Fortinet cites strong growth in economic downturn

Following its first quarter of profitability in 2Q08, Fortinet continued profitable growth into the third quarter of 2008, recording a 42 percent increase in revenues and a 27 percent increase in billings year over year.

According to Ken Xie, founder, president and CEO, of Fortinet, even in a down economy, protecting the corporate network is not a discretionary expense.

“When companies are faced with budget cuts and need to do more with less, the value of an integrated security solution becomes even greater,” he said.

Xie claims that Fortinet’s appliances offer a significant reduction in CAPEX and OPEX over multiple point products.

He said based on the current level of demand for its network security appliances, the company was optimistic about future growth, expecting to end FY08 strongly.

“As a result, the company is aggressively hiring numerous key engineering and sales positions to help drive continued innovation and fulfil market opportunities,” Xie said.

During its third quarter, ending September 28, 2008, Fortinet grew billings 27 percent to $59 million and grew revenues 42 percent to $54 million, compared to the third quarter of 2007.

Additionally, deferred revenues grew by 32 percent year over year -contributing $5 million in cash, and enabling Fortinet to end the period with $109 million in total cash and cash equivalents and investments.

The company has shown non-GAAP operating profit in 2Q08, 3Q08 and year to date, and has been cash flow positive each year since 2005.

Analyst firm Frost & Sullivan recently awarded Fortinet the ‘2008 Global Market Leadership Award for UTM’.