Fortinet shares jump on strong results
(Reuters) - Shares of Fortinet Inc (FTNT.O) rose 13 percent after the network security software maker reported a 25 percent jump in quarterly revenue, helped by higher demand from U.S. enterprise customers.
The company, which competes with Check Point Software Technologies Ltd (CHKP.O) and the security divisions of Cisco Systems Inc (CSCO.O) and Juniper Networks Inc (JNPR.N), reported second-quarter revenue of $129 million on Wednesday.
"IT security spending is holding up much better than other areas of IT spend, partly due to the heightened awareness of security threats which have increased in frequency and sophistication over the past few years," William Blair analyst Jonathan Ho told Reuters.
Founded in 2000, Fortinet's firewall, antivirus, intrusion prevention, Web filtering and antispam products and services provide protection against application and network threats.
"Fortinet's billings for the quarter rose 32 percent to $146 million and was impressive even in Europe despite the macroeconomic slowdown, which bodes well for the coming quarters as well," said analyst Todd Weller at Stifel Nicolaus & Co.
Revenue recognized during the quarter plus any change in the company's deferred revenue is known as billings.
Shares of the Sunnyvale, California-based company were up $2.81 at $25.20 in morning trade on the New York Stock Exchange on Thursday.
(Reporting by Supantha Mukherjee and Shubham Singhal in Bangalore; Editing by Sreejiraj Eluvangal)
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