comprehensive loss |
(27) |
- |
Accumulated deficit |
(83,543) |
(80,028) |
Total stockholders' equity |
235,789 |
229,071 |
Total liabilities and stockholders' equity |
$ 444,297 |
$ 407,804 |
Palo Alto Networks, Inc. |
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Preliminary Condensed Consolidated Statements of Cash Flows |
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(In thousands) |
||
(Unaudited) |
||
Three Months Ended |
||
2012 |
2011 |
|
Cash flows from operating activities |
||
Net income (loss) |
$ (3,515) |
$ 4,116 |
Adjustments to reconcile net income (loss) to |
||
Depreciation and amortization |
2,053 |
1,150 |
Amortization of investment premiums, net of accretion of purchase discounts |
316 |
- |
Share-based compensation for equity based awards |
8,284 |
1,449 |
Change in fair value of preferred stock warrants |
- |
404 |
Changes in operating assets and liabilities: |
||
Accounts receivable, net |
(10,727) |
(5,602) |
Prepaid expenses and other assets |
(3,830) |
(2,661) |
Accounts payable |
1,076 |
736 |
Accrued and other liabilities |
4,819 |
2,096 |
Deferred revenue |
24,600 |
18,904 |
Net cash provided by operating activities |
23,076 |
20,592 |
Cash flows from investing activities |
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Purchase of property, equipment, and other assets |
(4,015) |
(2,732) |
Purchase of investments |
(168,475) |
- |
Net cash used in investing activities |
(172,490) |
(2,732) |
Cash flows from financing activities |
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Changes in restricted cash |
- |
1,221 |
Proceeds from exercise of stock options |
1,534 |
287 |
Repurchase of restricted common stock from employees |
(24) |
(59) |
Payments of initial public offering costs |
(265) |
- |
Net cash provided by financing activities |
1,245 |
1,449 |
Net increase (decrease) in cash and cash equivalents |
(148,169) |
19,309 |
Cash and cash equivalents - beginning of period |
322,642 |
40,517 |
Cash and cash equivalents - end of period |
$ 174,473 |
$ 59,826 |
SOURCE
Media Contact, Mike Haro, Director of Corporate Communications, Palo Alto Networks, +1-408-438-8628, mharo@paloaltonetworks.com, or Investor Relations Contact, Chris Danne/Maria Riley, The Blueshirt Group, +1-415-217-7722, ir@paloaltonetworks.com