Fortinet posts lower 3Q profit on one-time charges

One-time charges cut into Fortinet's 3Q net income; adjusted results beat Wall Street views

Associated Press

NEWS: Fortinet Inc.'s net income fell 56 percent in the third quarter, as the network security provider booked several one-time charges. But its adjusted results trumped Wall Street estimates, advancing its shares almost 8 percent in after-market trading Wednesday.

DETAILS: Billings in the July-September quarter totaled $165.2 million, an increase of 14 percent from a year earlier. Fortinet also posted annual growth in product and services revenue. Those gains were offset by charges related to a tax adjustment, patent settlement income and stock-based pay.

NUMBERS: Net income slid to $11 million, or 7 cents per share, for the three months ended Sept. 30. That's down from $17.2 million, or 10 cents per share, a year earlier. Revenue increased 14 percent to $154.7 million from $136.3 million. Excluding the impact of one-time items, Fortinet's earnings amounted to 12 cents per share. Analysts polled by FactSet expected adjusted earnings of 11 cents per share on revenue of $151 million.

STOCK: Shares in the Sunnyvale, Calif., company ended regular trading down 13 cents at $20.56. The stock added $1.60 to $22.16 in after-hours trading. Shares are down about 2 percent this year as of Wednesday's close.

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