Palo Alto Networks results beats Street, 3rd quarter goal in line

Reuters News
Posted: Feb 28, 2013 4:59 PM

(Reuters) - Security software maker Palo Alto Networks reported second-quarter revenue and earnings per share that beat expectations amid strong demand for products that offer protection from cyberattacks.

Revenue in its second quarter, that ended January 31, rose 70 percent to $96.5 million compared with a year earlier, the company said on Thursday.

Non-GAAP earnings were $3.9 million, or 5 cents a share.

Analysts had expected revenue of $93.3 million and earnings per share of 4 cents, according to Thomson Reuters I/B/E/S.

In the current quarter it expects revenue in a range of $100 million to $104 million with earnings per share of around 5 cents, the company said.

Analysts said the company showed strong numbers and that the third quarter was in line with expectations.

"They were in line with the Street on guidance but some investors may have hoped for more," FBR Capital Markets analyst Daniel Ives.

"They continue to benefit from strong secular tailwinds," he said, adding that "spending is strong on the federal side due to the number of cyberattacks and I don't see that train slowing down."

Palo Alto Networks stock was down 4 percent at $58.70 in after hours trading. The shares closed up at $61.13 on Thursday.

(Reporting By Nicola Leske; editing by Carol Bishopric)