Palo Alto Networks (PANW) saw its loss widen to $60.60 million, or $0.67 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $57.30 million, or $0.66 a share. On the other hand, adjusted net income for the quarter stood at $59.60 million, or $0.63 a share compared with $39.50 million or $0.43 a share, a year ago.
Revenue during the quarter grew 26.26 percent to $422.60 million from $334.70 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 73.21 percent. Operating margin for the quarter stood at negative 12.87 percent as compared to a negative 14.97 percent for the previous year period.
Operating loss for the quarter was $54.40 million, compared with an operating loss of $50.10 million in the previous year period.
"While fiscal second quarter revenue of $423 million was yet another record for the company, we were disappointed that we came in below top-line expectations due to some execution challenges, which we are moving quickly to address," said Mark McLaughlin, chief executive officer of Palo Alto Networks. "Our customers rely on us to solve their most difficult cybersecurity challenges, and we have yet again widened the technology gap between our Next-Generation Security Platform and the competition with the largest product and features launch in our history, including expansion of our virtual and cloud capabilities. We are also extending our capabilities in data analytics and machine learning with today’s announcement of our acquisition of LightCyber."
For the third-quarter, Palo Alto Networks forecasts revenue to be in the range of $406 million to $416 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.54 to $0.56.
Operating cash flow improves significantlyPalo Alto Networks has generated cash of $417.80 million from operating activities during the first half, up 38.80 percent or $116.80 million, when compared with the last year period. The company has spent $244.30 million cash to meet investing activities during the first six months as against cash outgo of $284.70 million in the last year period.
The company has spent $146.50 million cash to carry out financing activities during the first six months as against cash inflow of $21.10 million in the last year period.
Cash and cash equivalents stood at $761.40 million as on Jan. 31, 2017, up 84.27 percent or $348.20 million from $413.20 million on Jan. 31, 2016.
Working capital increases sharply
Palo Alto Networks has recorded an increase in the working capital over the last year. It stood at $886.80 million as at Jan. 31, 2017, up 634.71 percent or $766.10 million from $120.70 million on Jan. 31, 2016. Current ratio was at 1.89 as on Jan. 31, 2017, up from 1.10 on Jan. 31, 2016.
Days sales outstanding went up to 63 days for the quarter compared with 62 days for the same period last year.
At the same time, days payable outstanding went down to 18 days for the quarter from 24 for the same period last year.
Debt moves up marginallyPalo Alto Networks has witnessed an increase in total debt over the last one year. It stood at $512.30 million as on Jan. 31, 2017, up 2.97 percent or $14.80 million from $497.50 million on Jan. 31, 2016. Long-term debt stood at $512.30 million as on Jan. 31, 2017. Total debt was 16.14 percent of total assets as on Jan. 31, 2017, compared with 21.48 percent on Jan. 31, 2016. Debt to equity ratio was at 0.59 as on Jan. 31, 2017, down from 0.84 as on Jan. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
