NETWORK-security provider Fortinet reported on Wednesday a 22-percent growth in total revenue to $316.6 million for the third quarter of 2016 from $260.1 million in the same period last year.
“While our third-quarter results were impacted by a moderated spending environment, extended-sales cycles and sales-execution challenges, we continued to outgrow the market, as well as add 9,000 new customers,” said Ken Xie, founder, chairman and CEO of Fortinet. The company’s product revenue stood at $128 million from July to September this year, or 7 percent higher than the $119.7 million posted in the same quarter of 2015.
Service revenue rose by 34 percent to $188.7 million, from $140.3 million. Fortinet posted a 16-percent hike in total billings to $347.5 million, compared to $299.6 million a year ago.
As of end September, cash, cash equivalents and investments amounted to $1.27 billion versus $1.22 billion as of June 30. In the third quarter of 2016, cash flow from operations was $76.1 million against $65.1 million during the same period the previous year.
Free cash flow reached $70.2 million from $51.7 million during the two periods in review.
The multinational repurchased $25 million of its common stock under its share-repurchase program in three months ending September 30 this year.
Xie said Fortinet is still in a position to benefit from major industry trends, such as security vendor consolidation and next-generation cloud architectures.
“We have a strong technology advantage and visionary roadmap in place to help us continue to grow our market position, address our large opportunity, and make progress towards achieving our long term margin targets,” he said.
Fortinet offers intelligent and seamless protection, thus securing the biggest enterprise, service provider, and government organizations worldwide. It serves over 290,000 customers globally, including the Philippines.