Reuters: Technology News: Fortinet beats estimates as software renewals rise

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Fortinet beats estimates as software renewals rise Oct 23rd 2013, 22:39 Share this Email Print Reprints Wed Oct 23, 2013 6:39pm EDT (Reuters) - Network security software maker Fortinet Inc reported quarterly results above analysts' estimates, helped by strong demand for support services and higher software renewals. Service revenue, which accounted for a majority of Fortinet's total revenue of $154.7 million, was up 20 percent in the third quarter. The company, a maker of firewalls, anti virus software and tools to speed up data across networks, said it expects fourth-quarter earnings of 13-14 cents per share on revenue of $162-$167 million. Analysts were expecting earnings of 15 cents per share on revenue of $167.3 million. "Their guidance is more a reflection of conservatism given the macro headwinds, which the investors have seem to taken in stride," William Blair and Co analyst Jonathan Ho said. Fortinet shares were up 8 percent in after-hours trading. The company's net income fell to $11 million, or 7 cents per share, in the third quarter, from $17.2 million, or 10 cents per share, a year earlier. Excluding items, the company earned 12 cents per share. Analysts had expected earnings of 11 cents per share, according to Thomson Reuters I/B/E/S. Revenue rose 14 percent to $154.7 million, ahead of analysts' expectations of $151.1 million. The company also reaffirmed its July guidance for billings revenue for the fourth quarter. Shares of the Sunnyvale, California-based company were trading at $22.5 in extended trading after closing at $20.56 on the Nasdaq on Wednesday. (Reporting By Aditya Kondalamahanty in Bangalore; Editing by Maju Samuel) Link this Share this Digg this Email Reprints

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