Fortinet Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended Dec. 31, 2013; Announces Impairment of Intangible Assets
January 29, 2014 at 04:15 pm EST
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Fortinet Inc. reported unaudited consolidated financial results for the fourth quarter and full year ended Dec. 31, 2013. Total revenue was $177.4 million for the fourth quarter of 2013, an increase of 17% compared to $151.2 million in the same quarter of 2012. In he fourth quarter of 2013, cash flow from operations was $46.7 million compared to $50.29 million in the same quarter of 2012. GAAP operating income was $24.6 million for the fourth quarter of 2013, representing a GAAP operating margin of 14%. GAAP operating income was $35.0 million for the same quarter of 2012, representing a GAAP operating margin of 23%. GAAP net income was $12.0 million for the fourth quarter of 2013, based on a 53% tax rate for the quarter. This compares to GAAP net income of $21.5 million for the same quarter of 2012, based on a 41% tax rate for the quarter. GAAP diluted net income per share was $0.07 for the fourth quarter of 2013, based on 168.9 million weighted-average diluted shares outstanding, compared to $0.13 for the same quarter of 2012, based on 167.0 million weighted-average diluted shares outstanding. Non-GAAP operating income was $37.8 million for the fourth quarter of 2013, representing a non-GAAP operating margin of 21%. Non-GAAP operating income was $41.6 million for the same quarter of 2012, representing a non-GAAP operating margin of 27%. Non-GAAP net income was $25.9 million for the fourth quarter of 2013, based on a 33% effective tax rate for the quarter. Non-GAAP net income for the same quarter of 2012 was $28.2 million, based on a 34% effective tax rate. Non-GAAP diluted net income per share was $0.15 for the fourth quarter of 2013 based on 168.9 million weighted-average diluted shares outstanding, compared to $0.17 for the same quarter of 2012, based on 167.0 million weighted-average diluted shares outstanding. Income before income taxes was $25,542,000 against $36,270,000 for the same period of last year. Purchases of property and equipment were $7,148,000 against $1,800,000 for the same period of last year.
Total revenue was $615.3 million for fiscal 2013, an increase of 15% compared to $533.6 million for fiscal 2012. In fiscal 2013, cash flow from operations was $147.4 million compared to $183.9 million for fiscal 2012. GAAP operating income was $72.1 million for fiscal 2013, representing a GAAP operating margin of 12%. GAAP operating income was $100.5 million for fiscal 2012, representing a GAAP operating margin of 19%. GAAP net income was $44.3 million for fiscal 2013, based on a 42% tax rate for the year. This compares to GAAP net income of $66.8 million for fiscal 2012, based on a 36% tax rate for the year. GAAP diluted net income per share was $0.26 for fiscal 2013, based on 168.2 million weighted-average diluted shares outstanding, compared to $0.40 for fiscal 2012, based on 166.3 million weighted-average diluted shares outstanding. Non-GAAP operating income was $116.7 million for fiscal 2013, representing a non-GAAP operating margin of 19%. Non-GAAP operating income was $130.1 million for fiscal 2012, representing a non-GAAP operating margin of 24%. Non-GAAP net income was $80.7 million for fiscal 2013, based on a 33% effective tax rate for the year. Non-GAAP net income for fiscal 2012 was $88.8 million, based on a 34% effective tax rate. Non-GAAP diluted net income per share was $0.48 for fiscal 2013 based on 168.2 million weighted-average diluted shares outstanding, compared to $0.53 for fiscal 2012, based on 166.3 weighted-average diluted shares outstanding. Income before income taxes was $75,941,000 against $104,996,000 for the same period of last year. Purchases of property and equipment were $13,877,000 against $22,083,000 for the same period of last year.
For the quarter, the company announced impairment charges related to certain intangible assets of $469,000.
Fortinet, Inc. specializes in the creation, development and marketing of integrated cybersecurity software and equipment for the protection of networks and information systems infrastructures as well as for the protection of company and government data.
Net sales break down by revenue source into sales of services (59.7%) and products (40.3%).
Net sales are distributed geographically as follows: the United States (30%), Americas (10.4%), Europe/Middle East/Africa (38.3%) and Asia/Pacific (21.3%).
Fortinet Inc. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year Ended Dec. 31, 2013; Announces Impairment of Intangible Assets