Fortinet Inc. (FTNT) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $25.17 million, or $ 0.14 a share in the quarter, against a net loss of $2.53 million, or $0.01 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $53.23 million, or $0.30 a share compared with $32.39 million or $0.18 a share, a year ago.
Revenue during the quarter grew 22.36 percent to $362.83 million from $296.53 million in the previous year period. Gross margin for the quarter expanded 259 basis points over the previous year period to 74.95 percent. Total expenses were 87.54 percent of quarterly revenues, down from 95.66 percent for the same period last year. This has led to an improvement of 812 basis points in operating margin to 12.46 percent.
Operating income for the quarter was $45.19 million, compared with $12.87 million in the previous year period.
However, the adjusted operating income for the quarter stood at $81.13 million compared to $47.58 million in the prior year period. At the same time, adjusted operating margin improved 631 basis points in the quarter to 22.36 percent from 16.05 percent in the last year period.
"We are pleased with our strong finish to 2016, demonstrating our strong technology advantage and revenue growth," said Ken Xie, founder, chairman and chief executive officer. "Our ability to provide a broad, powerful, and automated Security Fabric that protects all points in the network, from IoT to cloud, sets Fortinet apart. This technology advantage, combined with improvements in sales execution delivered strong results in the mid to large enterprise segments of the market and position us well for future growth."
Operating cash flow improves
Fortinet Inc. has generated cash of $345.71 million from operating activities during the year, up 22.35 percent or $63.16 million, when compared with the last year.
The company has spent $74.12 million cash to meet investing activities during the year as against cash outgo of $0.97 million in the last year.
The company has spent $105.86 million cash to carry out financing activities during the year as against cash outgo of $21.56 million in the last year period.
Cash and cash equivalents stood at $709 million as on Dec. 31, 2016, up 30.50 percent or $165.73 million from $543.28 million on Dec. 31, 2015.
Working capital increases
Fortinet Inc. has recorded an increase in the working capital over the last year. It stood at $709.28 million as at Dec. 31, 2016, up 19.84 percent or $117.40 million from $591.87 million on Dec. 31, 2015. Current ratio was at 1.86 as on Dec. 31, 2016, down from 1.87 on Dec. 31, 2015.
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