Fortinet Q3 profit falls 4% amid charges

Fortinet Inc.'s FTNT third-quarter earnings fell 4% on stock-based compensation charges and other items as the network-security company reported its first year-to-year profit decline in more than a year.

Shares were down 11% at $22 in recent after-hours trading. Through Tuesday's close, the stock is up 25% in the past 12 months.

Fortinet, the maker of FortiGate products, has posted stronger revenue for more than two years.

Fortinet reported a profit of $17.2 million, or 10 cents a share, down from $17.9 million, or 11 cents a share, a year earlier. Excluding stock-based compensation, asset sales and other items, earnings were up at 14 cents from 13 cents. Revenue increased 17% to $136.3 million.

The company in July expected per-share earnings of 14 cents on revenue of $134 million to $137 million.

Gross margin fell to 72.3% from 73.3%.

Operating expenses rose 23%.

Billings were up 22% at $145 million.

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