Fortinet today reported third quarter revenue of $316.6 million, which is a 22 percent increase from the same quarter of 2015. However, this is only a 2.7 percent increase compared to the company’s second quarter.
Fortinet reports GAAP net income of $6.3 million for third quarter, compared to GAAP net income of $8.2 million for the same quarter of 2015.
Non-GAAP net income for Fortinet’s third quarter is $32.2 million, or $0.18 per diluted share, compared to $24.1 million, or $0.14 per diluted share for the same quarter in 2015.
Earlier this month, Fortinet released preliminary third quarter financial results, which were in the range of $343 million and $348 million — well below its previously expected range of $372 million and $376 million.
While the company has identified a plush market for security spending, its execution of sales in North America performed below expectations causing the company to yield even lower results than it expected.
During the company’s earnings call it placed emphasis on the need for better marketing tactics and recently restructured its sales team with more experienced personnel.
Security is a highly competitive market and Fortinet is up against established players like BlueCoat, Cisco, Dell, Juniper Networks, and Palo Alto Networks. Many of these companies have greater marketing, product depth, financial resources, geographic presence, and brand recognition than Fortinet, according analyst Catharine Trebnick of Dougherty & Company.
Fortinet’s stock closed today at $29.91 down slightly from yesterday’s close of $30.18.