Revenue during the quarter grew 10.89 percent to $88.81 million from $80.09 million in the previous year period. Gross margin for the quarter contracted 84 basis points over the previous year period to 76.24 percent. Operating margin for the quarter period stood at positive 6.19 percent as compared to a negative 9.97 percent for the previous year period.

Operating income for the quarter was $5.50 million, compared with an operating loss of $7.98 million in the previous year period.

However, the adjusted operating income for the quarter stood at $16.63 million compared to $5.74 million in the prior year period. At the same time, adjusted operating margin improved 1156 basis points in the quarter to 18.73 percent from 7.17 percent in the last year period.

"Barracuda delivered a strong third quarter with core product billings outpacing our expectations, driven in part by increasing customer adoption of our cloud-based security and data protection solutions. We continue to execute on our strategy to capitalize on market trends as more customers utilize our solutions as they move applications and workloads to the cloud," said BJ Jenkins, president and chief executive officer. "The threat landscape is complex and constantly evolving. As threats become more sophisticated, security remains a top priority for customers. We continue to drive innovation and deliver easy-to-use products that address our customers’ most pressing security needs across multiple threat vectors, including email, networks, web applications and mobile devices."

The company has spent $40.96 million cash to meet investing activities during the nine month period as against cash outgo of $59.07 million in the last year period.

The company has spent $4.12 million cash to carry out financing activities during the nine month period as against cash outgo of $8.83 million in the last year period.

Cash and cash equivalents stood at $121.11 million as on Nov. 30, 2016, up 3.45 percent or $4.04 million from $117.07 million on Nov. 30, 2015.

Working capital remains negative
Working capital of Barracuda Networks, Inc. was negative $3.83 million on Nov. 30, 2016 compared with negative $27.73 million on Nov. 30, 2015. Current ratio was at 0.99 as on Nov. 30, 2016, up from 0.90 on Nov. 30, 2015.

Cash conversion cycle (CCC) has increased to 12 days for the quarter from 6 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 48 days for the same period last year.

Days inventory outstanding has decreased to 10 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 84 for the same period last year.