December 6, 2012 / 10:10 PM / 5 years ago

UPDATE 1-Palo Alto Networks Q1 revs up 50 pct, beats Street view

* Q1 revenue $85.9 mln versus Street view of $83.7 mln

* Q1 EPS of 4 cents versus estimates of 3 cents

* Shares down 2.5 pct in after-hours trading

Dec 6 (Reuters) - Security software maker Palo Alto Networks , which went public in July, reported a 50 percent rise in first-quarter revenue, beating Wall Street expectations, on the back of continued demand for security software.

Palo Alto Networks, which sells firewalls that prevent data breaches and block malware and viruses, said on Thursday that revenue was $85.9 million in the quarter, which ended Oct 31.

It said net income was $2.6 million, or 4 cents per share.

Analysts, on average, had expected the company to report earnings per share of 3 cents on revenue of $83.7 million.

Shares of Palo Alto Networks nevertheless fell 2.5 percent in after-hours trading to $50, following its $51.30 close in regular trading on Thursday.

Technology analyst Dan Ives of FBR Capital Markets said that the company showed strong growth amid a tough macro and competitive environment even if growth was slower than some may have hoped for.

“At the end of the day it was a good quarter relative to a tough macro environment,” Ives said, adding that “even though they beat expectations” growth was slower due to increased competition.

”Investors may be a little spoiled due to growth in the past, Ives added.

Revenue in the previous quarter jumped 88 percent and in the entire fiscal year 2012, Palo Alto’s revenue grew more than 115 percent to $225.1 million.

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