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SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) --

John Maddison, EVP of Products and CMO at Fortinet
“No other firewall is better suited to support hyperscale and 5G. Not only is FortiGate 4800F the industry’s fastest compact hyperscale firewall, with 2.4 Tbps of capacity, but it is also the only 4RU chassis on the market that includes 400GbE, 200GbE, and 50GbE ports, which allows hyperscale customers and mobile network operators to seamlessly scale their business without disrupting operations. The combination of performance and scalability packed into our latest firewall will help future-proof organizations’ investments in hyperscale data centers, especially with the rise of 5G and as the volume and velocity of data continues to accelerate at an unprecedented pace.”

News Summary
Fortinet®  (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, today announced the FortiGate 4800F series of hyperscale firewalls, which sets new standards for security, scale, performance, and innovation to meet the requirements of hyperscale customers and 5G mobile network operators (MNOs). Powered by 16 of Fortinet’s seventh generation network processors (NP7 ), FortiGate 4800F offers the highest performance figures of any compact firewall, with Security Compute Ratings that deliver up to 34x better performance than competitor solutions, including the ability to support an average of 19x more connections per second.

Large enterprises and MNOs are in the continual pursuit of doing more with less. When it comes to firewalls, higher performance in a smaller footprint means security becomes an enabler for 5G adoption, allowing mobile providers to deliver new use cases for enterprises and critical industries and infrastructure. It also ensures enterprise customers such as high-velocity e-retail, cutting-edge research facilities, financial institutions, and cloud providers have access to the performance, scalability, and security they need to meet escalating business needs. Reduced costs for space, cooling, and power are additional benefits to achieving higher performance in a smaller form factor.

With these outcomes in mind, Fortinet’s dedication to pushing the boundaries of what is possible in security performance has yielded the most powerful compact firewall yet: the FortiGate 4800F. With a 4RU chassis and 400GbE, 200GbE, and 50GbE interfaces, this latest model of Fortinet’s flagship line of firewalls enables MNOs to secure 5G networks with the following capabilities:

  • Accelerates 5G adoption with secure IP connectivity and support for 19x more connections per second: 5G enables massive machine-to-machine communications that require secure IP connectivity to untrusted environments such as the internet, edge sites, and the cloud. The FortiGate 4800F enables MNOs to secure massive scale and performance for IP connectivity to external networks and domains with massive carrier-grade NAT (CGNAT) performance and hardware logging. To build capacity that meets the needs of today and the future, FortiGate 4800F supports 25 million connections per second to give MNOs the capacity they need to handle surges in traffic and large sustained loads of subscriber connections. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience.
  • Secures 5G radio access network (RAN) traffic and core connectivity with 19x faster IPsec VPN performance: With the increased scale of 5G radio and the sharing of RAN between operators to reduce costs, the FortiGate 4800F provides a cost-effective security gateway (SecGW or SEG) to handle 5G’s RAN scalability and security requirements for both user and control planes.

FortiGate 4800F also delivers hyperscale security for hyperscale data centers with the following capabilities:

  • Enables 400G ultra-fast data center interconnect: With 400GbE ports in a compact 4RU form factor, FortiGate 4800F enables organizations to connect and replicate data securely with ultra-fast elephant flows, while ensuring privacy and confidentiality to certain that all data and services are delivered close to the customers and partners. Enterprises with ultra-performance needs can converge multiple firewalls into a single unified system, host on-premises applications, and deliver the required user experience. In April 2021, Fortinet became the first vendor to deliver 400GbE ports on a hyperscale firewall via FortiGate 7121F, followed by the FortiGate 3700F in May 2022. FortiGate 4800F continues Fortinet’s legacy as the only vendor delivering 400GbE interfaces on a hyperscale firewall to support the most intensive hyperscale use cases.
  • Removes blind spots with 6x faster SSL inspection: With as much as 95% of today’s traffic being encrypted, SSL-inspection has become critical to properly secure the network. While encrypted paths are meant to make traffic more secure, they also let bad actors hide malicious activity. To allow all encrypted traffic to be inspected while keeping up with the speed of today’s networks, FortiGate 4800F offers the industry’s highest SSL-inspection performance as well as support for the industry’s latest TLS 1.3 standard. This also ensures network blind spots are eliminated by enabling full visibility of clear-text and encrypted network flows.
  • Secures hybrid IT architectures with VXLAN segmentation: Digital acceleration is only possible with hybrid IT architectures that seamlessly connect and secure on-prem and cloud assets. The FortiGate 4800F enables massively scalable hardware-accelerated Virtual Extensible LAN (VXLAN) segmentation and allows super-fast communication between enormously scaled services, such as compute, storage, and applications that are co-hosted on physical and virtual platforms.

The entire FortiGate suite of next-generation and hyperscale firewalls supports organizations of all sizes with the following features:

  • High-performance security at scale: FortiGuard AI-Powered Security Services deliver innovative real-time protection for known, zero-day and unknown threats, including IPS, DNS, AV, and inline sandbox, for datacenter edge and core deployments leveraging segmentation and more granular device (OT/IoT) as well as web and application security capabilities for comprehensive perimeter protection.
  • Supports zero trust architectures with integrated universal ZTNA: FortiGate natively integrates universal zero trust network access (ZTNA) enforcement to support zero trust architectures. Setting up universal ZTNA with an on-prem or virtual FortiGate ensures that consistent policies and controls span across all operating environments, including across multiple clouds.

FortiGate 4800F vs. Competitors
Below is a comparison of the top firewalls on the market against the target performance numbers of the FortiGate 4800F series.  Security Compute Rating  is a benchmark (performance multiplier) that compares FortiGate performance versus the industry average of competing products across various categories that fall within the same price band.

Specification​ FortiGate 4801F1​ Security
Compute Rating​
Industry ​
Average​
Palo Alto Networks​
PA-54503​
Check Point​
Quantum 28000​
Cisco​
Firepower 4145​
Juniper​
SRX54004​
Firewall​ 2.4Tbps​ 15x​ 158Gbps​ 136.4Gbps​ 145Gbps​ 80Gbps​ 270Gbps​
IPsec VPN​ 800Gbps​ 19x​ 42Gbps​ 34.8Gbps​ 49Gbps​ 23Gbps​ 60Gbps​
Threat Protection5 ​ 70Gbps​ 1.5x​ 46Gbps​ 61.8Gbps​ 30Gbps​ N/A​ N/A​
SSL Inspection ​ 55Gbps​ 5.5x​ 10Gbps​ -​ -​ 10Gbps​ N/A​
Concurrent
Sessions​
280M/ 1760M2​ 34x​ 51M​ 40M​ 32M​ 40M​ 91M​
Connections
Per Second​
900K/ 25M2​ 19x​ 1.3M​ 1.45M​ 615k​ 1.5M​ 1.7M​

Additional Resources

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at  https://www.fortinet.com, the  Fortinet Blog, or  FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNDR, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.
Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at  www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Wed, 03 Aug 2022 01:03:00 -0500 en text/html https://apnews.com/press-release/globe-newswire/technology-mobile-networks-632a470d0662938dc20986a9ed3c4fe9
Killexams : Fortinet Reports Second Quarter 2022 Financial Results

Second Quarter 2022 Highlights

  • Product revenue of $400.7 million, up 34% year over year
  • Total revenue of $1.03 billion, up 29% year over year
  • Bookings of $1.38 billion, up 42% year over year1
  • Billings of $1.30 billion, up 36% year over year2
  • Deferred revenue of $3.93 billion, up 35% year over year
  • GAAP operating margin of 19.0%
  • Non-GAAP operating margin of 24.8%2
  • GAAP diluted net income per share attributable to Fortinet, Inc. of $0.213
  • Non-GAAP diluted net income per share attributable to Fortinet, Inc. of $0.242,3
  • Cash flow from operations of $323.4 million
  • Free cash flow of $283.5 million2
  • Cash paid for share repurchases of $800.0 million 

SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the second quarter ended June 30, 2022.

“We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than one million dollars. Large enterprise companies continue to favor Fortinet’s industry leading cost for performance advantage and integrated platform strategy,” said Ken Xie, Founder, Chairman, and Chief Executive Officer. “Fortinet’s market share gains are being driven by the convergence of networking and security and an accelerating focus on vendor consolidation with our Core Platform and Platform Extension solutions designed to secure our customers’ entire infrastructure from the data center to the cloud.”

Financial Highlights for the Second Quarter of 2022

  • Revenue: Total revenue was $1.03 billion for the second quarter of 2022, an increase of 28.6% compared to $801.1 million for the same quarter of 2021.
  • Product Revenue: Product revenue was $400.7 million for the second quarter of 2022, an increase of 34.3% compared to $298.3 million for the same quarter of 2021.
  • Service Revenue: Service revenue was $629.4 million for the second quarter of 2022, an increase of 25.2% compared to $502.8 million for the same quarter of 2021.
  • Bookings1: Total bookings were $1.38 billion for the second quarter of 2022, an increase of 42.1% compared to $967.9 million for the same quarter of 2021. Backlog was $349.9 million as of June 30, 2022, an increase of $188.0 million compared to $161.9 million as of December 31, 2021.
  • Billings2: Total billings were $1.30 billion for the second quarter of 2022, an increase of 35.7% compared to $960.9 million for the same quarter of 2021.
  • Deferred Revenue: Total deferred revenue was $3.93 billion as of June 30, 2022, an increase of 35.3% compared to $2.91 billion as of June 30, 2021.
  • GAAP Operating Income and Margin: GAAP operating income was $195.3 million for the second quarter of 2022, representing a GAAP operating margin of 19.0%. GAAP operating income was $147.5 million for the same quarter of 2021, representing a GAAP operating margin of 18.4%.
  • Non-GAAP Operating Income and Margin2: Non-GAAP operating income was $255.4 million for the second quarter of 2022, representing a non-GAAP operating margin of 24.8%. Non-GAAP operating income was $203.3 million for the same quarter of 2021, representing a non-GAAP operating margin of 25.4%.
  • GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.3: GAAP net income was $173.5 million for the second quarter of 2022, compared to GAAP net income of $137.5 million for the same quarter of 2021. GAAP diluted net income per share was $0.21 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.16 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.
  • Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.2,3: Non-GAAP net income was $194.1 million for the second quarter of 2022, compared to non-GAAP net income of $158.7 million for the same quarter of 2021. Non-GAAP diluted net income per share was $0.24 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to $0.19 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.
  • Cash Flow: Cash flow from operations was $323.4 million for the second quarter of 2022, compared to $418.2 million for the same quarter of 2021.
  • Free Cash Flow2: Free cash flow was $283.5 million for the second quarter of 2022, compared to $394.7 million for the same quarter of 2021.
  • Share Repurchase Program3: During the three and six months ended June 30, 2022, Fortinet repurchased 14.4 million and 25.8 million shares of its common stock at an average price of $55.45 and $57.82 per share and for an aggregate purchase price of $800.0 million and $1.49 billion, respectively. During the three and six months ended June 30, 2021, Fortinet repurchased 2.3 million shares of its common stock at an average price of $40.28 per share and for an aggregate purchase price of $91.6 million. In July 2022, Fortinet’s board of directors authorized a $1.0 billion increase in the authorized stock repurchase under our share repurchase program. As of August 1, 2022, approximately $1.03 billion remained available for future share repurchases.

Guidance

For the third quarter of 2022, Fortinet currently expects:

  • Revenue in the range of $1.105 billion to $1.135 billion
  • Billings in the range of $1.385 billion to $1.415 billion
  • Non-GAAP gross margin in the range of 75.0% to 76.0%
  • Non-GAAP operating margin in the range of 25.0% to 26.0%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.26 to $0.28, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

For the fiscal year 2022, Fortinet currently expects:

  • Revenue in the range of $4.350 billion to $4.400 billion
  • Service revenue in the range of $2.620 billion to $2.670 billion
  • Billings in the range of $5.560 billion to $5.640 billion
  • Non-GAAP gross margin in the range of 75.0% to 76.0%
  • Non-GAAP operating margin in the range of 25.0% to 26.0%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $1.01 to $1.06, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matters. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

1 Bookings represents the total value of all orders received during the period. Backlog represents orders received but not fulfilled and excludes Alaxala Networks Corporation. When an order is fulfilled, billings and revenue are recognized.
2 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
3 All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com  and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Third Quarter 2022 Conference Participation Schedule:

  • KeyBanc Technology Leadership Conference
    August 8, 2022
  • Stifel Tech Executive Summit Deer Valley
    August 29-31, 2022
  • Citibank Investor Conference
    September 7, 2022
  • Evercore Investor Conference
    September 8, 2022
  • Goldman Sachs Communicopia Conference
    September 12, 2022

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet ( www.fortinet.com )

Fortinet (NASDAQ: FTNT) makes possible a digital world that we can trust through its mission to protect people, devices and data everywhere. This is why many of the world’s largest enterprises, service providers and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Core Platform and Platform Extension products deliver broad, integrated and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. The Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda, provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog  or FortiGuard Labs.

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMoM, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPlanner, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future market share gains, guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2022, statements regarding the momentum in our business and future growth expectations, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic, the war in Ukraine, economic challenges, fears of a recession, and any actual recession, and the effects of increased inflation in certain geographies; significantly heightened supply chain challenges due to the current global environment; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic, the war in Ukraine and the effects of increased inflation in certain geographies; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov  or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

COVID-19 Impact

While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending September 30, 2022, our annual results for 2022, and beyond. To highlight the uncertainty remaining for the three-month period ending September 30, 2022, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. Additionally, significantly heightened supply chain challenges are impacting businesses around the globe. If we experience significant changes in our billings growth rates or if we are unable to supply product to meet demand, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share attributable to Fortinet, Inc. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies, a tax adjustment required for an effective tax rate on a non-GAAP basis and adjustments attributable to non-controlling interests, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions)

  June 30,
2022
  December 31,
2021
ASSETS      
CURRENT ASSETS:      
Cash and cash equivalents $ 710.0     $ 1,319.1  
Short-term investments   1,020.6       1,194.0  
Marketable equity securities   24.3       38.6  
Accounts receivable—net   919.5       807.7  
Inventory   195.2       175.8  
Prepaid expenses and other current assets   83.3       65.4  
Total current assets   2,952.9       3,600.6  
LONG-TERM INVESTMENTS   188.5       440.8  
PROPERTY AND EQUIPMENT—NET   814.6       687.6  
DEFERRED CONTRACT COSTS   456.9       423.3  
DEFERRED TAX ASSETS   480.2       342.3  
GOODWILL AND OTHER INTANGIBLE ASSETS—NET   166.7       188.7  
OTHER ASSETS   234.7       235.8  
TOTAL ASSETS $ 5,294.5     $ 5,919.1  
LIABILITIES AND EQUITY (DEFICIT)      
CURRENT LIABILITIES:      
Accounts payable $ 193.1     $ 148.4  
Accrued liabilities   241.2       197.3  
Accrued payroll and compensation   187.4       195.0  
Deferred revenue   2,013.2       1,777.4  
Total current liabilities   2,634.9       2,318.1  
DEFERRED REVENUE   1,918.8       1,675.5  
INCOME TAX LIABILITIES   67.1       79.5  
LONG-TERM DEBT   989.4       988.4  
OTHER LIABILITIES   63.9       59.2  
Total liabilities   5,674.1       5,120.7  
COMMITMENTS AND CONTINGENCIES      
EQUITY (DEFICIT):      
Common stock   0.8       0.8  
Additional paid-in capital   1,237.3       1,253.6  
Accumulated other comprehensive loss   (23.4 )     (4.8 )
Accumulated deficit   (1,607.6 )     (467.9 )
Total Fortinet, Inc. stockholders’ equity (deficit)   (392.9 )     781.7  
Non-controlling interests   13.3       16.7  
Total equity (deficit)   (379.6 )     798.4  
TOTAL LIABILITIES AND EQUITY (DEFICIT) $ 5,294.5     $ 5,919.1  
               

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)

  Three Months Ended   Six Months Ended
  June 30,
2022
  June 30,
2021
  June 30,
2022
  June 30,
2021
REVENUE:              
Product $ 400.7     $ 298.3     $ 771.7     $ 539.0  
Service   629.4       502.8       1,213.2       972.4  
Total revenue   1,030.1       801.1       1,984.9       1,511.4  
COST OF REVENUE:              
Product   155.2       115.6       316.2       206.9  
Service   95.6       71.3       188.4       136.6  
Total cost of revenue   250.8       186.9       504.6       343.5  
GROSS PROFIT:              
Product   245.5       182.7       455.5       332.1  
Service   533.8       431.5       1,024.8       835.8  
Total gross profit   779.3       614.2       1,480.3       1,167.9  
OPERATING EXPENSES:              
Research and development   124.3       106.6       249.2       203.8  
Sales and marketing   415.5       326.9       803.1       630.9  
General and administrative   45.4       34.4       84.0       66.4  
Gain on intellectual property matter   (1.2 )     (1.2 )     (2.3 )     (2.3 )
Total operating expenses   584.0       466.7       1,134.0       898.8  
OPERATING INCOME   195.3       147.5       346.3       269.1  
INTEREST INCOME   2.4       1.2       3.7       2.3  
INTEREST EXPENSE   (4.5 )     (4.5 )     (9.0 )     (5.8 )
OTHER INCOME (EXPENSE)—NET   (9.3 )     0.8       (18.4 )     (1.2 )
INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT   183.9       145.0       322.6       264.4  
PROVISION FOR (BENEFIT FROM) INCOME TAXES   2.4       7.5       (5.7 )     19.7  
LOSS FROM EQUITY METHOD INVESTMENT   (8.1 )           (16.6 )      
NET INCOME INCLUDING NON-CONTROLLING INTERESTS   173.4       137.5       311.7       244.7  
Less: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX   (0.1 )           (0.2 )      
NET INCOME ATTRIBUTABLE TO FORTINET, INC. $ 173.5     $ 137.5     $ 311.9     $ 244.7  
Net income per share attributable to Fortinet, Inc.(a):              
Basic $ 0.22     $ 0.17     $ 0.39     $ 0.30  
Diluted $ 0.21     $ 0.16     $ 0.38     $ 0.29  
Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.(a):              
Basic   795.4       816.7       799.4       815.9  
Diluted   810.1       835.4       815.4       833.7  
                               

(a) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)

  Six Months Ended
  June 30,
2022
  June 30,
2021
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income including non-controlling interests $ 311.7     $ 244.7  
Adjustments to reconcile net income to net cash provided by operating activities:      
Stock-based compensation   107.9       102.1  
Amortization of deferred contract costs   107.1       81.8  
Depreciation and amortization   50.6       36.2  
Amortization of investment premiums   2.8       2.9  
Loss from equity method investment   16.6        
Other   22.8       0.3  
Changes in operating assets and liabilities, net of impact of business combinations:      
Accounts receivable—net   (119.3 )     135.6  
Inventory   (31.2 )     (20.1 )
Prepaid expenses and other current assets   (18.2 )     (16.4 )
Deferred contract costs   (140.6 )     (124.8 )
Deferred tax assets   (136.3 )     (25.8 )
Other assets   (16.7 )     (11.8 )
Accounts payable   52.7       (9.5 )
Accrued liabilities   30.1       21.3  
Accrued payroll and compensation   (6.8 )     18.7  
Other liabilities   5.7       (1.2 )
Deferred revenue   480.6       300.1  
     Net cash provided by operating activities   719.5       734.1  
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of investments   (389.1 )     (1,262.5 )
Sales of investments   3.0       71.4  
Maturities of investments   797.3       600.3  
Purchases of property and equipment   (162.5 )     (75.6 )
Purchases of investment in privately held company         (75.0 )
Payments made in connection with business combinations, net of cash acquired         (10.3 )
     Net cash provided by (used in) investing activities   248.7       (751.7 )
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from long-term borrowings, net of discount and underwriting fees         989.4  
Payments for debt issuance costs         (2.4 )
Repurchase and retirement of common stock   (1,491.2 )     (91.6 )
Proceeds from issuance of common stock   15.9       15.8  
Taxes paid related to net share settlement of equity awards   (99.9 )     (76.0 )
Other   (1.1 )     (0.1 )
     Net cash provided by (used in) financing activities   (1,576.3 )     835.1  
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (1.0 )      
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (609.1 )     817.5  
CASH AND CASH EQUIVALENTS—Beginning of period   1,319.1       1,061.8  
CASH AND CASH EQUIVALENTS—End of period $ 710.0     $ 1,879.3  
               

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)

Reconciliation of net cash provided by operating activities to free cash flow

  Three Months Ended
  June 30,
2022
  June 30,
2021
Net cash provided by operating activities $ 323.4     $ 418.2  
Less: Purchases of property and equipment   (39.9 )     (23.5 )
Free cash flow $ 283.5     $ 394.7  
Net cash provided by (used in) investing activities $ 294.1     $ (278.2 )
Net cash used in financing activities $ (830.3 )   $ (120.9 )
               

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income attributable to Fortinet, Inc. and diluted net income per share attributable to Fortinet, Inc.

  Three Months Ended June 30, 2022   Three Months Ended June 30, 2021
  GAAP Results   Adjustments   Non-GAAP Results   GAAP Results   Adjustments   Non-GAAP Results
Operating income $ 195.3     $ 60.1   (a) $ 255.4     $ 147.5     $ 55.8   (b) $ 203.3  
Operating margin   19.0 %         24.8 %     18.4 %         25.4 %
Adjustments:                      
Stock-based compensation       55.3               53.5      
Amortization of acquired intangible assets       6.0               3.5      
Gain on intellectual property matter       (1.2 )             (1.2 )    
Tax adjustment       (39.1 ) (c)           (34.6 ) (c)  
Adjustments attributable non-controlling interests       (0.4 ) (d)                
Net income attributable to Fortinet, Inc. $ 173.5     $ 20.6     $ 194.1     $ 137.5     $ 21.2     $ 158.7  
Diluted net income per share attributable to Fortinet, Inc.(e) $ 0.21         $ 0.24     $ 0.16         $ 0.19  
Shares used in diluted net income per share attributable to Fortinet, Inc. calculations(e)   810.1           810.1       835.4           835.4  
                                       

(a) To exclude $55.3 million of stock-based compensation and $6.0 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2022.
(b) To exclude $53.5 million of stock-based compensation and $3.5 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2021.
(c) Non-GAAP financial information is adjusted to an effective tax rate of 17% and 21% in the three months ended June 30, 2022 and 2021, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(d) Adjustments related to the non-GAAP results attributable to non-controlling interests, which were adjusted to an effective tax rate of 31% for the subsidiary of Alaxala Networks Corporation in the three months ended June 30, 2022.
(e) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Reconciliation of total revenue to total billings

  Three Months Ended
  June 30,
2022
  June 30,
2021
Total revenue $ 1,030.1   $ 801.1
Add: Change in deferred revenue   274.1     159.8
Total billings $ 1,304.2   $ 960.9
           
Investor Contact:   Media Contact:
     
Peter Salkowski   Sandra Wheatley
Fortinet, Inc.   Fortinet, Inc.
408-331-4595   408-391-9408
psalkowski@fortinet.com   swheatley@fortinet.com
Wed, 03 Aug 2022 08:07:00 -0500 en text/html https://apnews.com/press-release/GlobeNewswire/russia-ukraine-covid-technology-health-33c9a3c8faaabe190bcf4d606075fed1
Killexams : Fortinet Empowers Teams to Proactively Manage Cloud Risk with New Cloud-native Protection Offering, Available Now on AWS

SUNNYVALE, Calif., July 26, 2022 (GLOBE NEWSWIRE) -- AWS re:Inforce

News Summary
Fortinet® FTNT, a global leader in broad, integrated, and automated cybersecurity solutions, today announced FortiCNP, a new built-in-the-cloud offering that correlates security findings from across an organization's cloud footprint to facilitate friction-free cloud security operations. FortiCNP's patented Resource Risk Insights (RRI)TM technology produces context-rich, actionable insights that help teams prioritize the remediation and mitigation of risks with the highest potential impact on cloud workload security without slowing down the business.

Also announced today, Fortinet is an Amazon Web Services (AWS) Launch Partner for Amazon GuardDuty Malware Protection, which provides agentless malware detection capabilities across AWS data stores, disk volumes, and workload images. FortiCNP supports Amazon GuardDuty Malware Protection, delivering near-real-time threat protection with zero-permission capabilities to actively scan running workloads with no impact or delays to operations.

The rapid pace of cloud adoption as part of a hybrid IT architecture allows organizations to achieve faster time to market and increased responsiveness to customer needs. However, the cloud can increase overall security risk, which is often addressed by adding new security solutions to an organization's existing infrastructure. Each of these solutions comes with a litany of alerts that often require manual analysis and can quickly compound across an organization's cloud deployment.

"Without the proper tools, security professionals must manually sift through hundreds, if not thousands, of security alerts on a daily basis," said Doug Cahill, Vice President, Analyst Services and Senior Analyst at Enterprise Strategy Group (ESG). "Inundated with alerts, teams can face decreased productivity, inefficient workflows, and security risks accumulating faster than they can be addressed. FortiCNP helps cut through the noise, pointing teams to the security alerts that matter most."

Customers are already experiencing the benefits of FortiCNP's approach to cloud-native risk management:

"FortiCNP gives us comprehensive cloud visibility with an intuitive dashboard that allows us to easily track risk management over time," said Caio Hyppolito, Chief Technology Officer (CTO) at BK Bank. "Most importantly, it enables our team to focus on securing high-priority resources instead of spending time working through long lists of security findings. Integrations with the products we already have allow us to get even more value out of our deployment and allow broader visibility and easier, more proactive cloud security management."

Partners are also leveraging FortiCNP to enhance their offerings:

"As an AWS Level 1 MSSP Competency Partner, Observian is dedicated to ensuring our service offerings support customers in building scalable, secure cloud deployments. Observian is thrilled to deliver a new service featuring Fortinet's new Cloud-Native Protection solution, FortiCNP, with Observian's trusted and proven managed detection and response services," said Scott Plamondon, Co-Founder and VP of Architecture at Observian. "FortiCNP allows customers to easily integrate, more quickly operationalize, and immediately benefit from AWS's native-cloud security services with more targeted and actionable alerts tuned to their needs and less noise. Our customers that rely on Observian's Security Operations team will benefit from our ability to even better triage and report on those alerts 24/7."

A defining feature of FortiCNP is integration with AWS security products and services, and the Fortinet Security Fabric, which helps organizations more effectively secure their cloud environments and maximize their cloud security investments.

"At AWS, we provide our customers with smarter tools to easily take action and mitigate risk faster," said Jon Ramsey, Vice President (VP) AWS Security. "Security Partners like Fortinet with their FortiCNP offering built on AWS and integrated with our security services like Amazon GuardDuty give customers a choice to simplify and accelerate their cloud journey with cloud-native security services."

FortiCNP delivers the following features that allow security teams to effectively manage risk in the cloud:

  • FortiCNP Resource Risk Insights (RRI)TM leverages a patented risk score algorithm to contextualize security findings from Fortinet Cloud Security solutions and AWS products and services to provide teams with prioritized, context-rich, and actionable insights about resources that present the highest risk and need immediate attention.
  • By analyzing, correlating, and contextualizing security findings from AWS cloud security services with FortiCNP, customers maximize the value and benefit from easy deployment capabilities offered by Amazon GuardDuty Malware Protection, Amazon Inspector, AWS Security Hub, AWS CloudTrail, and AWS Organizations.
  • Integrations with Amazon GuardDuty Malware Protection leverage a zero-permission, agentless approach for detecting malware throughout the data supply chain by scanning cloud data stores, disk volumes, and workload images.
  • Integrations with digital workflow solutions turn FortiCNP RRIs into intuitively actionable workflow tasks as part of the cloud infrastructure lifecycle.
  • For customers utilizing Fortinet Cloud Security solutions such as FortiGate-VM and FortiWeb, RRIs will be able to trigger stop-gap remediations to block high-impact threats.
  • FortiCNP continuously scans and monitors changes to cloud data with industry-leading threat intelligence and content scanning powered by FortiGuard Labs.

FortiCNP will be continually expanded to ingest more types of cloud security findings to provide broader context across more cloud workloads. Enabling consistent workflows that scale security across the public cloud helps teams Improve security coverage, productivity, and risk mitigation—at the speed of the cloud. Cloud-native integrations facilitate reduced friction from deployment through operations. With consistent workflows utilizing cloud-native services across multiple clouds, security teams will no longer be required to master the intricacies of each cloud platform's security service operational model. This will help security teams increase productivity by effectively working through cloud security backlog, mitigating risk, and quantifiably improving cloud security over time.

"FortiCNP is the latest example of Fortinet's commitment to delivering Fabric solutions that extend enterprise security with cloud-native integrations," said John Maddison, EVP of Products and CMO at Fortinet. "We're pleased to continue to deliver solutions that allow security professionals to transition from time-consuming triage and manual analysis processes to proactively securing their cloud workloads and easily understand their cloud security risk."

Today's announcement builds on Fortinet and AWS' relationship to support customers in accelerating their journey to AWS. Fortinet has also been named an AWS Security Competency Partner, with FortiCNP serving as the latest example of Fortinet's commitment to delivering purpose-built cloud security solutions that integrate with AWS products and solutions. Fortinet delivers one of the broadest sets of use cases with comprehensive security for AWS workloads including firewall, security gateway, intrusion prevention, and web application security. With flexible procurement options in AWS Marketplace, including contract and consumption offerings, and a range of available form factors, including Software-as-a-Service (SaaS), virtual machine (VM), container, and application programming interface (API) based protection, customers can address a broad variety of AWS security and procurement requirements to protect their AWS workloads.

Get a free trial of FortiCNP at AWS Marketplace: https://www.forticnp-aws.com

Additional Resources

About Fortinet
Fortinet FTNT makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world's largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet's Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCNP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements. 


© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Tue, 26 Jul 2022 03:00:00 -0500 text/html https://www.benzinga.com/pressreleases/22/07/g28206906/fortinet-empowers-teams-to-proactively-manage-cloud-risk-with-new-cloud-native-protection-offering
Killexams : Fortinet to Continue to Bring Together Top Technology and Golf Talent at Fortinet Championship PGA TOUR Event

SUNNYVALE, Calif., July 14, 2022 (GLOBE NEWSWIRE) --

John Maddison, CMO and EVP of Products at Fortinet
"Fortinet is excited to once again welcome our community of partners and customers to another Fortinet Championship event in beautiful Napa Valley, kicking off the start of a new PGA TOUR season. Last year, over twenty thought leaders shared insights and solutions on the latest evolutions of cybersecurity as part of the Security Summit Symposium, which was complemented with our Technology Expo of over 35 partners showcasing new and emerging technologies. A highlight of our partnership with the PGA TOUR through this event will remain how we benefit our community and customers, as well as local non-profit organizations."

News Summary
Fortinet® FTNT, a global leader in broad, integrated and automated cybersecurity solutions, today announced the upcoming Fortinet Championship PGA TOUR tournament event lineup, including the Security Summit Symposium, Technology Vendor Exposition, and the Fortinet and the Fortinet Championship philanthropic support for local non-profits that share Fortinet's vision in building an inclusive and diverse workplace to close the cybersecurity skills gap. The Fortinet Championship event will be held in Napa, California at the Silverado Resort and Spa, September 15–18, 2022.

Fortinet Championship Security Summit and Technology Vendor Expo
The four-day event will build on last year's highly successful inaugural Fortinet Championship event and will include a Security Summit and Technology Vendor Exposition. It will bring together some of the world's best golfers and their worldwide fans with the Fortinet community of customers, partners, executives—some of the technology industry's most accomplished leaders to discuss the latest security innovations and networking trends.

Top Leaders Discuss the Future of Cybersecurity 

  • This year's Fortinet Championship Security Summit Symposium will take place on Tuesday September 13 and Friday, September 16.
  • The Security Summit includes a full-day Symposium of keynotes, panels and roundtable discussions with leading experts with an agenda built to offer innovative ideas and best practices that will help drive digital transformation forward. 
  • Topics that will be facilitated at the Security Summit Symposium include – but are not limited to: managing cyber risk, securing critical infrastructure, how security is critical to innovation, securing cloud migration and connectivity, zero trust, and closing the cyber skills gap.
  • The Fortinet Leadership Executive Panel will also return for the 2022 Security Summit Symposium, offering attendees the opportunity to hear from industry luminaries and leaders that includes Ken Xie, founder, chairman of the board, and CEO, Michael Xie, founder, president, and CTO, and Keith Jensen, CFO, about the future of cybersecurity and Fortinet's role in driving that future forward.
  • Members from the recently announced Fortinet Public Sector Advisory Council will attend to facilitate discussions tied to understanding, assessing, managing, and mitigating cyber risk.

Technology Leaders Showcase Technology Innovations

  • The Security Summit will be complemented with a Technology Vendor Expo, taking place in parallel with the tournament dates of September 12-18.
  • Together, Fortinet and global partners will showcase the latest evolutions of cybersecurity, including new and emerging technologies, as well as the power of integration.
  • Technology partners that will be included in the Expo include AT&T, AWS, Google Cloud, and Intel.

Coming Together to Secure Data, Devices, and People Everywhere
Net proceeds from the Fortinet Championship support nonprofits that share the Fortinet vision of building an inclusive and diverse workplace by helping close the cybersecurity skills gap as part of its mission to secure people, devices, and data everywhere and help make possible a digital world that you can always trust.

Fortinet has designated proceeds from the Fortinet Championship to benefit nonprofit organizations in the areas of science, technology, engineering, and math (STEM); diversity and inclusion; and reskilling programs, as well as local Napa-area nonprofits.

  • The Fortinet Championship is pleased to pair with STEM-related initiatives with organizations that include the Alaina's Voice Foundation, Cameron Champ Foundation, Eat. Learn. Play Foundation, and WINE WOMEN. 
  • Additionally, local Napa Valley non-profits that will benefit from the Fortinet Championship include the Keller Restaurant Relief Fund, Napa Valley Vine Trail Foundation, Travis Air Force Base Reserves, and Queen of the Valley Foundation.
  • In 2019, Fortinet pledged to train 1 million people globally over 5 years through its Training Advancement Agenda (TAA) and Fortinet Training Institute programs to help close the cybersecurity skills gap.
  • These and other programs, such as Fortinet's TAA Initiative, which provides free Network Security Expert (NSE) Certifications and training, as well as academic partner and education outreach programs are cultivating a skilled, inclusive, and diverse cybersecurity workforce will continue Fortinet efforts to help close the cybersecurity skills gap.

Fortinet Brand Ambassadors
At the inaugural Fortinet Championship event last September, Fortinet brought together the world's best players and technology leaders, an event that culminated in Max Homa winning the Fortinet Championship trophy on Sunday. Later that year, Max, the inaugural champion, was named a Fortinet Global Brand Ambassador. David Lipsky was added as a Fortinet Brand Ambassador in 2022.

  • About Max Homa: A Southern California native, Max earned a golf scholarship to attend the University of California Berkeley. He went on to win the PAC-12 Conference Championship, as well as the 2013 NCAA Championship individual honors, and competed in the 2013 US Open as an amateur. Max won his first PGA TOUR event at the 2019 Wells Fargo Championship. Since then, Max has had numerous great finishes on the PGA TOUR, highlighted by three wins. After claiming his first TOUR win at the 2021 Genesis Invitational, Max followed up this season by winning the 2021 Fortinet Championship and 2022 Wells Fargo Championship. We expect that Max will return to Napa this year to defend his title.
  • About David Lipsky: A rookie on the PGA TOUR this year, David also grew up in California. He attended college at Northwestern University in Illinois, and David won multiple tournaments in his college career, including the 2010 Big Ten Individual Championship, and was honored as an All-American in 2011. Following his graduation in 2011, David turned professional. David secured a win at the Korn Ferry Tour's TPC San Antonio Challenge in 2020.

Additional Fortinet Championship Detail

  • The Fortinet Championship begins on September 15 and will kick off the 2022-2023 PGA TOUR season.
  • The event will provide fans with an authentic Napa experience, featuring the best of Napa Valley food & wine, popular musicians, and a field of 156 of the world's best golfers -- all in one event.
  • The inaugural PGA TOUR season event hosts many of the best golfers in the world. The player field has previously included elite players such as Jon Rahm, Rory Mcllroy, 2021 Champion Max Homa, and many more.
  • The Fortinet Championship Concert Series will be held on the South Course at Silverado Resort and Spa immediately following completion of play Friday, September 16 and Saturday, September 17. Friday night will feature multi-platinum country music star Cole Swindell with special guest Gavin DeGraw. Grammy nominated powerhouse OneRepublic, with special guest X Ambassadors, will take the stage on Saturday night. Concert admission is included in the cost of the daily ticket.

For more information on the Fortinet Championship, the Concert Series, and to buy tickets, please visit www.fortinetchampionship.com.

Watch to Learn More

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

Supporting Quote
"We are excited to again have the Fortinet Championship as an integral part of the FedExCup season in September. Our players, their families, and our fans love visiting Napa Valley. In its inaugural year, the Fortinet team did a stellar job of meeting and often exceeding the PGA TOUR's high standards for our tournaments. With Fortinet, we expect another spectacular event this year and appreciate its support in continuing to grow the popularity of our sport as well as the charitable impact the Fortinet Championship has on the local community."

— Tyler Dennis, President of the PGA TOUR

Additional Resources

About Fortinet
Fortinet FTNT makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world's largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet's Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

About Alaina's Voice Foundation
Alaina's Voice's mission is to inspire hope and kindness in our communities through education, music, and mental health initiatives. Alaina Maria Housley died on November 7, 2018 when someone entered the Borderline Bar in Thousand Oaks California while she was line dancing and shot her, and 11 other people, taking their lives. While her body is gone, her voice will live on. The foundation believes stopping one act of senseless violence in the future may not be measurable, but it is worth saving one more life and one more family the heartache.

About Cameron Champ Foundation
The Cameron Champ Foundation is committed to unlocking the potential in and transforming the lives of youth from underserved and underrepresented communities. The foundation is dedicated to providing greater accessibility and inclusion in the game of golf, and to supporting kids in all aspects of their lives.

About Eat. Learn. Play. Foundation
Stephen and Ayesha Curry's Eat. Learn. Play. Foundation is committed to unlocking the amazing potential of every child by fighting to end childhood hunger, ensuring students have access to a quality education, and providing safe places for all children to play and be active. We focus on three vital pillars of a healthy childhood: nutrition, education, and physical activity. Our investments meet kids where they are most often - in school, at home, and in their neighborhood.

About Keller Restaurant Relief Fund
With the ever-evolving landscape devasting the hospitality profession, the Keller Restaurant Relief Fund exists to help your favorite server, the bartender who knows your mood, the chef who sends an extra course, the porter who is integral to everything we do, or the management and administrative teams who work tirelessly behind the scenes. In a world that has changed dramatically over the course of mere months, the need is still there.

About Napa Valley Vine Trail
The Napa Valley Vine Trail Coalition is a grass-roots nonprofit with a vision to build a walking/biking trail system to connect the entire Napa Valley--physically, artistically, and culturally. They are working to design, fund, construct, and maintain 47 safe and scenic miles of level, paved, family-friendly, dog-friendly, free-access Class I trail, stretching from the Vallejo Ferry to Calistoga. The Vine Trail provides many safety, health, environmental, economic and tourism benefits for the Napa community.

About Queen of the Valley Foundation
Queen of the Valley Foundation was established in 1969 by 32 visionary community leaders. Many of these individuals had been involved in raising the funds needed to build the hospital a decade earlier. They formalized their efforts by creating a separate corporation that would continue to provide support into the future. The Founders' mission was to make certain that funding would always be available to sustain the highest-quality health care possible, and that it would be available to everyone who visits, lives and works in Napa County. The foundation has raised more than $119 million for facilities, equipment, technology, programs and services at Queen of the Valley Medical Center through the generosity of the Napa Valley community.

Travis Air Force Base Reserves
The 621st Contingency Response Wing at Travis Air Force Base is highly-specialized in training and rapidly deploying personnel to quickly open airfields and establish, expand, sustain, and coordinate air mobility operations. From wartime taskings to disaster relief, the 621st extends Air Mobility Command's in deploying people and equipment around the globe. Their mission is Advise, Direct, and Project Airpower … anytime, anywhere. Always ready. Always resilient. Always caring.

About WINE WOMEN
WINE WOMEN was launched in 2016 with the goal to advance women's professional careers in the wine industry by fostering and nurturing talent, providing networking and training opportunities, and advocating for better professional opportunities. Members enjoy educational, networking and career-building opportunities through Professional Forums, Wine Women events and mentorship. Opportunities to learn and grow (and build one's resume) also exist through volunteering in a variety of exciting roles and utilizing benefits at our partners' programs.


© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Thu, 14 Jul 2022 05:13:00 -0500 text/html https://www.benzinga.com/pressreleases/22/07/g28069839/fortinet-to-continue-to-bring-together-top-technology-and-golf-talent-at-fortinet-championship-pga
Killexams : Fortinet Reports Second Quarter 2022 Financial Results

Fortinet, Inc.

Second Quarter 2022 Highlights

  • Product revenue of $400.7 million, up 34% year over year

  • Total revenue of $1.03 billion, up 29% year over year

  • Bookings of $1.38 billion, up 42% year over year1

  • Billings of $1.30 billion, up 36% year over year2

  • Deferred revenue of $3.93 billion, up 35% year over year

  • GAAP operating margin of 19.0%

  • Non-GAAP operating margin of 24.8%2

  • GAAP diluted net income per share attributable to Fortinet, Inc. of $0.213

  • Non-GAAP diluted net income per share attributable to Fortinet, Inc. of $0.242,3

  • Cash flow from operations of $323.4 million

  • Free cash flow of $283.5 million2

  • Cash paid for share repurchases of $800.0 million 

SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the second quarter ended June 30, 2022.

“We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than one million dollars. Large enterprise companies continue to favor Fortinet’s industry leading cost for performance advantage and integrated platform strategy,” said Ken Xie, Founder, Chairman, and Chief Executive Officer. “Fortinet’s market share gains are being driven by the convergence of networking and security and an accelerating focus on vendor consolidation with our Core Platform and Platform Extension solutions designed to secure our customers’ entire infrastructure from the data center to the cloud.”

Financial Highlights for the Second Quarter of 2022

  • Revenue: Total revenue was $1.03 billion for the second quarter of 2022, an increase of 28.6% compared to $801.1 million for the same quarter of 2021.

  • Product Revenue: Product revenue was $400.7 million for the second quarter of 2022, an increase of 34.3% compared to $298.3 million for the same quarter of 2021.

  • Service Revenue: Service revenue was $629.4 million for the second quarter of 2022, an increase of 25.2% compared to $502.8 million for the same quarter of 2021.

  • Bookings1: Total bookings were $1.38 billion for the second quarter of 2022, an increase of 42.1% compared to $967.9 million for the same quarter of 2021. Backlog was $349.9 million as of June 30, 2022, an increase of $188.0 million compared to $161.9 million as of December 31, 2021.

  • Billings2: Total billings were $1.30 billion for the second quarter of 2022, an increase of 35.7% compared to $960.9 million for the same quarter of 2021.

  • Deferred Revenue: Total deferred revenue was $3.93 billion as of June 30, 2022, an increase of 35.3% compared to $2.91 billion as of June 30, 2021.

  • GAAP Operating Income and Margin: GAAP operating income was $195.3 million for the second quarter of 2022, representing a GAAP operating margin of 19.0%. GAAP operating income was $147.5 million for the same quarter of 2021, representing a GAAP operating margin of 18.4%.

  • Non-GAAP Operating Income and Margin2: Non-GAAP operating income was $255.4 million for the second quarter of 2022, representing a non-GAAP operating margin of 24.8%. Non-GAAP operating income was $203.3 million for the same quarter of 2021, representing a non-GAAP operating margin of 25.4%.

  • GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.3: GAAP net income was $173.5 million for the second quarter of 2022, compared to GAAP net income of $137.5 million for the same quarter of 2021. GAAP diluted net income per share was $0.21 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.16 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.

  • Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.2,3: Non-GAAP net income was $194.1 million for the second quarter of 2022, compared to non-GAAP net income of $158.7 million for the same quarter of 2021. Non-GAAP diluted net income per share was $0.24 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to $0.19 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.

  • Cash Flow: Cash flow from operations was $323.4 million for the second quarter of 2022, compared to $418.2 million for the same quarter of 2021.

  • Free Cash Flow2: Free cash flow was $283.5 million for the second quarter of 2022, compared to $394.7 million for the same quarter of 2021.

  • Share Repurchase Program3: During the three and six months ended June 30, 2022, Fortinet repurchased 14.4 million and 25.8 million shares of its common stock at an average price of $55.45 and $57.82 per share and for an aggregate purchase price of $800.0 million and $1.49 billion, respectively. During the three and six months ended June 30, 2021, Fortinet repurchased 2.3 million shares of its common stock at an average price of $40.28 per share and for an aggregate purchase price of $91.6 million. In July 2022, Fortinet’s board of directors authorized a $1.0 billion increase in the authorized stock repurchase under our share repurchase program. As of August 1, 2022, approximately $1.03 billion remained available for future share repurchases.

Guidance

For the third quarter of 2022, Fortinet currently expects:

  • Revenue in the range of $1.105 billion to $1.135 billion

  • Billings in the range of $1.385 billion to $1.415 billion

  • Non-GAAP gross margin in the range of 75.0% to 76.0%

  • Non-GAAP operating margin in the range of 25.0% to 26.0%

  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.26 to $0.28, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

For the fiscal year 2022, Fortinet currently expects:

  • Revenue in the range of $4.350 billion to $4.400 billion

  • Service revenue in the range of $2.620 billion to $2.670 billion

  • Billings in the range of $5.560 billion to $5.640 billion

  • Non-GAAP gross margin in the range of 75.0% to 76.0%

  • Non-GAAP operating margin in the range of 25.0% to 26.0%

  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $1.01 to $1.06, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matters. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

1 Bookings represents the total value of all orders received during the period. Backlog represents orders received but not fulfilled and excludes Alaxala Networks Corporation. When an order is fulfilled, billings and revenue are recognized.
2 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
3 All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Third Quarter 2022 Conference Participation Schedule:

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (NASDAQ: FTNT) makes possible a digital world that we can trust through its mission to protect people, devices and data everywhere. This is why many of the world’s largest enterprises, service providers and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Core Platform and Platform Extension products deliver broad, integrated and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. The Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda, provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMoM, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPlanner, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future market share gains, guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2022, statements regarding the momentum in our business and future growth expectations, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic, the war in Ukraine, economic challenges, fears of a recession, and any actual recession, and the effects of increased inflation in certain geographies; significantly heightened supply chain challenges due to the current global environment; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic, the war in Ukraine and the effects of increased inflation in certain geographies; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

COVID-19 Impact

While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending September 30, 2022, our annual results for 2022, and beyond. To highlight the uncertainty remaining for the three-month period ending September 30, 2022, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. Additionally, significantly heightened supply chain challenges are impacting businesses around the globe. If we experience significant changes in our billings growth rates or if we are unable to supply product to meet demand, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share attributable to Fortinet, Inc. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies, a tax adjustment required for an effective tax rate on a non-GAAP basis and adjustments attributable to non-controlling interests, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions)

June 30,
2022

December 31,
2021

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

710.0

$

1,319.1

Short-term investments

1,020.6

1,194.0

Marketable equity securities

24.3

38.6

Accounts receivable—net

919.5

807.7

Inventory

195.2

175.8

Prepaid expenses and other current assets

83.3

65.4

Total current assets

2,952.9

3,600.6

LONG-TERM INVESTMENTS

188.5

440.8

PROPERTY AND EQUIPMENT—NET

814.6

687.6

DEFERRED CONTRACT COSTS

456.9

423.3

DEFERRED TAX ASSETS

480.2

342.3

GOODWILL AND OTHER INTANGIBLE ASSETS—NET

166.7

188.7

OTHER ASSETS

234.7

235.8

TOTAL ASSETS

$

5,294.5

$

5,919.1

LIABILITIES AND EQUITY (DEFICIT)

CURRENT LIABILITIES:

Accounts payable

$

193.1

$

148.4

Accrued liabilities

241.2

197.3

Accrued payroll and compensation

187.4

195.0

Deferred revenue

2,013.2

1,777.4

Total current liabilities

2,634.9

2,318.1

DEFERRED REVENUE

1,918.8

1,675.5

INCOME TAX LIABILITIES

67.1

79.5

LONG-TERM DEBT

989.4

988.4

OTHER LIABILITIES

63.9

59.2

Total liabilities

5,674.1

5,120.7

COMMITMENTS AND CONTINGENCIES

EQUITY (DEFICIT):

Common stock

0.8

0.8

Additional paid-in capital

1,237.3

1,253.6

Accumulated other comprehensive loss

(23.4

)

(4.8

)

Accumulated deficit

(1,607.6

)

(467.9

)

Total Fortinet, Inc. stockholders’ equity (deficit)

(392.9

)

781.7

Non-controlling interests

13.3

16.7

Total equity (deficit)

(379.6

)

798.4

TOTAL LIABILITIES AND EQUITY (DEFICIT)

$

5,294.5

$

5,919.1

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)

Three Months Ended

Six Months Ended

June 30,
2022

June 30,
2021

June 30,
2022

June 30,
2021

REVENUE:

Product

$

400.7

$

298.3

$

771.7

$

539.0

Service

629.4

502.8

1,213.2

972.4

Total revenue

1,030.1

801.1

1,984.9

1,511.4

COST OF REVENUE:

Product

155.2

115.6

316.2

206.9

Service

95.6

71.3

188.4

136.6

Total cost of revenue

250.8

186.9

504.6

343.5

GROSS PROFIT:

Product

245.5

182.7

455.5

332.1

Service

533.8

431.5

1,024.8

835.8

Total gross profit

779.3

614.2

1,480.3

1,167.9

OPERATING EXPENSES:

Research and development

124.3

106.6

249.2

203.8

Sales and marketing

415.5

326.9

803.1

630.9

General and administrative

45.4

34.4

84.0

66.4

Gain on intellectual property matter

(1.2

)

(1.2

)

(2.3

)

(2.3

)

Total operating expenses

584.0

466.7

1,134.0

898.8

OPERATING INCOME

195.3

147.5

346.3

269.1

INTEREST INCOME

2.4

1.2

3.7

2.3

INTEREST EXPENSE

(4.5

)

(4.5

)

(9.0

)

(5.8

)

OTHER INCOME (EXPENSE)—NET

(9.3

)

0.8

(18.4

)

(1.2

)

INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT

183.9

145.0

322.6

264.4

PROVISION FOR (BENEFIT FROM) INCOME TAXES

2.4

7.5

(5.7

)

19.7

LOSS FROM EQUITY METHOD INVESTMENT

(8.1

)

(16.6

)

NET INCOME INCLUDING NON-CONTROLLING INTERESTS

173.4

137.5

311.7

244.7

Less: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX

(0.1

)

(0.2

)

NET INCOME ATTRIBUTABLE TO FORTINET, INC.

$

173.5

$

137.5

$

311.9

$

244.7

Net income per share attributable to Fortinet, Inc.(a):

Basic

$

0.22

$

0.17

$

0.39

$

0.30

Diluted

$

0.21

$

0.16

$

0.38

$

0.29

Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.(a):

Basic

795.4

816.7

799.4

815.9

Diluted

810.1

835.4

815.4

833.7

(a) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)

Six Months Ended

June 30,
2022

June 30,
2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income including non-controlling interests

$

311.7

$

244.7

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation

107.9

102.1

Amortization of deferred contract costs

107.1

81.8

Depreciation and amortization

50.6

36.2

Amortization of investment premiums

2.8

2.9

Loss from equity method investment

16.6

Other

22.8

0.3

Changes in operating assets and liabilities, net of impact of business combinations:

Accounts receivable—net

(119.3

)

135.6

Inventory

(31.2

)

(20.1

)

Prepaid expenses and other current assets

(18.2

)

(16.4

)

Deferred contract costs

(140.6

)

(124.8

)

Deferred tax assets

(136.3

)

(25.8

)

Other assets

(16.7

)

(11.8

)

Accounts payable

52.7

(9.5

)

Accrued liabilities

30.1

21.3

Accrued payroll and compensation

(6.8

)

18.7

Other liabilities

5.7

(1.2

)

Deferred revenue

480.6

300.1

   Net cash provided by operating activities

719.5

734.1

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of investments

(389.1

)

(1,262.5

)

Sales of investments

3.0

71.4

Maturities of investments

797.3

600.3

Purchases of property and equipment

(162.5

)

(75.6

)

Purchases of investment in privately held company

(75.0

)

Payments made in connection with business combinations, net of cash acquired

(10.3

)

   Net cash provided by (used in) investing activities

248.7

(751.7

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from long-term borrowings, net of discount and underwriting fees

989.4

Payments for debt issuance costs

(2.4

)

Repurchase and retirement of common stock

(1,491.2

)

(91.6

)

Proceeds from issuance of common stock

15.9

15.8

Taxes paid related to net share settlement of equity awards

(99.9

)

(76.0

)

Other

(1.1

)

(0.1

)

   Net cash provided by (used in) financing activities

(1,576.3

)

835.1

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(1.0

)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(609.1

)

817.5

CASH AND CASH EQUIVALENTS—Beginning of period

1,319.1

1,061.8

CASH AND CASH EQUIVALENTS—End of period

$

710.0

$

1,879.3

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)

Reconciliation of net cash provided by operating activities to free cash flow

Three Months Ended

June 30,
2022

June 30,
2021

Net cash provided by operating activities

$

323.4

$

418.2

Less: Purchases of property and equipment

(39.9

)

(23.5

)

Free cash flow

$

283.5

$

394.7

Net cash provided by (used in) investing activities

$

294.1

$

(278.2

)

Net cash used in financing activities

$

(830.3

)

$

(120.9

)

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income attributable to Fortinet, Inc. and diluted net income per share attributable to Fortinet, Inc.

Three Months Ended June 30, 2022

Three Months Ended June 30, 2021

GAAP Results

Adjustments

Non-GAAP Results

GAAP Results

Adjustments

Non-GAAP Results

Operating income

$

195.3

$

60.1

(a)

$

255.4

$

147.5

$

55.8

(b)

$

203.3

Operating margin

19.0

%

24.8

%

18.4

%

25.4

%

Adjustments:

Stock-based compensation

55.3

53.5

Amortization of acquired intangible assets

6.0

3.5

Gain on intellectual property matter

(1.2

)

(1.2

)

Tax adjustment

(39.1

)

(c)

(34.6

)

(c)

Adjustments attributable non-controlling interests

(0.4

)

(d)

Net income attributable to Fortinet, Inc.

$

173.5

$

20.6

$

194.1

$

137.5

$

21.2

$

158.7

Diluted net income per share attributable to Fortinet, Inc.(e)

$

0.21

$

0.24

$

0.16

$

0.19

Shares used in diluted net income per share attributable to Fortinet, Inc. calculations(e)

810.1

810.1

835.4

835.4

(a) To exclude $55.3 million of stock-based compensation and $6.0 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2022.
(b) To exclude $53.5 million of stock-based compensation and $3.5 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2021.
(c) Non-GAAP financial information is adjusted to an effective tax rate of 17% and 21% in the three months ended June 30, 2022 and 2021, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(d) Adjustments related to the non-GAAP results attributable to non-controlling interests, which were adjusted to an effective tax rate of 31% for the subsidiary of Alaxala Networks Corporation in the three months ended June 30, 2022.
(e) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Reconciliation of total revenue to total billings

Three Months Ended

June 30,
2022

June 30,
2021

Total revenue

$

1,030.1

$

801.1

Add: Change in deferred revenue

274.1

159.8

Total billings

$

1,304.2

$

960.9

Investor Contact:

Media Contact:

Peter Salkowski

Sandra Wheatley

Fortinet, Inc.

Fortinet, Inc.

408-331-4595

408-391-9408

psalkowski@fortinet.com

swheatley@fortinet.com

Wed, 03 Aug 2022 08:45:00 -0500 en-AU text/html https://au.news.yahoo.com/fortinet-reports-second-quarter-2022-200500161.html Killexams : Fortinet Empowers Teams to Proactively Manage Cloud Risk with New Cloud-native Protection Offering, Available Now on AWS

Fortinet, Inc.

FortiCNP simplifies cloud security, accelerates risk management, and delivers near-real-time threat protection with zero-permission malware detection capabilities

SUNNYVALE, Calif., July 26, 2022 (GLOBE NEWSWIRE) -- AWS re:Inforce

News Summary
Fortinet® (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, today announced FortiCNP, a new built-in-the-cloud offering that correlates security findings from across an organization’s cloud footprint to facilitate friction-free cloud security operations. FortiCNP’s patented Resource Risk Insights (RRI)TM technology produces context-rich, actionable insights that help teams prioritize the remediation and mitigation of risks with the highest potential impact on cloud workload security without slowing down the business.

Also announced today, Fortinet is an Amazon Web Services (AWS) Launch Partner for Amazon GuardDuty Malware Protection, which provides agentless malware detection capabilities across AWS data stores, disk volumes, and workload images. FortiCNP supports Amazon GuardDuty Malware Protection, delivering near-real-time threat protection with zero-permission capabilities to actively scan running workloads with no impact or delays to operations.

The rapid pace of cloud adoption as part of a hybrid IT architecture allows organizations to achieve faster time to market and increased responsiveness to customer needs. However, the cloud can increase overall security risk, which is often addressed by adding new security solutions to an organization’s existing infrastructure. Each of these solutions comes with a litany of alerts that often require manual analysis and can quickly compound across an organization’s cloud deployment.

“Without the proper tools, security professionals must manually sift through hundreds, if not thousands, of security alerts on a daily basis,” said Doug Cahill, Vice President, Analyst Services and Senior Analyst at Enterprise Strategy Group (ESG). “Inundated with alerts, teams can face decreased productivity, inefficient workflows, and security risks accumulating faster than they can be addressed. FortiCNP helps cut through the noise, pointing teams to the security alerts that matter most.”

Customers are already experiencing the benefits of FortiCNP’s approach to cloud-native risk management:

“FortiCNP gives us comprehensive cloud visibility with an intuitive dashboard that allows us to easily track risk management over time,” said Caio Hyppolito, Chief Technology Officer (CTO) at BK Bank. “Most importantly, it enables our team to focus on securing high-priority resources instead of spending time working through long lists of security findings. Integrations with the products we already have allow us to get even more value out of our deployment and allow broader visibility and easier, more proactive cloud security management.”

Partners are also leveraging FortiCNP to enhance their offerings:

“As an AWS Level 1 MSSP Competency Partner, Observian is dedicated to ensuring our service offerings support customers in building scalable, secure cloud deployments. Observian is thrilled to deliver a new service featuring Fortinet’s new Cloud-Native Protection solution, FortiCNP, with Observian’s trusted and proven managed detection and response services,” said Scott Plamondon, Co-Founder and VP of Architecture at Observian. “FortiCNP allows customers to easily integrate, more quickly operationalize, and immediately benefit from AWS’s native-cloud security services with more targeted and actionable alerts tuned to their needs and less noise. Our customers that rely on Observian’s Security Operations team will benefit from our ability to even better triage and report on those alerts 24/7.”

A defining feature of FortiCNP is integration with AWS security products and services, and the Fortinet Security Fabric, which helps organizations more effectively secure their cloud environments and maximize their cloud security investments.

"At AWS, we provide our customers with smarter tools to easily take action and mitigate risk faster,” said Jon Ramsey, Vice President (VP) AWS Security. "Security Partners like Fortinet with their FortiCNP offering built on AWS and integrated with our security services like Amazon GuardDuty give customers a choice to simplify and accelerate their cloud journey with cloud-native security services."

FortiCNP delivers the following features that allow security teams to effectively manage risk in the cloud:

  • FortiCNP Resource Risk Insights (RRI)TM leverages a patented risk score algorithm to contextualize security findings from Fortinet Cloud Security solutions and AWS products and services to provide teams with prioritized, context-rich, and actionable insights about resources that present the highest risk and need immediate attention.

  • By analyzing, correlating, and contextualizing security findings from AWS cloud security services with FortiCNP, customers maximize the value and benefit from easy deployment capabilities offered by Amazon GuardDuty Malware Protection, Amazon Inspector, AWS Security Hub, AWS CloudTrail, and AWS Organizations.

  • Integrations with Amazon GuardDuty Malware Protection leverage a zero-permission, agentless approach for detecting malware throughout the data supply chain by scanning cloud data stores, disk volumes, and workload images.

  • Integrations with digital workflow solutions turn FortiCNP RRIs into intuitively actionable workflow tasks as part of the cloud infrastructure lifecycle.

  • For customers utilizing Fortinet Cloud Security solutions such as FortiGate-VM and FortiWeb, RRIs will be able to trigger stop-gap remediations to block high-impact threats.

  • FortiCNP continuously scans and monitors changes to cloud data with industry-leading threat intelligence and content scanning powered by FortiGuard Labs.

FortiCNP will be continually expanded to ingest more types of cloud security findings to provide broader context across more cloud workloads. Enabling consistent workflows that scale security across the public cloud helps teams Improve security coverage, productivity, and risk mitigation—at the speed of the cloud. Cloud-native integrations facilitate reduced friction from deployment through operations. With consistent workflows utilizing cloud-native services across multiple clouds, security teams will no longer be required to master the intricacies of each cloud platform’s security service operational model. This will help security teams increase productivity by effectively working through cloud security backlog, mitigating risk, and quantifiably improving cloud security over time.

“FortiCNP is the latest example of Fortinet’s commitment to delivering Fabric solutions that extend enterprise security with cloud-native integrations,” said John Maddison, EVP of Products and CMO at Fortinet. “We’re pleased to continue to deliver solutions that allow security professionals to transition from time-consuming triage and manual analysis processes to proactively securing their cloud workloads and easily understand their cloud security risk.”

Today’s announcement builds on Fortinet and AWS’ relationship to support customers in accelerating their journey to AWS. Fortinet has also been named an AWS Security Competency Partner, with FortiCNP serving as the latest example of Fortinet’s commitment to delivering purpose-built cloud security solutions that integrate with AWS products and solutions. Fortinet delivers one of the broadest sets of use cases with comprehensive security for AWS workloads including firewall, security gateway, intrusion prevention, and web application security. With flexible procurement options in AWS Marketplace, including contract and consumption offerings, and a range of available form factors, including Software-as-a-Service (SaaS), virtual machine (VM), container, and application programming interface (API) based protection, customers can address a broad variety of AWS security and procurement requirements to protect their AWS workloads.

Get a free trial of FortiCNP at AWS Marketplace: https://www.forticnp-aws.com

Additional Resources

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-O

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCNP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Tue, 26 Jul 2022 03:39:00 -0500 en-CA text/html https://ca.finance.yahoo.com/news/fortinet-empowers-teams-proactively-manage-143000571.html
Killexams : Fortinet Reports Second Quarter 2022 Financial Results

Fortinet, Inc.

Second Quarter 2022 Highlights

  • Product revenue of $400.7 million, up 34% year over year

  • Total revenue of $1.03 billion, up 29% year over year

  • Bookings of $1.38 billion, up 42% year over year1

  • Billings of $1.30 billion, up 36% year over year2

  • Deferred revenue of $3.93 billion, up 35% year over year

  • GAAP operating margin of 19.0%

  • Non-GAAP operating margin of 24.8%2

  • GAAP diluted net income per share attributable to Fortinet, Inc. of $0.213

  • Non-GAAP diluted net income per share attributable to Fortinet, Inc. of $0.242,3

  • Cash flow from operations of $323.4 million

  • Free cash flow of $283.5 million2

  • Cash paid for share repurchases of $800.0 million 

SUNNYVALE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the second quarter ended June 30, 2022.

“We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than one million dollars. Large enterprise companies continue to favor Fortinet’s industry leading cost for performance advantage and integrated platform strategy,” said Ken Xie, Founder, Chairman, and Chief Executive Officer. “Fortinet’s market share gains are being driven by the convergence of networking and security and an accelerating focus on vendor consolidation with our Core Platform and Platform Extension solutions designed to secure our customers’ entire infrastructure from the data center to the cloud.”

Financial Highlights for the Second Quarter of 2022

  • Revenue: Total revenue was $1.03 billion for the second quarter of 2022, an increase of 28.6% compared to $801.1 million for the same quarter of 2021.

  • Product Revenue: Product revenue was $400.7 million for the second quarter of 2022, an increase of 34.3% compared to $298.3 million for the same quarter of 2021.

  • Service Revenue: Service revenue was $629.4 million for the second quarter of 2022, an increase of 25.2% compared to $502.8 million for the same quarter of 2021.

  • Bookings1: Total bookings were $1.38 billion for the second quarter of 2022, an increase of 42.1% compared to $967.9 million for the same quarter of 2021. Backlog was $349.9 million as of June 30, 2022, an increase of $188.0 million compared to $161.9 million as of December 31, 2021.

  • Billings2: Total billings were $1.30 billion for the second quarter of 2022, an increase of 35.7% compared to $960.9 million for the same quarter of 2021.

  • Deferred Revenue: Total deferred revenue was $3.93 billion as of June 30, 2022, an increase of 35.3% compared to $2.91 billion as of June 30, 2021.

  • GAAP Operating Income and Margin: GAAP operating income was $195.3 million for the second quarter of 2022, representing a GAAP operating margin of 19.0%. GAAP operating income was $147.5 million for the same quarter of 2021, representing a GAAP operating margin of 18.4%.

  • Non-GAAP Operating Income and Margin2: Non-GAAP operating income was $255.4 million for the second quarter of 2022, representing a non-GAAP operating margin of 24.8%. Non-GAAP operating income was $203.3 million for the same quarter of 2021, representing a non-GAAP operating margin of 25.4%.

  • GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.3: GAAP net income was $173.5 million for the second quarter of 2022, compared to GAAP net income of $137.5 million for the same quarter of 2021. GAAP diluted net income per share was $0.21 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.16 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.

  • Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.2,3: Non-GAAP net income was $194.1 million for the second quarter of 2022, compared to non-GAAP net income of $158.7 million for the same quarter of 2021. Non-GAAP diluted net income per share was $0.24 for the second quarter of 2022, based on 810.1 million diluted weighted-average shares outstanding, compared to $0.19 for the same quarter of 2021, based on 835.4 million diluted weighted-average shares outstanding.

  • Cash Flow: Cash flow from operations was $323.4 million for the second quarter of 2022, compared to $418.2 million for the same quarter of 2021.

  • Free Cash Flow2: Free cash flow was $283.5 million for the second quarter of 2022, compared to $394.7 million for the same quarter of 2021.

  • Share Repurchase Program3: During the three and six months ended June 30, 2022, Fortinet repurchased 14.4 million and 25.8 million shares of its common stock at an average price of $55.45 and $57.82 per share and for an aggregate purchase price of $800.0 million and $1.49 billion, respectively. During the three and six months ended June 30, 2021, Fortinet repurchased 2.3 million shares of its common stock at an average price of $40.28 per share and for an aggregate purchase price of $91.6 million. In July 2022, Fortinet’s board of directors authorized a $1.0 billion increase in the authorized stock repurchase under our share repurchase program. As of August 1, 2022, approximately $1.03 billion remained available for future share repurchases.

Guidance

For the third quarter of 2022, Fortinet currently expects:

  • Revenue in the range of $1.105 billion to $1.135 billion

  • Billings in the range of $1.385 billion to $1.415 billion

  • Non-GAAP gross margin in the range of 75.0% to 76.0%

  • Non-GAAP operating margin in the range of 25.0% to 26.0%

  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.26 to $0.28, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

For the fiscal year 2022, Fortinet currently expects:

  • Revenue in the range of $4.350 billion to $4.400 billion

  • Service revenue in the range of $2.620 billion to $2.670 billion

  • Billings in the range of $5.560 billion to $5.640 billion

  • Non-GAAP gross margin in the range of 75.0% to 76.0%

  • Non-GAAP operating margin in the range of 25.0% to 26.0%

  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $1.01 to $1.06, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matters. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

1 Bookings represents the total value of all orders received during the period. Backlog represents orders received but not fulfilled and excludes Alaxala Networks Corporation. When an order is fulfilled, billings and revenue are recognized.
2 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
3 All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Third Quarter 2022 Conference Participation Schedule:

Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (NASDAQ: FTNT) makes possible a digital world that we can trust through its mission to protect people, devices and data everywhere. This is why many of the world’s largest enterprises, service providers and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Core Platform and Platform Extension products deliver broad, integrated and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. The Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda, provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMoM, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPlanner, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future market share gains, guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2022, statements regarding the momentum in our business and future growth expectations, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic, the war in Ukraine, economic challenges, fears of a recession, and any actual recession, and the effects of increased inflation in certain geographies; significantly heightened supply chain challenges due to the current global environment; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic, the war in Ukraine and the effects of increased inflation in certain geographies; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

COVID-19 Impact

While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending September 30, 2022, our annual results for 2022, and beyond. To highlight the uncertainty remaining for the three-month period ending September 30, 2022, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. Additionally, significantly heightened supply chain challenges are impacting businesses around the globe. If we experience significant changes in our billings growth rates or if we are unable to supply product to meet demand, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.

Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share attributable to Fortinet, Inc. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies, a tax adjustment required for an effective tax rate on a non-GAAP basis and adjustments attributable to non-controlling interests, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions)

June 30,
2022

December 31,
2021

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

710.0

$

1,319.1

Short-term investments

1,020.6

1,194.0

Marketable equity securities

24.3

38.6

Accounts receivable—net

919.5

807.7

Inventory

195.2

175.8

Prepaid expenses and other current assets

83.3

65.4

Total current assets

2,952.9

3,600.6

LONG-TERM INVESTMENTS

188.5

440.8

PROPERTY AND EQUIPMENT—NET

814.6

687.6

DEFERRED CONTRACT COSTS

456.9

423.3

DEFERRED TAX ASSETS

480.2

342.3

GOODWILL AND OTHER INTANGIBLE ASSETS—NET

166.7

188.7

OTHER ASSETS

234.7

235.8

TOTAL ASSETS

$

5,294.5

$

5,919.1

LIABILITIES AND EQUITY (DEFICIT)

CURRENT LIABILITIES:

Accounts payable

$

193.1

$

148.4

Accrued liabilities

241.2

197.3

Accrued payroll and compensation

187.4

195.0

Deferred revenue

2,013.2

1,777.4

Total current liabilities

2,634.9

2,318.1

DEFERRED REVENUE

1,918.8

1,675.5

INCOME TAX LIABILITIES

67.1

79.5

LONG-TERM DEBT

989.4

988.4

OTHER LIABILITIES

63.9

59.2

Total liabilities

5,674.1

5,120.7

COMMITMENTS AND CONTINGENCIES

EQUITY (DEFICIT):

Common stock

0.8

0.8

Additional paid-in capital

1,237.3

1,253.6

Accumulated other comprehensive loss

(23.4

)

(4.8

)

Accumulated deficit

(1,607.6

)

(467.9

)

Total Fortinet, Inc. stockholders’ equity (deficit)

(392.9

)

781.7

Non-controlling interests

13.3

16.7

Total equity (deficit)

(379.6

)

798.4

TOTAL LIABILITIES AND EQUITY (DEFICIT)

$

5,294.5

$

5,919.1

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)

Three Months Ended

Six Months Ended

June 30,
2022

June 30,
2021

June 30,
2022

June 30,
2021

REVENUE:

Product

$

400.7

$

298.3

$

771.7

$

539.0

Service

629.4

502.8

1,213.2

972.4

Total revenue

1,030.1

801.1

1,984.9

1,511.4

COST OF REVENUE:

Product

155.2

115.6

316.2

206.9

Service

95.6

71.3

188.4

136.6

Total cost of revenue

250.8

186.9

504.6

343.5

GROSS PROFIT:

Product

245.5

182.7

455.5

332.1

Service

533.8

431.5

1,024.8

835.8

Total gross profit

779.3

614.2

1,480.3

1,167.9

OPERATING EXPENSES:

Research and development

124.3

106.6

249.2

203.8

Sales and marketing

415.5

326.9

803.1

630.9

General and administrative

45.4

34.4

84.0

66.4

Gain on intellectual property matter

(1.2

)

(1.2

)

(2.3

)

(2.3

)

Total operating expenses

584.0

466.7

1,134.0

898.8

OPERATING INCOME

195.3

147.5

346.3

269.1

INTEREST INCOME

2.4

1.2

3.7

2.3

INTEREST EXPENSE

(4.5

)

(4.5

)

(9.0

)

(5.8

)

OTHER INCOME (EXPENSE)—NET

(9.3

)

0.8

(18.4

)

(1.2

)

INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT

183.9

145.0

322.6

264.4

PROVISION FOR (BENEFIT FROM) INCOME TAXES

2.4

7.5

(5.7

)

19.7

LOSS FROM EQUITY METHOD INVESTMENT

(8.1

)

(16.6

)

NET INCOME INCLUDING NON-CONTROLLING INTERESTS

173.4

137.5

311.7

244.7

Less: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX

(0.1

)

(0.2

)

NET INCOME ATTRIBUTABLE TO FORTINET, INC.

$

173.5

$

137.5

$

311.9

$

244.7

Net income per share attributable to Fortinet, Inc.(a):

Basic

$

0.22

$

0.17

$

0.39

$

0.30

Diluted

$

0.21

$

0.16

$

0.38

$

0.29

Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.(a):

Basic

795.4

816.7

799.4

815.9

Diluted

810.1

835.4

815.4

833.7

(a) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

FORTINET, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)

Six Months Ended

June 30,
2022

June 30,
2021

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income including non-controlling interests

$

311.7

$

244.7

Adjustments to reconcile net income to net cash provided by operating activities:

Stock-based compensation

107.9

102.1

Amortization of deferred contract costs

107.1

81.8

Depreciation and amortization

50.6

36.2

Amortization of investment premiums

2.8

2.9

Loss from equity method investment

16.6

Other

22.8

0.3

Changes in operating assets and liabilities, net of impact of business combinations:

Accounts receivable—net

(119.3

)

135.6

Inventory

(31.2

)

(20.1

)

Prepaid expenses and other current assets

(18.2

)

(16.4

)

Deferred contract costs

(140.6

)

(124.8

)

Deferred tax assets

(136.3

)

(25.8

)

Other assets

(16.7

)

(11.8

)

Accounts payable

52.7

(9.5

)

Accrued liabilities

30.1

21.3

Accrued payroll and compensation

(6.8

)

18.7

Other liabilities

5.7

(1.2

)

Deferred revenue

480.6

300.1

   Net cash provided by operating activities

719.5

734.1

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of investments

(389.1

)

(1,262.5

)

Sales of investments

3.0

71.4

Maturities of investments

797.3

600.3

Purchases of property and equipment

(162.5

)

(75.6

)

Purchases of investment in privately held company

(75.0

)

Payments made in connection with business combinations, net of cash acquired

(10.3

)

   Net cash provided by (used in) investing activities

248.7

(751.7

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from long-term borrowings, net of discount and underwriting fees

989.4

Payments for debt issuance costs

(2.4

)

Repurchase and retirement of common stock

(1,491.2

)

(91.6

)

Proceeds from issuance of common stock

15.9

15.8

Taxes paid related to net share settlement of equity awards

(99.9

)

(76.0

)

Other

(1.1

)

(0.1

)

   Net cash provided by (used in) financing activities

(1,576.3

)

835.1

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(1.0

)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(609.1

)

817.5

CASH AND CASH EQUIVALENTS—Beginning of period

1,319.1

1,061.8

CASH AND CASH EQUIVALENTS—End of period

$

710.0

$

1,879.3

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)

Reconciliation of net cash provided by operating activities to free cash flow

Three Months Ended

June 30,
2022

June 30,
2021

Net cash provided by operating activities

$

323.4

$

418.2

Less: Purchases of property and equipment

(39.9

)

(23.5

)

Free cash flow

$

283.5

$

394.7

Net cash provided by (used in) investing activities

$

294.1

$

(278.2

)

Net cash used in financing activities

$

(830.3

)

$

(120.9

)

Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income attributable to Fortinet, Inc. and diluted net income per share attributable to Fortinet, Inc.

Three Months Ended June 30, 2022

Three Months Ended June 30, 2021

GAAP Results

Adjustments

Non-GAAP Results

GAAP Results

Adjustments

Non-GAAP Results

Operating income

$

195.3

$

60.1

(a)

$

255.4

$

147.5

$

55.8

(b)

$

203.3

Operating margin

19.0

%

24.8

%

18.4

%

25.4

%

Adjustments:

Stock-based compensation

55.3

53.5

Amortization of acquired intangible assets

6.0

3.5

Gain on intellectual property matter

(1.2

)

(1.2

)

Tax adjustment

(39.1

)

(c)

(34.6

)

(c)

Adjustments attributable non-controlling interests

(0.4

)

(d)

Net income attributable to Fortinet, Inc.

$

173.5

$

20.6

$

194.1

$

137.5

$

21.2

$

158.7

Diluted net income per share attributable to Fortinet, Inc.(e)

$

0.21

$

0.24

$

0.16

$

0.19

Shares used in diluted net income per share attributable to Fortinet, Inc. calculations(e)

810.1

810.1

835.4

835.4

(a) To exclude $55.3 million of stock-based compensation and $6.0 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2022.
(b) To exclude $53.5 million of stock-based compensation and $3.5 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended June 30, 2021.
(c) Non-GAAP financial information is adjusted to an effective tax rate of 17% and 21% in the three months ended June 30, 2022 and 2021, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(d) Adjustments related to the non-GAAP results attributable to non-controlling interests, which were adjusted to an effective tax rate of 31% for the subsidiary of Alaxala Networks Corporation in the three months ended June 30, 2022.
(e) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022.

Reconciliation of total revenue to total billings

Three Months Ended

June 30,
2022

June 30,
2021

Total revenue

$

1,030.1

$

801.1

Add: Change in deferred revenue

274.1

159.8

Total billings

$

1,304.2

$

960.9

Investor Contact:

Media Contact:

Peter Salkowski

Sandra Wheatley

Fortinet, Inc.

Fortinet, Inc.

408-331-4595

408-391-9408

psalkowski@fortinet.com

swheatley@fortinet.com

Wed, 03 Aug 2022 08:11:00 -0500 en-NZ text/html https://nz.finance.yahoo.com/news/fortinet-reports-second-quarter-2022-200500161.html
Killexams : Fortinet to Announce Second Quarter 2022 Financial Results

Fortinet, Inc.

SUNNYVALE, Calif., July 05, 2022 (GLOBE NEWSWIRE) --

News Summary
Fortinet® (NASDAQ: FTNT), a global leader in broad, integrated, and automated cybersecurity solutions, announced that it will hold a conference call to discuss its second quarter 2022 financial results on Wednesday, August 3 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).

Fortinet's financial results conference call will be broadcast live in listen-only mode on the company’s investor relations website at http://investor.fortinet.com. While not required, it is recommended that you join at least 10 minutes prior to the event start.

The CEO and CFO’s prepared remarks, supplemental slides and a call replay will be accessible from the Quarterly Earnings page on the Investor Relations page of Fortinet's website at https://investor.fortinet.com/quarterly-earnings.

About Fortinet
Fortinet (NASDAQ: FTNT) makes possible a digital world that we can always trust through its mission to protect people, devices, and data everywhere. This is why the world’s largest enterprises, service providers, and government organizations choose Fortinet to securely accelerate their digital journey. The Fortinet Security Fabric platform delivers broad, integrated, and automated protections across the entire digital attack surface, securing critical devices, data, applications, and connections from the data center to the cloud to the home office. Ranking #1 in the most security appliances shipped worldwide, more than 580,000 customers trust Fortinet to protect their businesses. And the Fortinet NSE Training Institute, an initiative of Fortinet’s Training Advancement Agenda (TAA), provides one of the largest and broadest training programs in the industry to make cyber training and new career opportunities available to everyone. Learn more at https://www.fortinet.com, the Fortinet Blog, or FortiGuard Labs.

FTNT-F

Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAP, FortiAppEngine, FortiAppMonitor, FortiAuthenticator, FortiBalancer, FortiBIOS, FortiBridge, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCenter, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDirector, FortiDNS, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLocator, FortiLog, FortiMeter, FortiMoM, FortiMonitor, FortiNAC, FortiPartner, FortiPenTest, FortiPhish, FortiPortal, FortiPresence , FortiProtect, FortiProxy, FortiRecorder, FortiReporter, FortiSASE, FortiScan, FortiSDNConnector, FortiSIEM, FortiSDWAN, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiVoIP, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLCOS and FortiWLM.

Other trademarks belong to their respective owners. Fortinet has not independently Verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments. This news release may contain forward-looking statements that involve uncertainties and assumptions, such as statements regarding technology releases among others. Changes of circumstances, product release delays, or other risks as stated in our filings with the Securities and Exchange Commission, located at www.sec.gov, may cause results to differ materially from those expressed or implied in this press release. If the uncertainties materialize or the assumptions prove incorrect, results may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Fortinet assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to update these forward-looking statements.

Tue, 05 Jul 2022 02:13:00 -0500 en-CA text/html https://ca.finance.yahoo.com/news/fortinet-announce-second-quarter-2022-130000271.html
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