This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fortinet Beats Estimates, to Split Stock

Fortinet's guidance and CFO comments have been added to this story.

SUNNYVALE, Calif. (TheStreet) -- Fortinet's (FTNT) star is still firmly on the rise, if the security specialist's first-quarter results, released after market close Wednesday, are anything to go by.

The hardware maker reported revenue of $93.3 million, an increase of 34% compared to the same period last year, and a post comfortably above analysts' estimate of $86.9 million.

Excluding items, Fortinet earned 17 cents a share, up from 8 cents a share in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 14 cents a share.

"The first quarter marked a strong start to the year for Fortinet with solid execution and a healthy pipeline of business," said Fortinet CEO Ken Xie, in a statement. "Our recent investments in our global sales organization and sharpened focus on penetrating the large enterprise have resulted in significant momentum in our business across geographic regions."

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Boosted by demand for its products, the company increased its cash position during the first quarter. Fortinet exited the period with $432.7 million in cash and investments, compared to $387.5 million in the same quarter last year. Fortinet's cash flow from operations was $40.2 million, up from $21.8 million 12 months ago.

"I don't think that there were any negatives that we saw [during the quarter]," Fortinet CFO Ken Goldman told TheStreet. "We were able to overcome a couple of challenges in Japan and the turmoil in the middle east - we were able to compensate for that in other areas."

Fortinet's total billings in the Americas, for example, rose 64% year-over-year, according to the CFO.

For the second quarter ending in June, Fortinet expects revenue between $95 million and $96 million and earnings between 16 cents and 17 cents a share. Analysts currently anticipate sales of $92.1 million and earnings of 15 cents a share.

For the whole of fiscal 2011, the security outfit raised its guidance, predicting revenue between $390 milion and $400 million, compared to its previous range between $370 million and $385 million.

Excluding items, Fortinet is now looking for full-year earnings between 69 cents and 71 cents a share, up from its earlier forecast of 62 cents to 64 cents a share.

Analysts surveyed by Thomson Reuters had predicted revenue of $383.3 million and earnings of 64 cents a share.

Fortinet also announced a two-for-one stock split on Wednesday, with the additional shares scheduled for delivery on or around June 1. Once the stock split is completed, Fortinet will have roughly 153 million shares of common stock outstanding.

Investors responded positively to Fortinet's numbers and news of its stock split. Shares of the Cisco (CSCO) and Check Point (CHKP) rival climbed $3.03, or 7.26%, to $44.76 in extended trading on Wednesday.



The Silicon Valley firm has been attracting plenty of attention thanks to its FortiGate appliance, a sort of Swiss Army knife for network security: it combines firewall, anti-virus, VPN and intrusion prevention systems.

Fortinet, which recently hit a new 52-week high, is one of TheStreet's breakout stocks, and has even been touted as an attractive acquisition target for IBM (IBM) and HP (HPQ).

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs