Fortinet Spikes Higher On Q1 Top And Bottom Line Beat

Shares of

spiked higher by more than 7 percent Wednesday morning after the company reported its

Fortinet said that it earned $0.12 per share in the first quarter on revenue of $284.6 million. Wall Street analysts were expecting the company to earn $0.09 per share on revenue of $273 million. Billings for the quarter rose 30 percent year-over-year to $330.5 million while revenue rose 34 percent. Product revenue for the quarter rose 28 percent from a year ago to $124.6 million and Service revenue rose 39 percent to $160.0 million. Total deferred revenue at the end of the quarter rose $45.9 million from the end of December to $837.2 million. Net loss for the quarter totaled $3.4 million, compared to a net income of $1.6 million a year ago. "During the first quarter, Fortinet executed very well and outperformed across all key metrics," said Ken Xie, founder, chairman and chief executive officer. "The increasing complexity of the IT security landscape is driving customer adoption of broad, integrated platforms, which has been our vision from the company's inception. Fortinet's Security Fabric is a strategic asset, since it allows customers to protect and gain intelligence on all points in the network -- from IoT to cloud -- through a unified operating system and management platform. This, along with recently announced products like our FortiGate-6000E Series of high-performance systems, strengthens our competitive position, expands our market opportunity, and helps to drive continued growth in 2016 and beyond."