Northern, WI 04/12/2013 (usastockreport) – The computer-network security provider, Fortinet Inc (NASDAQ:FTNT) (Closed: $18.99), dropped 17 percent after it announced its first-quarter sales preliminary report and its profits missed average analyst estimates. In a statement the Sunnyvale, California-based company has said that its profits excluding a few costs was in the range of 10 cents per share in the quarter that ended, in comparison to the 12 cents per share average analyst estimate. Fortinet sales were $134 million-$136 million against the projected $140.4 million.
Many segments weak
In a statement, Ken Xie the Chief Executive Officer said that the bleak economic scenario in Europe, Latin America, Africa and the Middle East in conjunction with the shortages in Inventory had resulted in the lower-than-expected results. In contrast, the demand among U.S companies and in Asia had been healthy. With reference to the internet access providers, Xie said that some deals in the service provider segment in the U.S had not materialized in the manner that had been expected which had a negative impact on the company’s financial results.
Fortinet is a provider of network security solutions. Via its subscription services and products it is in the business of providing protection against network security threats to service providers, enterprises and government entities across the globe. The Unified Threat Management (UTM) solution which is its flagship is made up of its FortiGate virtual and physical appliance products. These products provide an array of networking and security functions such as firewall, antivirus, virtual private networking (VPN), application control, Web filtering and intrusion prevention amongst others.