Palo Alto Networks Reports Fiscal Second Quarter 2017 Financial Results
Total revenue for the fiscal second quarter 2017 grew 26 percent year over year to
Non-GAAP net income for the fiscal second quarter 2017 was
"While fiscal second quarter revenue of
"Our hybrid-SaaS model drove cash flow from operations to a record
Recent Highlights
- Announced the biggest product and features launch in the history of
Palo Alto Networks – More than 20,000 security professionals from more than 150 countries attended the online and in-person launch events to learn about the biggest highlights of the announcement, which included:- Six new hardware appliances designed to enable customers to deploy next-generation security from large data centers to small branches. The PA-5200 Series, PA-800 Series and PA-220 provide faster performance with deep visibility into and control over all traffic, including encrypted traffic, which is becoming an increasingly strategic necessity for effective security.
- Three new VM-Series models add to the existing four we currently offer. With throughput ranging from 200 Mbps to 16 Gbps, we offer the broadest line of virtualized firewall appliances on the market. Improved integrations with
Amazon ® Web Services (AWS®),Microsoft ® Azure® andVMware ® NSX® enable a wider range of deployment scenarios and deliver the scale, redundancy and automation that customers require to build cloud-centric architectures. - The industry's first multi-method, scalable and automated approach designed to prevent credential-based theft and abuse by attackers, including a new policy-based multi-factor authentication capability at the network layer.
- The introduction of both PAN-OS® and Panorama™ 8.0 with more than 70 new features.
- Announced the acquisition of LightCyber – This acquisition expands our Next-Generation Security Platform with the addition of the award-winning, highly automated behavioral analytics capabilities of LightCyber®, using sophisticated machine learning to quickly, efficiently and accurately identify attacks based on behavioral anomalies inside the network. We will continue to offer the LightCyber products and support existing customer implementations while we engineer the technology into our Next-Generation Security Platform, which we expect to complete by the end of the calendar year. At that time, we plan to offer it as a subscription that further enhances our platform's automated threat prevention capabilities and the ability for customer organizations to prevent cyber breaches throughout the entire attack lifecycle. To learn more about LightCyber and how it enhances the
Palo Alto Networks platform, visit www.paloaltonetworks.com. - Honored for cloud and advanced endpoint product innovation – CRN®, a brand of
The Channel Company , has namedPalo Alto Networks to its 100 Coolest Cloud Computing Vendors of 2017 list, recognizing the most innovative cloud technology suppliers. CRN also recognized our Traps™ advanced endpoint protection offering by naming it the overall winner in the 2016 Product of the Year Awards in the Endpoint Security category. - Achieved qualification in the
Amazon Web Services Competency Program for Security – Our VM-Series achieved thisAmazon qualification, reserved for very select partners, that demonstrates technical proficiency and proven customer success in the ability to enable organizations to deploy a comprehensive security architecture and a more seamless experience across their cloud and on-premise environments. - Recognized by
J.D. Power and TSIA for exceptional support services – This includes certifications under the esteemed J.D. Power Certified Assisted Technical Support Program and TSIA "Rated Outstanding Worldwide" certification* for the second consecutive year, and underscores the exceptional customer support we offer our customers around the globe.
* Palo Alto Networks has been recognized by J.D. Power for providing "An Outstanding Customer Service Experience" for its Assisted Technical Support.
Financial Outlook
For the fiscal third quarter 2017, we expect:
- Total revenue in the range of
$406 to $416 million , representing year-over-year growth between 17 percent and 20 percent. - Diluted non-GAAP net income per share in the range of
$0.54 to $0.56 , including a$0.04 investment in LightCyber, using 93 to 95 million shares.
Guidance for non-GAAP financial measures excludes share-based compensation related charges including share-based payroll tax expense, acquisition related costs, amortization expense of acquired intangible assets, litigation-related charges including legal settlements, non-cash interest expense related to our convertible senior notes, foreign currency gains (losses) and income and other tax effects associated with these items, and certain non-recurring expenses. We have not reconciled diluted non-GAAP net income per share guidance to GAAP net income (loss) per diluted share because we do not provide guidance on GAAP net income (loss) and would not be able to present the various reconciling cash and non-cash items between GAAP net income (loss) and non-GAAP net income (loss), including share-based compensation expense, without unreasonable effort. Share-based compensation expense is impacted by the company's future hiring and retention needs and, to a lesser extent, the future fair market value of the company's common stock, all of which is difficult to predict and subject to constant change. While the actual amounts of such reconciling items will have a significant impact on the company's GAAP net income (loss) per diluted share, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.
On
Conference Call Information
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future financial and operating performance, including our financial outlook for the fiscal third quarter 2017, our efforts to quickly address execution challenges, our intention to opportunistically repurchase shares of our common stock under our share repurchase program, and our plans, expectations and intentions with respect to the products and technologies that we acquired from LightCyber. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our limited operating history; the possibility that share repurchases may be suspended or discontinued; our ability to identify and effectively implement the necessary changes to address our execution challenges; fluctuations in the trading volume and market price of shares of our common stock; competing future investment opportunities and alternative uses of cash; risks associated with managing our rapid growth; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; our ability as an organization to acquire and integrate other companies, products, or technologies in a successful manner; rapidly evolving technological developments in the market for network security products and subscription and support offerings; length of sales cycles; and general market, political, economic and business conditions.
Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q filed with the
Non-GAAP Financial Measures and Other Key Metrics
The presentation of these non-GAAP financial measures and key metrics 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 historical non-GAAP financial measures and key metrics 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 these reconciliations.
Non-GAAP net income and net income per share, diluted.
Billings.
Free cash flow.
Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. In particular, the billings metric reported by the company includes amounts that have not yet been recognized as revenue and free cash flow does not represent the total increase or decrease in our cash balance for the period. In addition, many of the adjustments to the company's GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in the company's financial results for the foreseeable future, such as share-based compensation, which is an important part of
About
Palo Alto Networks, Inc. |
|||||||||||||||||
Preliminary Condensed Consolidated Statements of Operations |
|||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
Three Months Ended January 31, |
Six Months Ended January 31, |
||||||||||||||||
2017(2) |
2016 |
2017(2) |
2016 |
||||||||||||||
(As Adjusted)(1) |
(As Adjusted)(1) |
||||||||||||||||
Revenue: |
|||||||||||||||||
Product |
$ |
168.8 |
$ |
169.9 |
$ |
332.6 |
$ |
317.6 |
|||||||||
Subscription and support |
253.8 |
164.8 |
488.1 |
314.3 |
|||||||||||||
Total revenue |
422.6 |
334.7 |
820.7 |
631.9 |
|||||||||||||
Cost of revenue: |
|||||||||||||||||
Product |
45.8 |
44.9 |
88.0 |
83.7 |
|||||||||||||
Subscription and support |
67.4 |
49.3 |
126.4 |
89.7 |
|||||||||||||
Total cost of revenue |
113.2 |
94.2 |
214.4 |
173.4 |
|||||||||||||
Total gross profit |
309.4 |
240.5 |
606.3 |
458.5 |
|||||||||||||
Operating expenses: |
|||||||||||||||||
Research and development |
89.9 |
74.0 |
174.1 |
133.7 |
|||||||||||||
Sales and marketing |
226.7 |
182.4 |
446.8 |
341.9 |
|||||||||||||
General and administrative |
47.2 |
34.2 |
88.8 |
65.0 |
|||||||||||||
Total operating expenses |
363.8 |
290.6 |
709.7 |
540.6 |
|||||||||||||
Operating loss |
(54.4) |
(50.1) |
(103.4) |
(82.1) |
|||||||||||||
Interest expense |
(6.1) |
(5.8) |
(12.1) |
(11.6) |
|||||||||||||
Other income, net |
2.7 |
2.5 |
5.2 |
4.7 |
|||||||||||||
Loss before income taxes |
(57.8) |
(53.4) |
(110.3) |
(89.0) |
|||||||||||||
Provision for income taxes |
2.8 |
3.9 |
7.2 |
8.2 |
|||||||||||||
Net loss |
$ |
(60.6) |
$ |
(57.3) |
$ |
(117.5) |
$ |
(97.2) |
|||||||||
Net loss per share, basic and diluted |
$ |
(0.67) |
$ |
(0.66) |
$ |
(1.30) |
$ |
(1.13) |
|||||||||
Weighted-average shares used to compute net loss per share, basic and diluted |
90.7 |
86.6 |
90.2 |
85.8 |
|||||||||||||
(1) |
Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information. |
(2) |
The Company early adopted new share-based payment accounting guidance in its second quarter of fiscal 2017, which simplified, among other things, the accounting for income tax consequences and the method of accounting for forfeitures of share-based payment awards. As a result of the early adoption, the Company's share-based compensation and provision for income taxes decreased by $0.9 million and $4.0 million, respectively, for the three months ended October 31, 2016. These adjustments are reflected in the results for the six months ended January 31, 2017. |
Palo Alto Networks, Inc. |
|||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||
January 31, |
January 31, |
||||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||
(As Adjusted)(1) |
(As Adjusted)(1) |
||||||||||||||||
GAAP net loss |
$ |
(60.6) |
$ |
(57.3) |
$ |
(117.5) |
$ |
(97.2) |
|||||||||
Share-based compensation related charges |
131.8 |
106.9 |
247.4 |
182.1 |
|||||||||||||
Acquisition related costs |
0.7 |
— |
0.7 |
— |
|||||||||||||
Amortization expense of acquired intangible assets |
2.0 |
2.1 |
4.1 |
4.2 |
|||||||||||||
Litigation related charges |
3.0 |
3.0 |
6.1 |
6.1 |
|||||||||||||
Non-cash interest expense related to convertible notes |
6.1 |
5.7 |
12.1 |
11.5 |
|||||||||||||
Foreign currency (gain) loss associated with non-GAAP adjustments |
0.6 |
(0.7) |
0.4 |
(1.5) |
|||||||||||||
Income tax and other tax adjustments related to the above |
(24.0) |
(20.2) |
(42.5) |
(34.9) |
|||||||||||||
Non-GAAP net income |
$ |
59.6 |
$ |
39.5 |
$ |
110.8 |
$ |
70.3 |
|||||||||
GAAP net loss per share, diluted |
$ |
(0.67) |
$ |
(0.66) |
$ |
(1.30) |
$ |
(1.13) |
|||||||||
Share-based compensation related charges |
1.42 |
1.21 |
2.69 |
2.08 |
|||||||||||||
Acquisition related costs |
0.01 |
0.00 |
0.01 |
0.00 |
|||||||||||||
Amortization expense of acquired intangible assets |
0.02 |
0.02 |
0.05 |
0.05 |
|||||||||||||
Litigation related charges |
0.03 |
0.04 |
0.07 |
0.07 |
|||||||||||||
Non-cash interest expense related to convertible notes |
0.07 |
0.07 |
0.13 |
0.13 |
|||||||||||||
Foreign currency (gain) loss associated with non-GAAP adjustments |
0.01 |
(0.01) |
0.00 |
(0.02) |
|||||||||||||
Income tax and other tax adjustments related to the above |
(0.26) |
(0.24) |
(0.47) |
(0.41) |
|||||||||||||
Non-GAAP net income per share, diluted |
$ |
0.63 |
$ |
0.43 |
$ |
1.18 |
$ |
0.77 |
|||||||||
GAAP weighted-average shares used to compute net loss per share, diluted |
90.7 |
86.6 |
90.2 |
85.8 |
|||||||||||||
Weighted-average effect of potentially dilutive securities(2) |
3.2 |
5.1 |
3.6 |
5.4 |
|||||||||||||
Non-GAAP weighted-average shares used to compute net income per share, diluted |
93.9 |
91.7 |
93.8 |
91.2 |
|||||||||||||
Net cash provided by operating activities |
$ |
214.3 |
$ |
154.1 |
$ |
417.8 |
$ |
301.0 |
|||||||||
Less: purchases of property, equipment, and other assets |
44.7 |
17.4 |
65.6 |
36.9 |
|||||||||||||
Free cash flow (non-GAAP) |
$ |
169.6 |
$ |
136.7 |
$ |
352.2 |
$ |
264.1 |
|||||||||
Net cash used in investing activities |
$ |
(173.1) |
$ |
(21.2) |
$ |
(244.3) |
$ |
(284.7) |
|||||||||
Net cash provided by (used in) financing activities |
$ |
(119.2) |
$ |
4.5 |
$ |
(146.5) |
$ |
21.1 |
|||||||||
(1) |
Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information. |
(2) |
Non-GAAP net income per share, diluted, includes the potentially dilutive effect of employee equity incentive plan awards and convertible senior notes outstanding. In addition, non-GAAP net income per share, diluted, includes the anti-dilutive impact of the Company's note hedge agreements, which reduced the potentially dilutive effect of the convertible notes by 0.9 million shares and 1.2 million shares for the three and six months ended January 31, 2017, respectively, and 1.7 million shares and 1.8 million shares for the three and six months ended January 31, 2016, respectively. |
Palo Alto Networks, Inc. |
|||||||||||||||
Calculation of Billings |
|||||||||||||||
(In millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended January 31, |
Six Months Ended January 31, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Total revenue |
$ |
422.6 |
$ |
334.7 |
$ |
820.7 |
$ |
631.9 |
|||||||
Add: change in total deferred revenue |
139.0 |
124.3 |
257.8 |
215.1 |
|||||||||||
Billings |
$ |
561.6 |
$ |
459.0 |
$ |
1,078.5 |
$ |
847.0 |
Palo Alto Networks, Inc. |
|||||||||
Preliminary Condensed Consolidated Balance Sheets |
|||||||||
(In millions) |
|||||||||
(Unaudited) |
|||||||||
January 31, 2017 |
July 31, 2016 |
||||||||
(As Adjusted)(1) |
|||||||||
Assets |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ |
761.4 |
$ |
734.4 |
|||||
Short-term investments |
593.0 |
551.2 |
|||||||
Accounts receivable, net |
386.1 |
348.7 |
|||||||
Prepaid expenses and other current assets |
139.9 |
139.7 |
|||||||
Total current assets |
1,880.4 |
1,774.0 |
|||||||
Property and equipment, net |
154.1 |
117.2 |
|||||||
Long-term investments |
790.5 |
652.8 |
|||||||
Goodwill |
163.5 |
163.5 |
|||||||
Intangible assets, net |
39.5 |
44.0 |
|||||||
Other assets |
146.6 |
106.7 |
|||||||
Total assets |
$ |
3,174.6 |
$ |
2,858.2 |
|||||
Liabilities and stockholders' equity |
|||||||||
Current liabilities: |
|||||||||
Accounts payable |
$ |
28.0 |
$ |
30.2 |
|||||
Accrued compensation |
78.8 |
73.5 |
|||||||
Accrued and other liabilities |
58.8 |
39.2 |
|||||||
Deferred revenue |
828.0 |
703.9 |
|||||||
Total current liabilities |
993.6 |
846.8 |
|||||||
Convertible senior notes, net |
512.3 |
500.2 |
|||||||
Long-term deferred revenue |
670.6 |
536.9 |
|||||||
Other long-term liabilities |
127.5 |
79.4 |
|||||||
Stockholders' equity: |
|||||||||
Preferred stock |
— |
— |
|||||||
Common stock and additional paid-in capital |
1,613.3 |
1,515.5 |
|||||||
Accumulated other comprehensive income (loss) |
(5.1) |
1.0 |
|||||||
Accumulated deficit |
(737.6) |
(621.6) |
|||||||
Total stockholders' equity |
870.6 |
894.9 |
|||||||
Total liabilities and stockholders' equity |
$ |
3,174.6 |
$ |
2,858.2 |
|||||
(1) |
Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information. |
Palo Alto Networks, Inc. |
|||||||||
Preliminary Condensed Consolidated Statements of Cash Flows |
|||||||||
(In millions) |
|||||||||
(Unaudited) |
|||||||||
Six Months Ended January 31, |
|||||||||
2017 |
2016 |
||||||||
(As Adjusted)(1) |
|||||||||
Cash flows from operating activities |
|||||||||
Net loss |
$ |
(117.5) |
$ |
(97.2) |
|||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||||
Share-based compensation for equity based awards |
240.6 |
174.8 |
|||||||
Depreciation and amortization |
28.0 |
19.5 |
|||||||
Amortization of investment premiums, net of accretion of purchase discounts |
1.4 |
1.6 |
|||||||
Amortization of debt discount and debt issuance costs |
12.1 |
11.5 |
|||||||
Changes in operating assets and liabilities: |
|||||||||
Accounts receivable, net |
(37.3) |
(42.0) |
|||||||
Prepaid expenses and other assets |
(41.6) |
(12.9) |
|||||||
Accounts payable |
0.2 |
13.6 |
|||||||
Accrued compensation |
5.3 |
(8.6) |
|||||||
Accrued and other liabilities |
68.8 |
25.6 |
|||||||
Deferred revenue |
257.8 |
215.1 |
|||||||
Net cash provided by operating activities(2) |
417.8 |
301.0 |
|||||||
Cash flows from investing activities |
|||||||||
Purchases of investments |
(562.7) |
(610.2) |
|||||||
Proceeds from sales of investments |
— |
134.4 |
|||||||
Proceeds from maturities of investments |
384.0 |
228.0 |
|||||||
Purchases of property, equipment, and other assets |
(65.6) |
(36.9) |
|||||||
Net cash used in investing activities |
(244.3) |
(284.7) |
|||||||
Cash flows from financing activities |
|||||||||
Repurchases of common stock |
(170.1) |
— |
|||||||
Proceeds from sales of shares through employee equity incentive plans |
23.6 |
21.1 |
|||||||
Net cash provided by (used in) financing activities(2) |
(146.5) |
21.1 |
|||||||
Net increase in cash and cash equivalents |
27.0 |
37.4 |
|||||||
Cash and cash equivalents - beginning of period |
734.4 |
375.8 |
|||||||
Cash and cash equivalents - end of period |
$ |
761.4 |
$ |
413.2 |
|||||
(1) |
Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information. |
(2) |
The Company early adopted new share-based payment accounting guidance in its second quarter of fiscal 2017, which simplified, among other things, the presentation of excess tax benefits in the statement of cash flows. The Company adopted this portion of the guidance on a retrospective basis, which increased net cash provided by operating activities by $0.5 million for the six months ended January 31, 2016, with a corresponding decrease to net cash provided by financing activities. |
Appendix A
Change in Accounting Policy
(Unaudited)
Effective
The following tables present the changes to financial statement line items as a result of the accounting change for the periods presented in the Company's preliminary condensed consolidated financial statements (in millions, except per share data):
January 31, 2017 |
July 31, 2016 |
||||||||||||||||||||||
Computed |
Impact of |
As Reported |
As |
Impact of |
As Adjusted |
||||||||||||||||||
Preliminary Condensed Consolidated Balance Sheets |
|||||||||||||||||||||||
Prepaid expenses and other current assets |
$ |
83.2 |
$ |
56.7 |
$ |
139.9 |
$ |
84.8 |
$ |
54.9 |
$ |
139.7 |
|||||||||||
Other assets |
94.8 |
51.8 |
146.6 |
64.6 |
50.1 |
114.7 |
|||||||||||||||||
Accumulated deficit |
$ |
(846.1) |
$ |
108.5 |
$ |
(737.6) |
$ |
(726.6) |
$ |
105.0 |
$ |
(621.6) |
|||||||||||
Three Months Ended January 31, 2017 |
Three Months Ended January 31, 2016 |
||||||||||||||||||||||
Computed |
Impact of |
As Reported |
As |
Impact of |
As Adjusted |
||||||||||||||||||
Preliminary Condensed Consolidated Statements of Operations |
|||||||||||||||||||||||
Sales and marketing |
$ |
232.7 |
$ |
(6.0) |
$ |
226.7 |
$ |
187.6 |
$ |
(5.2) |
$ |
182.4 |
|||||||||||
Operating loss |
(60.4) |
6.0 |
(54.4) |
(55.3) |
5.2 |
(50.1) |
|||||||||||||||||
Provision for income taxes |
2.8 |
— |
2.8 |
3.9 |
— |
3.9 |
|||||||||||||||||
Net loss |
$ |
(66.6) |
$ |
6.0 |
$ |
(60.6) |
$ |
(62.5) |
$ |
5.2 |
$ |
(57.3) |
|||||||||||
Net loss per share, basic and diluted |
$ |
(0.73) |
$ |
0.06 |
$ |
(0.67) |
$ |
(0.72) |
$ |
0.06 |
$ |
(0.66) |
|||||||||||
Weighted-average shares used to compute net loss per share, basic and diluted |
90.7 |
— |
90.7 |
86.6 |
— |
86.6 |
|||||||||||||||||
Six Months Ended January 31, 2017 |
Six Months Ended January 31, 2016 |
||||||||||||||||||||||
Computed |
Impact of |
As Reported |
As |
Impact of |
As Adjusted |
||||||||||||||||||
Preliminary Condensed Consolidated Statements of Operations |
|||||||||||||||||||||||
Sales and marketing |
$ |
450.2 |
$ |
(3.4) |
$ |
446.8 |
$ |
345.9 |
$ |
(4.0) |
$ |
341.9 |
|||||||||||
Operating loss |
(106.8) |
3.4 |
(103.4) |
(86.1) |
4.0 |
(82.1) |
|||||||||||||||||
Provision for income taxes |
7.3 |
(0.1) |
7.2 |
8.2 |
— |
8.2 |
|||||||||||||||||
Net loss |
$ |
(121.0) |
$ |
3.5 |
$ |
(117.5) |
$ |
(101.2) |
$ |
4.0 |
$ |
(97.2) |
|||||||||||
Net loss per share, basic and diluted |
$ |
(1.34) |
$ |
0.04 |
$ |
(1.30) |
$ |
(1.18) |
$ |
0.05 |
$ |
(1.13) |
|||||||||||
Weighted-average shares used to compute net loss per share, basic and diluted |
90.2 |
— |
90.2 |
85.8 |
— |
85.8 |
This change in accounting policy does not affect the Company's balance of cash and cash equivalents and, as a result, did not change net cash flows from operating, investing, or financing activities or materially impact any individual line items in the Company's preliminary condensed consolidated statement of cash flows for the six months ended January 31, 2016.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/palo-alto-networks-reports-fiscal-second-quarter-2017-financial-results-300415233.html
SOURCE
Media Contact: Jennifer Jasper Smith, Head of Corporate Communications, Palo Alto Networks, 408-638-3280, jjsmith@paloaltonetworks.com, Investor Relations Contact: Kelsey Turcotte, Vice President of Investor Relations, Palo Alto Networks, 408-753-3872, kturcotte@paloaltonetworks.com