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Fortinet, Inc. (FTNT)

  • Thu, Nov. 5, 12:47 PM
    • Fortinet (FTNT -4.2%), Barracuda (CUDA -3.9%), Vasco (VDSI -1.9%), Proofpoint (PFPT -4.6%), and KEYW (KEYW -6.3%) have joined the ranks of enterprise security tech firms selling off in the wake of FireEye's Q3 revenue/billings miss, soft Q4 sales guidance, and full-year billings guidance cut.
    • Other decliners include Palo Alto Networks, CyberArk, and Rapid7. FireEye itself is down 23%.
    • Also: PC/mobile security software firm AVG is down 17.7% after missing Q3 estimates and providing light Q4 guidance. Symantec is up slightly following an FQ2 EPS beat.
    • The PureFunds ISE Cyber Security ETF (HACK -3.1%) has fallen below $27. CyberArk reports after the bell.
    • Update: FBR's Daniel Ives is defending the group. "Importantly, we note that nearly every major cybersecurity player (Check Point, Imperva, Proofpoint, Palo Alto, Fortinet) recently has delivered strong results across the board with a healthy outlook ... We continue to strongly believe that FireEye's issues are much more company-specific as DeWalt & Co. are dealing with a plethora of execution/product headaches in the field, which are major overhangs on the FireEye story heading into 2016. We continue to see white-hot cybersecurity spending, which we view as a 30%+ growth area in a 2%–3% overall IT landscape as the threat landscape escalates. We would be strong buyers of the cybersecurity basket, with PANW, PFPT, and CHKP front and center."
    | Thu, Nov. 5, 12:47 PM | 4 Comments
  • Fri, Oct. 23, 9:14 AM
    | Fri, Oct. 23, 9:14 AM | 6 Comments
  • Thu, Oct. 22, 5:56 PM
    • Though Fortinet (NASDAQ:FTNT) beat Q3 estimates, it has guided in its earnings slides (.pdf) for Q4 revenue of $293M-$298M (+32% Y/Y at the midpoint) and EPS of $0.18-$0.19 vs. a consensus of $295.4M and $0.21. Expectations were high following July's strong results/guidance.
    • Q3 billings totaled totaled $299.6M, +41% Y/Y, above revenue of $260.1M, and above guidance of $285M-$295M. Full-year billings guidance has been slightly upped to $1.215B-$1.22B (+36% at the midpoint) from $1.2B-$1.21B. At the midpoint, Q4 billings guidance of $364M-$369M implies a slowdown in growth to 30%.
    • Billings growth led Q3 free cash flow to total $51.7M (well above net income of $24.1M), and the deferred revenue balance to rise 41% Y/Y to $706.9M.
    • Fortinet has fallen to $37.95 after hours. Rival Palo Alto Networks (NYSE:PANW), which is also dealing with high expectations, is down 3.3%. FireEye (NASDAQ:FEYE) is down 2%, and CyberArk (NASDAQ:CYBR) down 1.8%.
    • Fortinet's Q3 results, PR
    | Thu, Oct. 22, 5:56 PM | 16 Comments
  • Thu, Oct. 22, 4:20 PM
    • Fortinet (NASDAQ:FTNT): Q3 EPS of $0.14 beats by $0.02.
    • Revenue of $260.07M (+34.5% Y/Y) beats by $1.27M.
    • Shares -19.24%.
    • Press Release
    | Thu, Oct. 22, 4:20 PM | 6 Comments
  • Wed, Oct. 21, 5:35 PM
  • Wed, Oct. 21, 12:34 PM
    • Several security tech plays, including ones that were tech sector darlings earlier this year as a torrent of hacking incidents led corporate cybersecurity spend to jump, are selling off on a quiet day for equities.
    • Major decliners include Palo Alto Networks (PANW -4%), FireEye (FEYE -4.9%), Fortinet (FTNT -4.3%), CyberArk (CYBR -4.8%), Imperva (IMPV -5.3%), Proofpoint (PFPT -3.9%), Qualys (QLYS -2.8%), and Rapid7 (RPD -6.8%).
    • No major news has arrived to trigger a selloff. Meanwhile, hacking-related stories have continued producing ink in recent weeks. Notable ones: China is reportedly continuing hacking attacks on U.S. firms in spite of a pact that banned government spying on companies; authorities are probing a potential Russian hack of Dow Jones; and ISIS has reportedly tried (without much success) to hack the U.S. electrical grid.
    • The PureFunds ISE Cyber Security ETF (HACK -1.6%) is down 24% from a June peak of $33.91. YTD, it's only down modestly.
    • Proofpoint reports earnings after the close, and Fortinet tomorrow afternoon. Qualys reports on Nov. 2, FireEye on Nov. 4,, CyberArk on Nov. 5,, and Rapid7 on Nov. 12,
    • Update: One potential culprit: Server virtualization software leader VMware is cratering due to its soft Q4/2016 guidance (partly blamed on cloud adoption). A smattering of other high-beta enterprise tech names are also selling off.
    | Wed, Oct. 21, 12:34 PM | 23 Comments
  • Thu, Sep. 17, 6:47 PM
    • Unified threat management (UTM) appliance leader Fortinet (NASDAQ:FTNT) has launched an app that leverages machine data analytics software leader Splunk's (NASDAQ:SPLK) platform to analyze log data produced by Fortinet's FortiGate appliances, and by doing so improve threat-detection and response times. (PR)
    • Fortinet has also developed an add-on for the Splunk Enterprise platform that ingests and maps security and traffic data collected from Fortinet appliances into Splunk's software. Splunk: "By harnessing the threat data captured by the FortiGate devices, and translating that quickly into actionable intelligence and remediation steps, organizations can better leverage Splunk as the Nerve Center in their [security] command centers..."
    • Splunk mentioned on its Q2 call (transcript) it saw triple-digit Y/Y bookings growth the Splunk App for Enterprise Security, which runs on top of Splunk Enterprise. A deal was struck in July to buy Caspida, a security analytics software firm whose products rely on machine learning and behavioral analytics.
    | Thu, Sep. 17, 6:47 PM | Comment!
  • Thu, Aug. 6, 3:56 PM
    • Security tech names are among the big decliners (HACK -2.7%) on a day the Nasdaq is off 1.6%. Various other high-beta tech names are also hard-hit.
    • Major decliners include Palo Alto Networks (PANW -8.1%), Fortinet (FTNT -4.5%), AVG (AVG -8.1%), Proofpoint (PFPT -4.1%), and newly-public incident-detection/threat-response software firm Rapid7 (RPD -5.7%). Qualys is down 13.5% today after filing its Q2 10-Q.
    • Rapid7 is now down 25% from its July 17 opening trade of $26.75, albeit still up 25% from its $16 IPO price. AVG is adding to the 2.5% decline seen yesterday after the company posted a slight Q2 EPS beat, hiked full-year revenue guidance by $10M to $420M-$440M, and reiterated EPS guidance of $1.80-$1.90.
    • An afternoon report that the Pentagon has been the victim of a "sophisticated cyberattack" launched by Russia hasn't done much to lift the group. NBC News reports the attack "relied on some kind of automated system that rapidly gathered massive amounts of data and within a minute distributed all the information to thousands of accounts on the Internet." Officials believe it to be "the work of a state actor."
    | Thu, Aug. 6, 3:56 PM | 20 Comments
  • Thu, Jul. 23, 11:27 AM
    • As was the case 3 months ago, security tech plays are up strongly (HACK +3.6%) after Fortinet (FTNT +12%) beat estimates, reported strong billings, and delivered above-consensus top-line guidance. The Nasdaq is up 0.3%.
    • In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Barracuda Networks (CUDA +6.4%), KEYW Holding (KEYW +4.5%), Symantec (SYMC +1.9%), Imperva (IMPV +7.6%), Proofpoint (PFPT +3.6%), Vasco (VDSI +4.5%), AVG (AVG +3.1%), and Qualys (QLYS +5.7%). AVG is benefiting a bullish JPMorgan coverage launch; Proofpoint reports after the close.
    • JPMorgan's Sterling Auty has upgraded Fortinet to Overweight, and a slew of firms have hiked their targets. Auty argues Fortinet's numbers suggest its efforts to grow its high-end presence (aided by major sales investments in recent years), and forecasts free cash flow will rise 43% this year.
    • On Fortinet's earnings call (transcript), CFO Drew Del Matto mentioned $100K+ deals rose 53% Y/Y and $1M+ deal 133% (compares with 40% total billings growth). He also mentioned the company's high-end FortiGate UTM/next-gen firewall appliances made up 45% of billings (a new high), and that U.S. enterprise sales (benefiting from strong cybersecurity spend) rose 90%. Major deals were struck with "two of the most recognizable technology brands in the world," as well as two large i-banks.
    | Thu, Jul. 23, 11:27 AM | Comment!
  • Thu, Jul. 23, 9:15 AM
    | Thu, Jul. 23, 9:15 AM | 9 Comments
  • Wed, Jul. 22, 5:41 PM
    | Wed, Jul. 22, 5:41 PM | 2 Comments
  • Wed, Jul. 22, 5:17 PM
    • Fortinet (NASDAQ:FTNT) has followed up on its Q2 beat by guiding in its earnings slides (.pdf) for 2015 revenue of $1B-$1.01B and EPS of $0.51-$0.52. The latter (pressured by heavy spending) is only in-line with a $0.51 consensus, but the former is soundly above a $943M consensus.
    • Likewise, Q3 guidance is for revenue of $255M-$260M and EPS of $0.12 vs. a consensus of $235.3M and $0.14.
    • Q2 billings totaled $297.2M, +40% Y/Y, above guidance of $263M-$268M and well above revenue of $239.8M (+30%). Q3 billings guidance (possibly conservative, given Fortinet's history) is at $285M-$295M (+36%), and full-year guidance at $1.2B-$1.21B (+34%). Billings growth led the deferred revenue balance to rise 37% Y/Y to $657.6M.
    • Shares have jumped to $46.50 AH. Security tech peers are also up: FireEye (NASDAQ:FEYE) +2.5%, Palo Alto Networks (NYSE:PANW) +1.4%, CyberArk (NASDAQ:CYBR) +1.7%. Check Point provided strong numbers earlier today.
    • Fortinet's Q2 results, PR
    | Wed, Jul. 22, 5:17 PM | Comment!
  • Wed, Jul. 22, 4:20 PM
    • Fortinet (NASDAQ:FTNT): Q2 EPS of $0.11 beats by $0.02.
    • Revenue of $239.8M (+30.3% Y/Y) beats by $12.06M.
    • Press Release
    | Wed, Jul. 22, 4:20 PM | 1 Comment
  • Tue, Jul. 21, 5:35 PM
  • Wed, Jul. 15, 3:03 PM
    • Press Release: "Fortinet (FTNT -1.3%) -- the global leader in high-performance cybersecurity solutions, today announced the launch of the FortiGate 400D and the FortiGate 900D next-generation firewalls (NGFWs), with the enhanced performance required to function as an advanced internal segmentation firewall. These new appliances further bolster Fortinet's broad portfolio of integrated security solutions while delivering five times greater NGFW performance than competing products. With the introduction of these two solutions, Fortinet (NASDAQ:FTNT) has again made high-performance, cutting-edge cybersecurity more accessible for mid-market and enterprise organizations.
      Fortinet's new FortiGate 400D and 900D NGFWs were engineered to deliver high-performance security and specifically tailored to meet the grueling demands of mid-sized and enterprise organizations today and into the future. Leveraging Fortinet's legendary FortiASIC-accelerated performance, both Appliances utilize Fortinet's proprietary Network Processor 6 (NP6), providing the FortiGate 400D with throughput performance of 16 Gbps and propelling the FortiGate 900D to speeds of 52 Gbps."
    • Editor's note: To a large extent, Fortinet is looking to differentiate its NGFWs relative to those of Palo Alto Networks (NYSE:PANW) and other rivals via the high performance/throughput enabled by the company's proprietary ASICs. Palo Alto has emphasized the software features of its NFGWs (particularly with regards to app/user visibility) as much as their performance.
    | Wed, Jul. 15, 3:03 PM | 3 Comments
  • Thu, Jul. 9, 2:26 PM
    • Security tech plays are outperforming amid a 0.4% gain for the Nasdaq. The rally comes a day after the NYSE suffered a lengthy outage, United Airlines grounded flights, and the WSJ's site briefly went down.
    • All three incidents have been blamed on tech issues rather than attacks/breaches, but questions linger. FBI director James Comey: "We do not see any indication of a cyber breach or cyber attack ... But again, in my business, you don't love coincidences." Ex-White House cybersecurity advisor Richard Clarke: "Right now, anybody who says they know for sure what happened before the forensic work has been done is kidding themselves."
    • Also: In a bit of good PR/convenient timing for the group, representatives from the PureFunds Cyber Security ETF (HACK +1.6%) rang the NYSE's opening bell today. The NYSE says the event was booked months in advance.
    • Standouts include CyberArk (CYBR +4%), FireEye (FEYE +2.7%), KEYW Holding (KEYW +5%), Fortinet (FTNT +2.4%), Check Point (CHKP +2.6%), Imperva (IMPV +2.9%), Zix (ZIXI +2.8%), Proofpoint (PFPT +2.7%), and Vasco (VDSI +2.5%). Barracuda (CUDA +2%) reports after the bell.
    | Thu, Jul. 9, 2:26 PM | 8 Comments
Company Description
Fortinet Inc is provider of network security solutions that are designed to address the fundamental problems of an increasingly bandwidth-intensive network environment and a more sophisticated information technology threat landscape.
Sector: Technology
Country: United States