Palo Alto Q1 Loss Widens, But Tops Street - Update

(RTTNews) - Network security software maker Palo Alto Networks Inc. (PANW), Monday reported a loss for the first quarter that widened from a year ago, hurt largely by one-time charges. However, adjusted profit for the quarter improved from a year ago, as revenues jumped, with both earnings and revenues trumping Wall Street estimates.

Santa Clara, California-based Palo Alto's first-quarter loss widened to $30.1 million or $0.38 per share from last year's loss of $7.9 million or $0.11 per share last year.

Results for the quarter included amortization expense of intangible assets of $1.5 million and interest expense related to convertible notes of $5.5 million, among other items.

Excluding special items, adjusted earnings for the quarter improved to $12.8 million or $0.15 per share from $6.2 million or $0.08 per share last year. On average, 31 analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Palo Alto, which provides network security technologies, said revenues for the first quarter grew to $192.3 million from $128.2 million last year. Analysts had a consensus revenue estimate of $181.7 million for the quarter.

"We are very pleased with our first quarter performance. Once again robust new customer acquisition and expansion within our existing customer base drove record billings, revenue and deferred revenue," said CFO Steffan Tomlinson.

Looking forward to the second quarter, the company expects adjusted earnings of $0.16 to $0.17 per share on revenues of $200 million to $204 million. Analysts currently expect earnings of $0.16 per share on revenues of $198 million.

Palo Alto Networks provides enterprise security platform to enterprises, service providers, and government entities.

PANW closed Monday's trading at $113.26, up $4.33 or 3.98%, on the NYSE. The stock, however, slipped $4.76 or 4.20% in the after-hours trade.