* Expects 4th-qtr adj profit/shr $0.10-$0.11 vs est $0.10
* Expects 4th-qtr revenue $158 mln-$162 mln vs est $158.4
* Shares rise 12 pct after the bell
(Adds details from conference call)
By Sampad Patnaik
May 28 Cyber security software maker Palo Alto
Networks Inc reported a better-than-expected 49 percent
jump in quarterly revenue as it added more customers, and said
it settled patent litigation with network gear maker Juniper
Palo Alto's shares rose about 12 percent after the bell.
The company, which sells firewalls that prevent data
breaches and block malware and viruses, forecast adjusted
earnings of 10-11 cents per share on revenue of $158
million-$162 million for the fourth quarter ending July.
Analysts on average were expecting 10 cents per share on
revenue of $158.4 million, according to Thomson Reuters I/B/E/S.
Palo Alto said it paid about $175 million to Juniper in cash
and stock to settle patent infringement lawsuits. It also said
it has struck a deal with Juniper not to sue each other for
"It was viewed that Juniper was not going to settle so the
fact that they even settled is like investors getting an ice
cream sundae when they were expecting dry broccoli," said Daniel
Ives, analyst at FBR Capital Markets and Co.
The settlement amount was much lower than the market
expected, he added.
Palo Alto's net loss, however, widened to $139.1 million, or
$1.86 per share, in the quarter ended April 30, from $7.3
million, or 10 cents per share, a year earlier.
Operating expenses rose threefold to $249.3 million and
included legal expenses of $113.7 million.
Revenue jumped to $150.7 million, ahead of analysts' average
estimate of $146.2 million.
The results were helped by a seven-figure deal to secure the
entire network of one of America's largest airports and a win at
a premier sports network production company to secure video
traffic, Chief Executive Mark McLaughlin said on a post-earnings
Excluding one-time items, the company earned 11 cents per
share, beating the average analyst estimate by 1 cent.
Palo Alto's shares closed at $69.51 on the New York Stock
Exchange on Wednesday.
(Reporting By Sampad Patnaik in Bangalore; Editing by Don