Gorilla Technology Group to Participate in Upcoming Investor Event

LONDON, May 05, 2023 (GLOBE NEWSWIRE) — Gorilla Technology Group Inc. (“Gorilla”) (NASDAQ: GRRR), a global provider of AI-based edge video analytics, IoT technologies, and cybersecurity, today announced its participation in the following investor event:

  • 18th Annual Needham Technology & Media Conference. This in-person event will be held in New York City, from Tuesday, May 16 to Thursday, May 18, 2023.

This information is also available in the Events section of the Company’s IR website: https://investors.gorilla-technology.com/.

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About Gorilla Technology Group Inc.
Gorilla, headquartered in London U.K., is a global solution provider in security intelligence, network intelligence, business intelligence and IoT technology. Gorilla develops a wide range of solutions including Smart Cities, Smart Retail, Enterprise Security, and Smart Media. In addition, Gorilla provides a complete Security Convergence Platform to government institutions, telecom companies and private enterprises with network surveillance and cyber security.

Gorilla places an emphasis on offering leading technology, expert service, and precise delivery, and ensuring top-of-the-line, intelligent and strong edge AI solutions that enable clients to improve operational performance and efficiency. With continuous core technology development, Gorilla will deliver edge AI solutions to managed service providers, distributors, system integrators, and hardware manufacturers. For more information, please visit our website: Gorilla-Technology.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are based on estimates, assumptions, and expectations. Actual results and performance could differ materially and adversely from those expressed or implied in forward-looking statements. Gorilla does not undertake any obligation to update any forward-looking statements, except as required by law.

Media Contact:
Jeff Fox
The Blueshirt Group for Gorilla
+1 (415) 828-8298
[email protected]

Investor Relations Contact:
Gary Dvorchak
The Blueshirt Group for Gorilla
+1 (323) 240-5796
[email protected]

Scott McCabe
The Blueshirt Group for Gorilla
+1 (917) 434-3275
[email protected]

GlobeNewswire Distribution ID 8833172

Edison Next signs contract with Berco for new photovoltaic plant

Edison Next and Berco allied in a path towards sustainability

Edison Next Solar Farm

Edison Next, an Edison Group company that focuses on decarbonisation and ecological transition, has embarked on a path towards sustainability with Berco, a ThyssenKrupp Group company specialising in the manufacture of undercarriage components and systems for tracked earthmoving machinery and equipment for the overhaul and maintenance of such components.

MILAN, Italy, May 05, 2023 (GLOBE NEWSWIRE) — Edison Next, an Edison Group company that focuses on decarbonisation and ecological transition, has embarked on a path towards sustainability with Berco, a ThyssenKrupp Group company specialising in the manufacture of undercarriage components and systems for tracked earthmoving machinery and equipment for the overhaul and maintenance of such components.

Under the 20-year onsite PPA (Power Purchase Agreement) contract signed with Berco, Edison Next will be responsible for the design, construction, management and maintenance of a ground-mounted photovoltaic plant with a capacity of about 7.1 MWp for the Copparo (Province of Ferrara, Emilia-Romagna) site, Berco’s historical and main plant, which is considered one of the world’s largest production centres in the sector, covering an area of 550,000 m2 and employing around 1,400 people.

The new photovoltaic plant will cover a total area of 96,000 m2 and will consist of 70 inverters and 11,600 PV modules, most of which will be mounted on single-axis tracking structures and the remainder on fixed structures. The plant will generate around 11,000 MWh per year, covering 9% of the plant’s electricity needs through renewables. Therefore, the plant will contribute to the reduction of energy costs on the one hand, and to the reduction of the environmental impact on the other hand, by avoiding the emission into the atmosphere of more than 3,800 tonnes of CO2 per year, equal to the amount absorbed by about 115,000 plants. The share of self-consumption of renewable electricity self-produced by Edison Next and destined for the Copparo site will be just over 80%; the remainder can be stored or fed into the grid.

“We are pleased to begin a virtuous path of energy transition with Berco,” said Marco Steardo, Director of Industry at Edison Next. “Photovoltaics is a mature, consolidated and reliable technology,” he continued, “that ensures benefits in terms of energy and emission reductions, and increases grid independence, limiting exposure to price volatility. Today, it is the key technology from which to start on the path to decarbonisation”. “The realisation of this project is further confirmation of our company’s clear desire to maintain a technological leadership not only in products but also in the production process,” commented Piero Bruno, CEO of Berco, “through a sustainability plan that will see us operate at 360 degrees on all aspects of the conscious use of primary sources, energy and water necessary for the production of our products.” According to Patrick Buchmann, CEO of the ThyssenKrupp Forged Technologies Business Unit, of which Berco is part, the cooperation with Edison Next will significantly contribute to the important path that Forged Technologies and Berco have undertaken at the Copparo plant to achieve the environmental impact of its production in line with ThyssenKrupp’s 2030 emission reduction targets.

For more information:
Press Office LaPresse [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dc24e2e7-27ef-401e-a447-cab90b2daeca

The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.

GlobeNewswire Distribution ID 8833042

WillScot Mobile Mini to Participate in Barclays Americas Select Franchise Conference

PHOENIX, May 05, 2023 (GLOBE NEWSWIRE) — WillScot Mobile Mini Holdings Corp. (“WillScot Mobile Mini” or the “Company”) (Nasdaq: WSC), the North American leader in innovative flexible space and storage solutions, today announced that Tim Boswell, President and Chief Financial Officer, and Nick Girardi, Senior Director of Treasury and Investor Relations, will participate in a presentation and host private investor meetings at the Barclays Americas Select Franchise Conference in London, United Kingdom, on May 9, 2023. The presentation will take place at 11:30 am GMT+1.

About WillScot Mobile Mini

WillScot Mobile Mini trades on the Nasdaq stock exchange under the ticker symbol “WSC.” Headquartered in Phoenix, Arizona, the Company is a leading business services provider specializing in innovative flexible space and storage solutions. WillScot Mobile Mini services diverse end markets across all sectors of the economy from a network of approximately 240 branch locations and additional drop lots throughout the United States, Canada, and Mexico.

Additional Information and Where to Find It

Additional information can be found on the company’s website at www.willscotmobilemini.com.

Contact Information
Investor Inquiries: Media Inquiries:
Nick Girardi Jake Saylor
investors@willscotmobilemini.com [email protected]

GlobeNewswire Distribution ID 8832395

Poste Italiane: net profit up 9.4% in Q1. CEO Del Fante: we are a safe harbour for customers

Poste Italiane Financials

Poste Italiane is staying the course on growth and ended the first quarter of 2023 with a solid financial performance, broadly in line with the year’s guidance. The Group’s net profit amounted to €540 million, an increase of 9.4% compared to the previous year (€494 million).

MILAN, Italy, May 05, 2023 (GLOBE NEWSWIRE) — Poste Italiane is staying the course on growth and ended the first quarter of 2023 with a solid financial performance, broadly in line with the year’s guidance. The Group’s net profit amounted to €540 million, an increase of 9.4% compared to the previous year (€494 million). In the first three months of 2023, Poste achieved an operating result of €767 million, a strong growth of 11.2% year-on-year thanks to the positive contribution of all business lines. Highlights included solid revenue growth in Q1 2023, up 8.1% year-on-year to €3 billion, supported by positive business trends.

The Group, which operates in the delivery, logistics, savings, financial services and insurance sectors, highlighted the predictable cost base and “continued discipline to mitigate the impact of inflation”. Matteo Del Fante, CEO and General Manager of Poste Italiane, expressed his satisfaction. “First quarter results are very strong and offer significant visibility on our guidance for 2023,” the CEO stressed, “with solid financial performance and profitability generation from all business lines while continuing to maintain a focus on costs. Business trends were favourable in all business lines. Our customers continue to see Poste Italiane as a safe haven for their savings and most of their daily needs. Our financial products protect our customers from market turbulence throughout the economic cycle, with over 90% of invested financial assets protected.”

Del Fante explained that “volumes in our B2C parcels segment increased in the context of a stable market, while mail revenues improved thanks to repricing actions and higher value-added services. In the Financial Services segment, the dynamics of interest rates favoured an increase in the recurring interest margin and, at the same time, postal savings distribution fees are in line with the 2023 targets”. The CEO of Poste Italiane can also boast a positive balance sheet for Insurance Services: “this was a particularly strong quarter due to the effect of IFRS17. We achieved strong results in a challenging market, with positive net inflows of €2.1 billion together with a redemption rate of less than 4%”. Poste Italiane also completed the takeover bid for Net Insurance. The Payments and Mobile segment once again saw double-digit growth, fully capturing the increase in cashless payments in Italy, with the value of transactions up 18% year-on-year, supported by strong growth in e-commerce. “The Poste Energia offer,” CEO Del Fante commented, “has been very well received by our customers, reaching around 200,000 contracts signed to date.” The General Manager of Poste also has a positive outlook for the future: “The solid results at the beginning of the year position us very well to achieve our goals for 2023. Above all, we are committed to rewarding all our stakeholders with sustainable performance in 2023 and onwards, starting with the dividend balance of €0.44 per share that will be paid on 21 June.”

For more information:
Press Office LaPresse [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2618b9de-5f2f-4784-8b1f-dc7e63918f99

The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress. 

GlobeNewswire Distribution ID 8832846

AKWEL: REVENUE +11.7% IN Q1 2023

        Thursday 04 May 2023

REVENUE +11.7% IN Q1 2023

AKWEL (FR0000053027, AKW, PEA-eligible), the automotive and HGV equipment and systems manufacturer specialising in fluid management, mechanisms and structural parts for electric vehicles, posted consolidated revenue of €274.6m in the first quarter of 2023, up +11.7%.

Consolidated revenue for the 1st quarter of 2023 (from 1 January to 31 March)

In € millions – unaudited 2023 2022 Variation LFL variation (*)
1st quarter 274.6 245.8 +11.7% +14.6%

(*) Comparing like-for-like figures

With the global automotive market having returned to growth, AKWEL saw its revenue on a like-for-like basis advance +14.6% during the first quarter of the 2023 financial year.

The geographical breakdown of revenue by production zone was as follows:

  • France: €77.5m (+10.9%)
  • Europe (excluding France) and Africa: €80.6m (+16.6%)
  • North America: €74.1m (+4.2%)
  • Asia and the Middle East (including Turkey): €41.3m (+20.4%)
  • South America: €1.1m (-15.4%)

Most of the product lines achieved progress, particularly the biggest such as the Cooling (+14.8%), Mechanisms (+19.8%), Fuels (+17.7%) and Air (+19.2%) businesses. The rapid ramp-up of the new Structural Parts for Electric Vehicles business, which doubled its contribution to €5.8m, is worth noting.

The consolidated net cash position, excluding the impact of lease obligations, was €109.1m at the end of March 2023, with the investment budget more than doubling to €11.0m versus €5.1m in the first quarter of last year.

As stated recently during the publication of the 2022 results, as the automotive and HGV sector will continue to be disrupted in 2023 and due to the poor visibility given the current international economic and geopolitical tensions, AKWEL is expecting a slight increase in its sales during this financial year.

An independent, family-owned group listed on the Euronext Paris Stock Exchange, AKWEL is an automotive and HGV equipment and systems manufacturer specialising in fluid management, mechanisms and structural parts for electric vehicles. The Group achieves this by relying on state-of-the-art industrial and technological expertise in applying and processing materials (plastics, rubber, metal) and mechatronic integration.

Operating in 20 countries across every continent, AKWEL employs 9,500 people worldwide.

Euronext Paris – Compartment B – ISIN: FR0000053027 – Reuters: AKW.PA – Bloomberg: AKW:FP

Attachment

GlobeNewswire Distribution ID 1000808245

Fortinet Reports First Quarter 2023 Financial Results

First Quarter 2023 Highlights

  • Product revenue of $500.7 million, up 35% year over year
  • Service revenue of $761.6 million, up 30% year over year
  • Total revenue of $1.26 billion, up 32% year over year
  • Billings of $1.50 billion, up 30% year over year1
  • Deferred revenue of $4.88 billion, up 33% year over year
  • GAAP operating income of $273.5 million, up 81% year over year
  • Non-GAAP operating income of $334.0 million, up 59% year over year1
  • GAAP operating margin of 21.7%
  • Non-GAAP operating margin of 26.5%1
  • GAAP diluted net income per share attributable to Fortinet, Inc. of $0.31, up 82% year over year2
  • Non-GAAP diluted net income per share attributable to Fortinet, Inc. of $0.34, up 79% year over year1,2
  • Cash flow from operations of $677.5 million
  • Free cash flow of $647.2 million1

SUNNYVALE, Calif., May 04, 2023 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the first quarter ended March 31, 2023.

“Revenue growth in the first quarter was 32% due to strong growth in both product and service revenue. With 35% product revenue growth, we continue to gain market share while being a leading product revenue company in the cybersecurity industry. Service revenue grew over 30% for the first time in a quarter in six years. We believe we have a significant opportunity to continue to grow service revenue by upselling value-added security services to our large installed base of customers,” said Ken Xie, Founder, Chairman and Chief Executive Officer. “Companies of all sizes are increasingly recognizing that Fortinet’s integrated FortiOS and custom ASIC technology can deliver a lower total cost of ownership while improving the efficiency and efficacy of their security.”

Financial Highlights for the First Quarter of 2023

  • Product Revenue: Product revenue was $500.7 million for the first quarter of 2023, an increase of 35.0% compared to $371.0 million for the same quarter of 2022.
  • Service Revenue: Service revenue was $761.6 million for the first quarter of 2023, an increase of 30.5% compared to $583.8 million for the same quarter of 2022.
  • Revenue: Total revenue was $1.26 billion for the first quarter of 2023, an increase of 32.2% compared to $954.8 million for the same quarter of 2022.
  • Billings1: Total billings were $1.50 billion for the first quarter of 2023, an increase of 29.6% compared to $1.16 billion for the same quarter of 2022.
  • Deferred Revenue: Total deferred revenue was $4.88 billion as of March 31, 2023, an increase of 33.4% compared to $3.66 billion as of March 31, 2022.
  • GAAP Operating Income and Margin: GAAP operating income was $273.5 million for the first quarter of 2023, representing a GAAP operating margin of 21.7%. GAAP operating income was $151.0 million for the same quarter of 2022, representing a GAAP operating margin of 15.8%.
  • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $334.0 million for the first quarter of 2023, representing a non-GAAP operating margin of 26.5%. Non-GAAP operating income was $210.2 million for the same quarter of 2022, representing a non-GAAP operating margin of 22.0%.
  • GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.2: GAAP net income was $247.7 million for the first quarter of 2023, compared to GAAP net income of $138.4 million for the same quarter of 2022. GAAP diluted net income per share was $0.31 for the first quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.17 for the same quarter of 2022, based on 820.8 million diluted weighted-average shares outstanding.
  • Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.1,2: Non-GAAP net income was $269.7 million for the first quarter of 2023, compared to non-GAAP net income of $155.1 million for the same quarter of 2022. Non-GAAP diluted net income per share was $0.34 for the first quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding, compared to $0.19 for the same quarter of 2022, based on 820.8 million diluted weighted-average shares outstanding.
  • Cash Flow: Cash flow from operations was $677.5 million for the first quarter of 2023, compared to $396.1 million for the same quarter of 2022.
  • Free Cash Flow1: Free cash flow was $647.2 million for the first quarter of 2023, compared to $273.5 million for the same quarter of 2022.
  • Share Repurchase Program: In April 2023, Fortinet’s board of directors authorized a $1.0 billion increase in the authorized stock repurchase under our share repurchase program. As of May 4, 2023, approximately $1.53 billion remained available for future share repurchases.

Guidance

For the second quarter of 2023, Fortinet currently expects:

  • Revenue in the range of $1.280 billion to $1.320 billion
  • Billings in the range of $1.560 billion to $1.600 billion
  • Non-GAAP gross margin in the range of 75.5% to 76.5%
  • Non-GAAP operating margin in the range of 24.5% to 25.5%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.33 to $0.35, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 790 million to 800 million.

For the fiscal year 2023, Fortinet currently expects:

  • Revenue in the range of $5.425 billion to $5.485 billion
  • Service revenue in the range of $3.370 billion to $3.400 billion
  • Billings in the range of $6.750 billion to $6.810 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 $1.44 to $1.48, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 795 million to 805 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 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”.
2 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.

Second Quarter 2023 Conference Participation Schedule:

  • J.P. Morgan Global Technology, Media and Communications Conference
    May 23, 2023
  • Bank of America Global Technology Conference
    June 6, 2023

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) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Copyright © 2023 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, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDAST, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, 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 second quarter and full year 2023, statements regarding the momentum in our business and future growth expectations, statements regarding the opportunity to grow service revenue, 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 economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; instability in the global banking system; 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; the ongoing war in Ukraine, its related macroeconomic effects and our decision to reduce operations in Russia; 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 effects of increased inflation and interest rates in certain geographies, the COVID-19 pandemic and the war in Ukraine; 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 or tensions between China and Taiwan, 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.

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) 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. 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, 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. 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 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 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 and diluted net income per share calculated in accordance with GAAP.

FORTINET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions)

March 31,
2023
December 31,
2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,304.2 $ 1,682.9
Short-term investments 548.8 502.6
Marketable equity securities 26.1 25.5
Accounts receivable—net 1,087.2 1,261.7
Inventory 302.7 264.6
Prepaid expenses and other current assets 89.7 73.1
Total current assets 4,358.7 3,810.4
LONG-TERM INVESTMENTS 15.6 45.5
PROPERTY AND EQUIPMENT—NET 917.4 898.5
DEFERRED CONTRACT COSTS 536.9 518.2
DEFERRED TAX ASSETS 649.6 569.4
GOODWILL AND OTHER INTANGIBLE ASSETS—NET 178.9 184.0
OTHER ASSETS 175.2 202.0
TOTAL ASSETS $ 6,832.3 $ 6,228.0
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 238.4 $ 243.4
Accrued liabilities 346.7 266.3
Accrued payroll and compensation 213.4 219.4
Deferred revenue 2,463.3 2,349.3
Total current liabilities 3,261.8 3,078.4
DEFERRED REVENUE 2,417.6 2,291.0
INCOME TAX LIABILITIES 70.5 67.8
LONG-TERM DEBT 990.9 990.4
OTHER LIABILITIES 80.1 82.0
Total liabilities 6,820.9 6,509.6
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY (DEFICIT):
Common stock 0.8 0.8
Additional paid-in capital 1,327.4 1,284.2
Accumulated other comprehensive loss (18.1 ) (20.2 )
Accumulated deficit (1,298.7 ) (1,546.4 )
Total stockholders’ equity (deficit) 11.4 (281.6 )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 6,832.3 $ 6,228.0

 

FORTINET, INC.

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

Three Months Ended
  March 31,
2023
March 31,
2022
REVENUE:
Product $ 500.7 $ 371.0
Service 761.6 583.8
Total revenue 1,262.3 954.8
COST OF REVENUE:
Product 193.6 161.0
Service 114.2 92.8
Total cost of revenue 307.8 253.8
GROSS PROFIT:
Product 307.1 210.0
Service 647.4 491.0
Total gross profit 954.5 701.0
OPERATING EXPENSES:
Research and development 151.1 124.9
Sales and marketing 478.3 387.6
General and administrative 52.8 38.6
Gain on intellectual property matter (1.2 ) (1.1 )
Total operating expenses 681.0 550.0
OPERATING INCOME 273.5 151.0
INTEREST INCOME 20.6 1.3
INTEREST EXPENSE (5.0 ) (4.5 )
OTHER INCOME (EXPENSE)—NET 2.0 (9.1 )
INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT 291.1 138.7
PROVISION FOR (BENEFIT FROM) INCOME TAXES 21.3 (8.1 )
LOSS FROM EQUITY METHOD INVESTMENT (22.1 ) (8.5 )
NET INCOME INCLUDING NON-CONTROLLING INTERESTS 247.7 138.3
Less: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX (0.1 )
NET INCOME ATTRIBUTABLE TO FORTINET, INC. $ 247.7 $ 138.4
Net income per share attributable to Fortinet, Inc. (a):
Basic $ 0.32 $ 0.17
Diluted $ 0.31 $ 0.17
Weighted-average shares used to compute net income per share attributable to Fortinet, Inc. (a):
Basic 783.2 803.4
Diluted 793.4 820.8

(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)

Three Months Ended
  March 31,
2023
March 31,
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including non-controlling interests $ 247.7 $ 138.3
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation 56.3 53.2
Amortization of deferred contract costs 62.5 52.5
Depreciation and amortization 27.5 25.5
Amortization of investment premiums (discounts) (0.3 ) 1.7
Loss from equity method investment 22.1 8.5
Other 3.8 8.4
Changes in operating assets and liabilities, net of impact of business combinations:
Accounts receivable—net 171.1 15.4
Inventory (45.3 ) (13.5 )
Prepaid expenses and other current assets (16.0 ) (26.0 )
Deferred contract costs (81.2 ) (66.6 )
Deferred tax assets (81.1 ) (87.6 )
Other assets 4.5 (20.6 )
Accounts payable (4.1 ) 35.5
Accrued liabilities 80.0 68.2
Accrued payroll and compensation (6.0 ) (13.6 )
Other liabilities (4.7 ) 11.3
Deferred revenue 240.7 205.5
Net cash provided by operating activities 677.5 396.1
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments (207.2 ) (385.2 )
Sales of investments 3.0
Maturities of investments 195.0 459.4
Purchases of property and equipment (30.3 ) (122.6 )
Other 0.1
Net cash used in investing activities (42.4 ) (45.4 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase and retirement of common stock (691.2 )
Proceeds from issuance of common stock 21.2 11.0
Taxes paid related to net share settlement of equity awards (34.5 ) (64.8 )
Other (0.4 ) (1.0 )
Net cash used in financing activities (13.7 ) (746.0 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (0.1 ) (0.3 )
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 621.3 (395.6 )
CASH AND CASH EQUIVALENTS—Beginning of period 1,682.9 1,319.1
CASH AND CASH EQUIVALENTS—End of period $ 2,304.2 $ 923.5


Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures

(Unaudited, in millions, except per share amounts)

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
  March 31,
2023
March 31,
2022
Reconciliation of non-GAAP operating income:
GAAP operating income $ 273.5 $ 151.0
GAAP operating margin 21.7  % 15.8  %
Add back:
Stock‐based compensation 57.0 53.9
Amortization of acquired intangible assets 4.7 6.4
Gain on intellectual property matter (1.2 ) (1.1 )
Non‐GAAP operating income $ 334.0 $ 210.2
Non‐GAAP operating margin 26.5  % 22.0  %
Reconciliation of non-GAAP net income attributable to Fortinet, Inc.:
GAAP net income attributable to Fortinet, Inc. $ 247.7 $ 138.4
Add back:
Stock‐based compensation 57.0 53.9
Amortization of acquired intangible assets 4.7 6.4
Gain on intellectual property matter (1.2 ) (1.1 )
Tax adjustment (a) (38.5 ) (41.7 )
Adjustments attributable non-controlling interests (b) (0.8 )
Non-GAAP net income attributable to Fortinet, Inc. $ 269.7 $ 155.1
Non-GAAP net income per share attributable to Fortinet, Inc., diluted
Non-GAAP net income attributable to Fortinet, Inc. $ 269.7 $ 155.1
Non-GAAP shares used in diluted net income per share attributable to Fortinet, Inc. calculations (c) 793.4 820.8
Non-GAAP net income per share attributable to Fortinet, Inc., diluted (c) $ 0.34 $ 0.19
Reconciliation of non-GAAP net income per share attributable to Fortinet, Inc., diluted
GAAP net income per share attributable to Fortinet, Inc., diluted (c) $ 0.31 $ 0.17
Add back:
Non-GAAP adjustments to net income per share attributable to Fortinet, Inc. (c) 0.03 0.02
Non-GAAP net income per share attributable to Fortinet, Inc., diluted (c) $ 0.34 $ 0.19

(a) Non-GAAP financial information is adjusted to an effective tax rate of 17% in the three months ended March 31, 2023 and 2022, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(b) 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 March 31, 2022.
(c) 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 net cash provided by operating activities to free cash flow

Three Months Ended
March 31,
2023
March 31,
2022
Net cash provided by operating activities $ 677.5 $ 396.1
Less: Purchases of property and equipment (30.3 ) (122.6 )
Free cash flow $ 647.2 $ 273.5
Net cash used in investing activities $ (42.4 ) $ (45.4 )
Net cash used in financing activities $ (13.7 ) $ (746.0 )

Reconciliation of total revenue to total billings

Three Months Ended
March 31,
2023
March 31,
2022
Total revenue $ 1,262.3 $ 954.8
Add: Change in deferred revenue 240.6 205.0
Total billings $ 1,502.9 $ 1,159.8
Investor Contact: Media Contact:
Peter Salkowski Michelle Zimmermann
Fortinet, Inc. Fortinet, Inc.
408-331-4595 408-235-7700
[email protected] [email protected]

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