Palo Alto Networks (PANW) saw its loss widen to $61.80 million, or $0.69 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $39.90 million, or $0.47 a share. On the other hand, adjusted net income for the quarter stood at $51.20 million, or $0.55 a share compared with $30.80 million or $0.34 a share, a year ago. Revenue during the quarter surged 33.95 percent to $398.10 million from $297.20 million in the previous year period. Gross margin for the quarter expanded 120 basis points over the previous year period to 74.55 percent. Operating margin for the quarter stood at negative 12.53 percent as compared to a negative 10.77 percent for the previous year period.
Operating loss for the quarter was $49.90 million, compared with an operating loss of $32 million in the previous year period.
“Our first quarter 2017 results underscore that our Next-Generation Security Platform uniquely solves customers’ most complex security challenges,” said Mark McLaughlin, chief executive officer of Palo Alto Networks. “Our platform's ability to provide high degrees of prevention, automation, leverage and consistent security, regardless of wherever data may be, is becoming increasingly important in the face of today’s important macro technology changes. As a result, customers and prospects globally are adopting our platform at high rates.”
For the second-quarter, Palo Alto Networks forecasts revenue to be in the range of $426 million to $432 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.61 to $0.63 for the second-quarter.
Operating cash flow improves significantly
Palo Alto Networks has generated cash of $203.30 million from operating activities during the quarter, up 38.58 percent or $56.60 million, when compared with the last year period. The company has spent $71.20 million cash to meet investing activities during the quarter as against cash outgo of $263.50 million in the last year period.
The company has spent $27.10 million cash to carry out financing activities during the quarter as against cash inflow of $16.80 million in the last year period.
Cash and cash equivalents stood at $839.40 million as on Oct. 31, 2016, up 204.35 percent or $563.60 million from $275.80 million on Oct. 31, 2015.
Working capital turns positive
Working capital of Palo Alto Networks has turned positive to $465 million on Oct. 31, 2016 from negative $38.30 million on Oct. 31, 2015. Current ratio was at 1.33 as on Oct. 31, 2016, up from 0.96 on Oct. 31, 2015.
Days sales outstanding went up to 65 days for the quarter compared with 63 days for the same period last year.
At the same time, days payable outstanding went up to 19 days for the quarter from 18 for the same period last year.
Debt moves up marginally
Palo Alto Networks has witnessed an increase in total debt over the last one year. It stood at $506.20 million as on Oct. 31, 2016, up 2.82 percent or $13.90 million from $492.30 million on Oct. 31, 2015. Palo Alto Networks has witnessed an increase in short-term debt over the last one year. It stood at $506.20 million as on Oct. 31, 2016, up 2.82 percent or $13.90 million from $492.30 million on Oct. 31, 2015. Total debt was 16.84 percent of total assets as on Oct. 31, 2016, compared with 23.51 percent on Oct. 31, 2015. Debt to equity ratio was at 0.59 as on Oct. 31, 2016, down from 0.91 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
