The great security god Pan is alive

panWhile the rest of the industry is pretty flat, security outfit Palo Alto Networks (Pan) reported its strongest revenue growth in 10 quarters and forecast better than expected growth.

The Great Pan is apparently doing well as governments and companies spend more to protect themselves from cyber-attacks.

Pan and its rivals such as FireEye and Fortinet provide cloud based advanced threat protection and malware analysis products, which have helped them grab market share from traditional firewall suppliers.

Pan’s Chief Executive Goat Mark McLaughlin said on a conference call with analysts that he was seeing gains everywhere.

McLaughlin said Pan was winning larger deals with larger customers. He said the company had replaced Cisco and Checkpoint as the preferred security provider in some companies in the fourth quarter.

Pan’s customer base grew 35 percent to more than 26,000 with over 2000 new customers in the quarter ended July 31. Billings rose 69 percent to $393.6 million.

Pan’s revenue rose 59.3 percent to $283.9 million in the quarter, beating Wall Street’s estimates of $256.4 million. Revenue growth was higher in the second quarter of fiscal 2013.

Net loss widened to $46 million from $32.1 million. Excluding items, the company’s profit of 28 cents per share was better than analysts’ estimate of 25 cents.

Pan expects revenues to increase 46-48 percent to $280-$284 million in the current quarter ending October.