Fortinet Q1 Profit Drops, Revenue Tops View, Stock Up

(RTTNews) - Fortinet (FTNT), a provider of network security appliances, Wednesday said profit for the first quarter declined from the prior year as higher expenses more than offset a rise in revenues. The stock added over 5 percent in the extended trade.

Net income decreased to $8.39 million or $0.05 per share from $12.25 million or $0.07 per share in the previous year. Non-GAAP net income per share was $0.11 for the quarter.

On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $0.09 for the quarter. Analysts' estimates typically exclude special items.

Total revenue increased to $168.95 million from $135.82 million. Analysts expected revenue of $157.96 million for the quarter.

Product revenue increased 32 percent while Services and other revenue advanced 18 percent. Billings climbed 26 percent to $187.6 million.

Deferred revenue was $451.3 million as of March 31, 2014, up 20 percent from last year.

Total operating expenses climbed to $105.39 million from $81.30 million in the prior year, mainly due to higher sales and marketing expenses.

FTNT closed marginally higher on Wednesday at $22.04 and rose 5.3 percent in extended trading.