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PCNSE - Palo Alto Networks Certified Security Engineer (PCNSE) PAN-OS 8.0 - BrainDump Information

Vendor Name : Palo-Alto
Exam Code : PCNSE
Exam Name : Palo Alto Networks Certified Security Engineer (PCNSE) PAN-OS 8.0
Questions and Answers : 237 Q & A
Updated On : February 20, 2019
PDF Download Mirror : PCNSE Braindumps
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PCNSE exam Dumps Source : Palo Alto Networks Certified Security Engineer (PCNSE) PAN-OS 8.0

Test Code : PCNSE
Test Name : Palo Alto Networks Certified Security Engineer (PCNSE) PAN-OS 8.0
Vendor Name : Palo-Alto
Q&A : 237 Real Questions

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Palo-Alto Palo Alto Networks Certified

Palo Alto Networks and IBM Canada Launch youth Cybersecurity program | killexams.com Real Questions and Pass4sure dumps

today is Safer internet Day, and it’s never to early in life to get formative years involved with initiatives to protect themselves and their work on-line.

Palo Alto Networks, British Columbia’s Ministry of training, and IBM Canada have come collectively to carry the Palo Alto Networks Cybersecurity Academy to excessive college students in B.C. so as to put together students for careers in cybersecurity.

excessive school students will now be able to receive arms-on practicing to take into account cyber threats and the most suitable how you can deal with or neutralize them. The lessons will focus on areas together with network safety competencies, including firewall installing, antivirus utility and 0-day vulnerabilities, and when students finished the 12-month program, they should be eligible for a cybersecurity associate certification.

“college students today are increasingly tech-savvy and connected now more than ever earlier than,” observed Rob Fleming, minister of schooling for British Columbia. “With the frequency of cyber assaults increasing, concentrated on each associations and people, it's essential that we put together college students with the knowledge and advantage to protect themselves and their records towards such threats.”

There are presently more than 450 Palo Alto Networks cybersecurity academies in over fifty five international locations up to now, however with the intention to launch in Canada, they worked with IBM and the Ministry of education to pilot the program with a purpose to make sure both technical and non-technical workforce may effectively roll the initiative out throughout the province. one of the greatest needs that arose all the way through the pilot become a scarcity of supplies, so Palo Alto Networks rolled out more than 20 digital labs for college students to learn about networking methods and installation firewalls.

“featuring these college students with foundational cybersecurity capabilities and capabilities will provide them a leg up when making use of for an entry-stage IT place and the probability to develop from there,” observed Dan Myers, senior manager of the Cybersecurity Academy at Palo Alto Networks. “while we are able to’t close the cybersecurity workforce gap overnight, we’re committed to helping college students of all ages take into account the cyber dangers obtainable and teaching them on the gold standard ways we will all give protection to our way of life within the digital age.”

lessons are provided each in category and through a blending on-line experience.

Cybersecurity is a very critical topic to accept as true with for groups each out and in fo the tech world. In mid-2018, Canada launched its own countrywide cyber security method (together with $500 million over five years) to address shortcomings and suggest a united entrance against malicious attackers. It changed into in that record that the govt promised they “will discover initiatives to drive home demand for cyber protection technologies and functions,” so students who enter this program are sure to locate calls for for his or her potential because the exit put up-secondary.


Palo Alto Networks partners With British Columbia and IBM Canada to Launch Canada's First Cybersecurity high college program | killexams.com Real Questions and Pass4sure dumps

VANCOUVER, British Columbia, Feb. 5, 2019 /PRNewswire/ -- In honour of Safer internet Day, Palo Alto Networks (NYSE: PANW), the global cybersecurity leader, nowadays announced the introduction of its Palo Alto Networks Cybersecurity Academy to excessive school students in Canada. Working in partnership with British Columbia's Ministry of schooling and IBM Canada, the application's mission is to bridge the advantage hole by way of getting ready students for careers in cybersecurity.   

Canadian high school college students can now receive hands-on training to take note the latest cyberthreats and the way premier to combat them. lessons focal point on network safety skills, including firewall installation, antivirus application and 0-day vulnerabilities. After efficiently completing the 12-month application, college students may be eligible for cybersecurity affiliate certification.

"students these days are more and more tech-savvy and linked now greater than ever earlier than. With the frequency of cyberattacks increasing, focused on each associations and individuals, it's essential that we put together students with the abilities and capabilities to protect themselves and their information against such threats," referred to the honourable Rob Fleming, minister of training for British Columbia.

As a part of the curriculum construction, Palo Alto Networks worked with British Columbia's Ministry of schooling and IBM Canada to pilot the academy in select high faculties to prepare technical and non-technical school on how to deliver the program across the province of British Columbia. in keeping with comments from the school, there was a need for virtual working towards labs to seamlessly roll out the application throughout British Columbia high faculties that may not have the substances to configure and manage complex lab environments. in conjunction with community construction group, Palo Alto Networks supplied a pilot atmosphere which include greater than 20 virtual labs for college kids to learn how to configure fundamental networking programs and firewall expertise used to comfortable important infrastructure.

"With the scarcity of knowledgeable cybersecurity specialists across the world, I consider our college students will benefit significantly from these courses in excessive faculty. we are capable of present the classes inside school and in a blended online mannequin, which offers students an introduction to the cybersecurity world, and in the event that they are impressed, to pursue a profession in this container," pointed out Gary Chan, distributed learning coordinator at Richmond virtual faculty.

"IBM is dedicated to innovation and STEM schooling, and we see positive, extremely good STEM education as a key driver of the nation's financial vitality," pointed out Krista Shibata, women in know-how and STEM education lead at IBM Canada. "Public-inner most partnerships such as these are a testomony to what can also be performed to aid discovering in excessive ability areas, comparable to cybersecurity. we are helping put together the Canadian formative years for brand new collar jobs. Nothing is greater crucial to our nation's economic success."

"presenting these college students with foundational cybersecurity abilities and competencies will supply them a leg up when applying for an entry-stage IT position and the possibility to develop from there," stated Dan Myers, senior supervisor of Palo Alto Networks Cybersecurity Academy at Palo Alto Networks. "while we can not shut the cybersecurity personnel hole overnight, we're committed to assisting college students of all ages take note the cyber dangers obtainable and educating them on the finest approaches we can all offer protection to our subculture in the digital age."

There are greater than 450 Cybersecurity Academies in more than 55 nations working towards the subsequent-era safety body of workers. For greater assistance, please discuss with the Palo Alto Networks Cybersecurity Academy page.

About Palo Alto NetworksWe are the international cybersecurity leader, primary for always difficult the safety fame quo. Our mission is to offer protection to our lifestyle within the digital age through fighting a hit cyberattacks. This has given us the privilege of safely enabling tens of thousands of businesses and their purchasers. Our pioneering safety working Platform emboldens their digital transformation with continuous innovation that seizes the newest breakthroughs in security, automation, and analytics. through supplying a real platform and empowering a transforming into ecosystem of trade-makers like us, we deliver totally beneficial and inventive cybersecurity across clouds, networks, and cell gadgets. discover greater at www.paloaltonetworks.com.

Story continues

Palo Alto Networks and the Palo Alto Networks emblem are logos of Palo Alto Networks, Inc. within the united states and jurisdictions throughout the realm. All different emblems, alternate names or service marks used or outlined herein belong to their respective owners.

About Ministry of EducationThe Ministry of schooling is liable for making certain the discovering consequences of over 648,000 college students are achieved and that they purchase the knowledge and abilities imperative to make a contribution to a suit society and a prosperous, sustainable economic climate.

For greater counsel, please discuss with www2.gov.bc.ca/gov/content/governments/organizational-constitution/ministries-businesses/ministries/education.

About IBM CanadaIBM Canada is headquartered in Markham, Ontario and is one of Canada's excellent ten inner most R&D investors; contributing more than $478 million to Canadian analysis and development initiatives in 2017. IBM has a special method to collaboration that provides educational researchers, small and large enterprise, birth-united states of americaand developers with company strategies and computing tools they need to innovate. Areas of focus consist of AI, cloud and protection. Canada is additionally home to IBM's biggest microelectronics packaging and look at various facility in Bromont, Quebec and the largest software construction company in the nation, with sites in Markham, Ottawa, and Fredericton.

For greater suggestions, please consult with www.ibm.com/ca.

Palo Alto Networks logo (PRNewsFoto/Palo Alto Networks, Inc.) (PRNewsfoto/Palo Alto Networks, Inc.)

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No outcome discovered, are attempting new keyword!whereas the Palo Alto Firewalls eight.x lessons do not map without delay to a certification, they may also be a aid to prepare for the following Palo Alto Networks certification assessments: authorized Configuration En...

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Palo Alto Networks Certified Security Engineer (PCNSE) PAN-OS 8.0

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Palo Alto Networks Reports Fiscal Second Quarter 2017 Financial Results | killexams.com real questions and Pass4sure dumps

SANTA CLARA, Calif., Feb. 28, 2017 /PRNewswire/ -- Palo Alto Networks® (NYSE: PANW), the next-generation security company, today announced financial results for its fiscal second quarter 2017 ended January 31, 2017.

Total revenue for the fiscal second quarter 2017 grew 26 percent year over year to $422.6 million, compared with total revenue of $334.7 million for the fiscal second quarter 2016. GAAP net loss for the fiscal second quarter 2017 was $60.6 million, or $0.67 per diluted share, compared with GAAP net loss of $57.3 million, or $0.66 per diluted share, for the fiscal second quarter 2016.

Non-GAAP net income for the fiscal second quarter 2017 was $59.6 million, or $0.63 per diluted share, compared with non-GAAP net income of $39.5 million, or $0.43 per diluted share, for the fiscal second quarter 2016. A reconciliation between GAAP and non-GAAP information is contained in the tables below.

"While fiscal second quarter revenue of $423 million was yet another record for the company, we were disappointed that we came in below top-line expectations due to some execution challenges, which we are moving quickly to address," said Mark McLaughlin, chief executive officer of Palo Alto Networks. "Our customers rely on us to solve their most difficult cybersecurity challenges, and we have yet again widened the technology gap between our Next-Generation Security Platform and the competition with the largest product and features launch in our history, including expansion of our virtual and cloud capabilities. We are also extending our capabilities in data analytics and machine learning with today's announcement of our acquisition of LightCyber."

"Our hybrid-SaaS model drove cash flow from operations to a record $214.3 million and free cash flow to $169.6 million," commented Steffan Tomlinson, chief financial officer of Palo Alto Networks. "We ended the quarter with approximately $2.1 billion in cash, cash equivalents and investments and are pleased to announce an incremental $500 million share repurchase authorization, bringing our total repurchase authorization to $1 billion."

Recent Highlights

  • Announced the biggest product and features launch in the history of Palo Alto Networks– More than 20,000 security professionals from more than 150 countries attended the online and in-person launch events to learn about the biggest highlights of the announcement, which included:
  • Six new hardware appliances designed to enable customers to deploy next-generation security from large data centers to small branches. The PA-5200 Series, PA-800 Series and PA-220 provide faster performance with deep visibility into and control over all traffic, including encrypted traffic, which is becoming an increasingly strategic necessity for effective security.
  • Three new VM-Series models add to the existing four we currently offer. With throughput ranging from 200 Mbps to 16 Gbps, we offer the broadest line of virtualized firewall appliances on the market. Improved integrations with Amazon® Web Services (AWS®), Microsoft® Azure® and VMware® NSX® enable a wider range of deployment scenarios and deliver the scale, redundancy and automation that customers require to build cloud-centric architectures.
  • The industry's first multi-method, scalable and automated approach designed to prevent credential-based theft and abuse by attackers, including a new policy-based multi-factor authentication capability at the network layer.
  • The introduction of both PAN-OS® and Panorama™ 8.0 with more than 70 new features.
  • Announced the acquisition of LightCyber – This acquisition expands our Next-Generation Security Platform with the addition of the award-winning, highly automated behavioral analytics capabilities of LightCyber®, using sophisticated machine learning to quickly, efficiently and accurately identify attacks based on behavioral anomalies inside the network. We will continue to offer the LightCyber products and support existing customer implementations while we engineer the technology into our Next-Generation Security Platform, which we expect to complete by the end of the calendar year. At that time, we plan to offer it as a subscription that further enhances our platform's automated threat prevention capabilities and the ability for customer organizations to prevent cyber breaches throughout the entire attack lifecycle. To learn more about LightCyber and how it enhances the Palo Alto Networks platform, visit www.paloaltonetworks.com.
  • Honored for cloud and advanced endpoint product innovation – CRN®, a brand of The Channel Company, has named Palo Alto Networks to its 100 Coolest Cloud Computing Vendors of 2017 list, recognizing the most innovative cloud technology suppliers. CRN also recognized our Traps™ advanced endpoint protection offering by naming it the overall winner in the 2016 Product of the Year Awards in the Endpoint Security category.
  • Achieved qualification in the Amazon Web Services Competency Program for Security– Our VM-Series achieved this Amazon qualification, reserved for very select partners, that demonstrates technical proficiency and proven customer success in the ability to enable organizations to deploy a comprehensive security architecture and a more seamless experience across their cloud and on-premise environments.
  • Recognized by J.D. Power and TSIA for exceptional support services – This includes certifications under the esteemed J.D. Power Certified Assisted Technical Support Program and TSIA "Rated Outstanding Worldwide" certification* for the second consecutive year, and underscores the exceptional customer support we offer our customers around the globe.
  • * Palo Alto Networks has been recognized by J.D. Power for providing "An Outstanding Customer Service Experience" for its Assisted Technical Support.

    J.D. Power 2016 Certified Assisted Technical Support Program, developed in conjunction with TSIA. Based on successful completion of an audit and exceeding a customer satisfaction benchmark for assisted support operations. For more information, visit www.jdpower.com or www.tsia.com.

    Financial Outlook

    Palo Alto Networks provides guidance based on current market conditions and expectations.

    For the fiscal third quarter 2017, we expect:

  • Total revenue in the range of $406 to $416 million, representing year-over-year growth between 17 percent and 20 percent.
  • Diluted non-GAAP net income per share in the range of $0.54 to $0.56, including a $0.04 investment in LightCyber, using 93 to 95 million shares.
  • Guidance for non-GAAP financial measures excludes share-based compensation related charges including share-based payroll tax expense, acquisition related costs, amortization expense of acquired intangible assets, litigation-related charges including legal settlements, non-cash interest expense related to our convertible senior notes, foreign currency gains (losses) and income and other tax effects associated with these items, and certain non-recurring expenses. We have not reconciled diluted non-GAAP net income per share guidance to GAAP net income (loss) per diluted share because we do not provide guidance on GAAP net income (loss) and would not be able to present the various reconciling cash and non-cash items between GAAP net income (loss) and non-GAAP net income (loss), including share-based compensation expense, without unreasonable effort. Share-based compensation expense is impacted by the company's future hiring and retention needs and, to a lesser extent, the future fair market value of the company's common stock, all of which is difficult to predict and subject to constant change. While the actual amounts of such reconciling items will have a significant impact on the company's GAAP net income (loss) per diluted share, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

    $500 Million Share Repurchase Increase Bringing Total Repurchase Authorization to $1 Billion

    On February 24, 2017, the board of directors authorized a $500 million increase to the existing share repurchase program, bringing the total authorization to $1 billion. As of January 31, 2017, $330 million remained available for repurchase under our initial $500 million authorization. This incremental authorization allows the company to repurchase its shares opportunistically and will be funded from available working capital. Repurchases may be made at management's discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase authorization has been extended and will expire on December 31, 2018, and may be suspended or discontinued at any time. The company had approximately 92.0 million shares of common stock outstanding as of January 31, 2017.

    Conference Call Information

    Palo Alto Networks will host a conference call for analysts and investors to discuss its fiscal second quarter 2017 results and outlook for its fiscal third quarter 2017 today at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Open to the public, investors may access the call by dialing 1-888-430-8690 or 1-719-325-2356 and using conference ID 3525187. A live audio webcast of the conference call, along with supplemental financial information, will also be accessible from the "Investors" section of our website at investors.paloaltonetworks.com. Following the webcast, an archived version will be available on our website for one year. A telephonic replay of the call will be available three hours after the call, will run for ten days, and may be accessed by dialing 1-888-203-1112 or 1-719-457-0820 and entering the passcode 3525187.

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding our future financial and operating performance, including our financial outlook for the fiscal third quarter 2017, our efforts to quickly address execution challenges, our intention to opportunistically repurchase shares of our common stock under our share repurchase program, and our plans, expectations and intentions with respect to the products and technologies that we acquired from LightCyber. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our limited operating history; the possibility that share repurchases may be suspended or discontinued; our ability to identify and effectively implement the necessary changes to address our execution challenges; fluctuations in the trading volume and market price of shares of our common stock; competing future investment opportunities and alternative uses of cash; risks associated with managing our rapid growth; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; our ability as an organization to acquire and integrate other companies, products, or technologies in a successful manner; rapidly evolving technological developments in the market for network security products and subscription and support offerings; length of sales cycles; and general market, political, economic and business conditions.

    Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q filed with the SEC on November 22, 2016, which is available on our website at investors.paloaltonetworks.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Non-GAAP Financial Measures and Other Key Metrics

    Palo Alto Networks has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company uses these non-GAAP financial measures and key metrics internally in analyzing its financial results and believes that the use of these non-GAAP financial measures and key metrics is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing the company's financial results with other companies in its industry, many of which present similar non-GAAP financial measures or key metrics.

    The presentation of these non-GAAP financial measures and key metrics are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company's historical non-GAAP financial measures and key metrics to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

    Non-GAAP net income and net income per share, diluted. Palo Alto Networks defines non-GAAP net income as net income (loss) plus share-based compensation related charges including share-based payroll tax expense, acquisition related costs, amortization expense of acquired intangible assets, litigation related charges including legal settlements, non-cash interest expense related to the company's convertible senior notes, and intellectual property restructuring related charges. The company also excludes from non-GAAP net income the foreign currency gains (losses) and tax effects associated with these items in order to provide a complete picture of the company's recurring core business operating results. The company defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted average diluted shares outstanding, which includes the potentially dilutive effect of the company's employee equity incentive plan awards and the company's convertible senior notes outstanding, after giving effect to the anti-dilutive impact of the company's note hedge agreements, which reduces the potential economic dilution that otherwise would occur upon conversion of the company's convertible senior notes. Under GAAP, the anti-dilutive impact of the note hedge is not reflected in diluted shares outstanding. The company believes that excluding these items from non-GAAP net income and non-GAAP net income per share, diluted, provides management and investors with greater visibility into the underlying performance of the company's core business operating results, meaning its operating performance excluding these items and, from time to time, other discrete charges that are infrequent in nature, over multiple periods.

    Billings. Palo Alto Networks defines billings as total revenue plus the change in total deferred revenue during the period. The company considers billings to be a key metric used by management to manage the company's business given the company's hybrid-SaaS revenue model, and believes billings provides investors with an important indicator of the health and visibility of the company's business because it includes subscription and support revenue, which is recognized ratably over the contractual service period, and product revenue, which is recognized at the time of shipment, provided that all other revenue recognition criteria have been met. The company considers billings to be a useful metric for management and investors, particularly if sales of subscriptions continue to increase and the company experiences strong renewal rates for subscription and support.

    Free cash flow. Palo Alto Networks defines free cash flow as cash provided by operating activities less purchases of property, equipment, and other assets. The company considers free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures.

    Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. In particular, the billings metric reported by the company includes amounts that have not yet been recognized as revenue and free cash flow does not represent the total increase or decrease in our cash balance for the period. In addition, many of the adjustments to the company's GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in the company's financial results for the foreseeable future, such as share-based compensation, which is an important part of Palo Alto Networks employees' compensation and impacts their performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Palo Alto Networks excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Palo Alto Networks compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the company may also exclude non-recurring expenses and other expenses that do not reflect the company's core business operating results.

    About Palo Alto Networks

    Palo Alto Networks is the next-generation security company, leading a new era in cybersecurity by safely enabling applications and preventing cyber breaches for tens of thousands of organizations worldwide. Built with an innovative approach and highly differentiated cyberthreat prevention capabilities, our game-changing security platform delivers security far superior to legacy or point products, safely enables daily business operations, and protects an organization's most valuable assets. Find out more at www.paloaltonetworks.com.

    Palo Alto Networks and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

     

    Palo Alto Networks, Inc.

    Preliminary Condensed Consolidated Statements of Operations

    (In millions, except per share data)

    (Unaudited)

    Three Months Ended January 31,

    Six Months Ended January 31,

    2017(2)

    2016

    2017(2)

    2016

    (As Adjusted)(1)

    (As Adjusted)(1)

    Revenue:

    Product

    $

    168.8

    $

    169.9

    $

    332.6

    $

    317.6

    Subscription and support

    253.8

    164.8

    488.1

    314.3

    Total revenue

    422.6

    334.7

    820.7

    631.9

    Cost of revenue:

    Product

    45.8

    44.9

    88.0

    83.7

    Subscription and support

    67.4

    49.3

    126.4

    89.7

    Total cost of revenue

    113.2

    94.2

    214.4

    173.4

    Total gross profit

    309.4

    240.5

    606.3

    458.5

    Operating expenses:

    Research and development

    89.9

    74.0

    174.1

    133.7

    Sales and marketing

    226.7

    182.4

    446.8

    341.9

    General and administrative

    47.2

    34.2

    88.8

    65.0

    Total operating expenses

    363.8

    290.6

    709.7

    540.6

    Operating loss

    (54.4)

    (50.1)

    (103.4)

    (82.1)

    Interest expense

    (6.1)

    (5.8)

    (12.1)

    (11.6)

    Other income, net

    2.7

    2.5

    5.2

    4.7

    Loss before income taxes

    (57.8)

    (53.4)

    (110.3)

    (89.0)

    Provision for income taxes

    2.8

    3.9

    7.2

    8.2

    Net loss

    $

    (60.6)

    $

    (57.3)

    $

    (117.5)

    $

    (97.2)

    Net loss per share, basic and diluted

    $

    (0.67)

    $

    (0.66)

    $

    (1.30)

    $

    (1.13)

    Weighted-average shares used to compute net loss per share, basic and diluted

    90.7

    86.6

    90.2

    85.8

    (1)

    Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information.

    (2)

    The Company early adopted new share-based payment accounting guidance in its second quarter of fiscal 2017, which simplified, among other things, the accounting for income tax consequences and the method of accounting for forfeitures of share-based payment awards. As a result of the early adoption, the Company's share-based compensation and provision for income taxes decreased by $0.9 million and $4.0 million, respectively, for the three months ended October 31, 2016. These adjustments are reflected in the results for the six months ended January 31, 2017.

     

    Palo Alto Networks, Inc.

    Reconciliation of GAAP to Non-GAAP Financial Measures

    (In millions, except per share amounts)

    (Unaudited)

    Three Months Ended

    Six Months Ended

    January 31,

    January 31,

    2017

    2016

    2017

    2016

    (As Adjusted)(1)

    (As Adjusted)(1)

    GAAP net loss

    $

    (60.6)

    $

    (57.3)

    $

    (117.5)

    $

    (97.2)

    Share-based compensation related charges

    131.8

    106.9

    247.4

    182.1

    Acquisition related costs

    0.7

    0.7

    Amortization expense of acquired intangible assets

    2.0

    2.1

    4.1

    4.2

    Litigation related charges

    3.0

    3.0

    6.1

    6.1

    Non-cash interest expense related to convertible notes

    6.1

    5.7

    12.1

    11.5

    Foreign currency (gain) loss associated with non-GAAP adjustments

    0.6

    (0.7)

    0.4

    (1.5)

    Income tax and other tax adjustments related to the above

    (24.0)

    (20.2)

    (42.5)

    (34.9)

    Non-GAAP net income

    $

    59.6

    $

    39.5

    $

    110.8

    $

    70.3

    GAAP net loss per share, diluted

    $

    (0.67)

    $

    (0.66)

    $

    (1.30)

    $

    (1.13)

    Share-based compensation related charges

    1.42

    1.21

    2.69

    2.08

    Acquisition related costs

    0.01

    0.00

    0.01

    0.00

    Amortization expense of acquired intangible assets

    0.02

    0.02

    0.05

    0.05

    Litigation related charges

    0.03

    0.04

    0.07

    0.07

    Non-cash interest expense related to convertible notes

    0.07

    0.07

    0.13

    0.13

    Foreign currency (gain) loss associated with non-GAAP adjustments

    0.01

    (0.01)

    0.00

    (0.02)

    Income tax and other tax adjustments related to the above

    (0.26)

    (0.24)

    (0.47)

    (0.41)

    Non-GAAP net income per share, diluted

    $

    0.63

    $

    0.43

    $

    1.18

    $

    0.77

    GAAP weighted-average shares used to compute net loss per share, diluted

    90.7

    86.6

    90.2

    85.8

    Weighted-average effect of potentially dilutive securities(2)

    3.2

    5.1

    3.6

    5.4

    Non-GAAP weighted-average shares used to compute net income per share, diluted

    93.9

    91.7

    93.8

    91.2

    Net cash provided by operating activities

    $

    214.3

    $

    154.1

    $

    417.8

    $

    301.0

    Less: purchases of property, equipment, and other assets

    44.7

    17.4

    65.6

    36.9

    Free cash flow (non-GAAP)

    $

    169.6

    $

    136.7

    $

    352.2

    $

    264.1

    Net cash used in investing activities

    $

    (173.1)

    $

    (21.2)

    $

    (244.3)

    $

    (284.7)

    Net cash provided by (used in) financing activities

    $

    (119.2)

    $

    4.5

    $

    (146.5)

    $

    21.1

    (1)

    Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information.

    (2)

    Non-GAAP net income per share, diluted, includes the potentially dilutive effect of employee equity incentive plan awards and convertible senior notes outstanding. In addition, non-GAAP net income per share, diluted, includes the anti-dilutive impact of the Company's note hedge agreements, which reduced the potentially dilutive effect of the convertible notes by 0.9 million shares and 1.2 million shares for the three and six months ended January 31, 2017, respectively, and 1.7 million shares and 1.8 million shares for the three and six months ended January 31, 2016, respectively.

     

    Palo Alto Networks, Inc.

    Calculation of Billings

    (In millions)

    (Unaudited)

    Three Months Ended January 31,

    Six Months Ended January 31,

    2017

    2016

    2017

    2016

    Total revenue

    $

    422.6

    $

    334.7

    $

    820.7

    $

    631.9

    Add: change in total deferred revenue

    139.0

    124.3

    257.8

    215.1

    Billings

    $

    561.6

    $

    459.0

    $

    1,078.5

    $

    847.0

     

    Palo Alto Networks, Inc.

    Preliminary Condensed Consolidated Balance Sheets

    (In millions)

    (Unaudited)

    January 31, 2017

    July 31, 2016

    (As Adjusted)(1)

    Assets

    Current assets:

    Cash and cash equivalents

    $

    761.4

    $

    734.4

    Short-term investments

    593.0

    551.2

    Accounts receivable, net

    386.1

    348.7

    Prepaid expenses and other current assets

    139.9

    139.7

    Total current assets

    1,880.4

    1,774.0

    Property and equipment, net

    154.1

    117.2

    Long-term investments

    790.5

    652.8

    Goodwill

    163.5

    163.5

    Intangible assets, net

    39.5

    44.0

    Other assets

    146.6

    106.7

    Total assets

    $

    3,174.6

    $

    2,858.2

    Liabilities and stockholders' equity

    Current liabilities:

    Accounts payable

    $

    28.0

    $

    30.2

    Accrued compensation

    78.8

    73.5

    Accrued and other liabilities

    58.8

    39.2

    Deferred revenue

    828.0

    703.9

    Total current liabilities

    993.6

    846.8

    Convertible senior notes, net

    512.3

    500.2

    Long-term deferred revenue

    670.6

    536.9

    Other long-term liabilities

    127.5

    79.4

    Stockholders' equity:

    Preferred stock

    Common stock and additional paid-in capital

    1,613.3

    1,515.5

    Accumulated other comprehensive income (loss)

    (5.1)

    1.0

    Accumulated deficit

    (737.6)

    (621.6)

    Total stockholders' equity

    870.6

    894.9

    Total liabilities and stockholders' equity

    $

    3,174.6

    $

    2,858.2

    (1)

    Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information.

     

    Palo Alto Networks, Inc.

    Preliminary Condensed Consolidated Statements of Cash Flows

    (In millions)

    (Unaudited)

    Six Months Ended January 31,

    2017

    2016

    (As Adjusted)(1)

    Cash flows from operating activities

    Net loss

    $

    (117.5)

    $

    (97.2)

    Adjustments to reconcile net loss to net cash provided by operating activities:

    Share-based compensation for equity based awards

    240.6

    174.8

    Depreciation and amortization

    28.0

    19.5

    Amortization of investment premiums, net of accretion of purchase discounts

    1.4

    1.6

    Amortization of debt discount and debt issuance costs

    12.1

    11.5

    Changes in operating assets and liabilities:

    Accounts receivable, net

    (37.3)

    (42.0)

    Prepaid expenses and other assets

    (41.6)

    (12.9)

    Accounts payable

    0.2

    13.6

    Accrued compensation

    5.3

    (8.6)

    Accrued and other liabilities

    68.8

    25.6

    Deferred revenue

    257.8

    215.1

    Net cash provided by operating activities(2)

    417.8

    301.0

    Cash flows from investing activities

    Purchases of investments

    (562.7)

    (610.2)

    Proceeds from sales of investments

    134.4

    Proceeds from maturities of investments

    384.0

    228.0

    Purchases of property, equipment, and other assets

    (65.6)

    (36.9)

    Net cash used in investing activities

    (244.3)

    (284.7)

    Cash flows from financing activities

    Repurchases of common stock

    (170.1)

    Proceeds from sales of shares through employee equity incentive plans

    23.6

    21.1

    Net cash provided by (used in) financing activities(2)

    (146.5)

    21.1

    Net increase in cash and cash equivalents

    27.0

    37.4

    Cash and cash equivalents - beginning of period

    734.4

    375.8

    Cash and cash equivalents - end of period

    $

    761.4

    $

    413.2

    (1)

    Certain amounts have been adjusted as a result of the Company's change in accounting policy for sales commissions. Refer to Appendix A for more information.

    (2)

    The Company early adopted new share-based payment accounting guidance in its second quarter of fiscal 2017, which simplified, among other things, the presentation of excess tax benefits in the statement of cash flows. The Company adopted this portion of the guidance on a retrospective basis, which increased net cash provided by operating activities by $0.5 million for the six months ended January 31, 2016, with a corresponding decrease to net cash provided by financing activities.

     

    Palo Alto Networks, Inc.Appendix AChange in Accounting Policy(Unaudited)

    Effective August 1, 2016, the Company voluntarily changed its accounting policy for sales commissions that are incremental and directly related to non-cancelable customer sales contracts from recording an expense when incurred to deferral and amortization of the sales commissions over the term of the related contract in proportion to the recognized revenue. The adoption of this accounting policy change has been applied retrospectively to all prior periods presented in this document, in which the cumulative effect of the change has been reflected as of the beginning of the earliest period presented.

    The following tables present the changes to financial statement line items as a result of the accounting change for the periods presented in the Company's preliminary condensed consolidated financial statements (in millions, except per share data):

    January 31, 2017

    July 31, 2016

    Computedunder PriorMethod

    Impact ofCommissionAdjustment

    As Reported

    AsPreviouslyReported

    Impact ofCommissionAdjustment

    As Adjusted

    Preliminary Condensed Consolidated Balance Sheets

    Prepaid expenses and other current assets

    $

    83.2

    $

    56.7

    $

    139.9

    $

    84.8

    $

    54.9

    $

    139.7

    Other assets

    94.8

    51.8

    146.6

    64.6

    50.1

    114.7

    Accumulated deficit

    $

    (846.1)

    $

    108.5

    $

    (737.6)

    $

    (726.6)

    $

    105.0

    $

    (621.6)

    Three Months Ended January 31, 2017

    Three Months Ended January 31, 2016

    Computedunder PriorMethod

    Impact ofCommissionAdjustment

    As Reported

    AsPreviouslyReported

    Impact ofCommissionAdjustment

    As Adjusted

    Preliminary Condensed Consolidated Statements of Operations

    Sales and marketing

    $

    232.7

    $

    (6.0)

    $

    226.7

    $

    187.6

    $

    (5.2)

    $

    182.4

    Operating loss

    (60.4)

    6.0

    (54.4)

    (55.3)

    5.2

    (50.1)

    Provision for income taxes

    2.8

    2.8

    3.9

    3.9

    Net loss

    $

    (66.6)

    $

    6.0

    $

    (60.6)

    $

    (62.5)

    $

    5.2

    $

    (57.3)

    Net loss per share, basic and diluted

    $

    (0.73)

    $

    0.06

    $

    (0.67)

    $

    (0.72)

    $

    0.06

    $

    (0.66)

    Weighted-average shares used to compute net loss per share, basic and diluted

    90.7

    90.7

    86.6

    86.6

    Six Months Ended January 31, 2017

    Six Months Ended January 31, 2016

    Computedunder PriorMethod

    Impact ofCommissionAdjustment

    As Reported

    AsPreviouslyReported

    Impact ofCommissionAdjustment

    As Adjusted

    Preliminary Condensed Consolidated Statements of Operations

    Sales and marketing

    $

    450.2

    $

    (3.4)

    $

    446.8

    $

    345.9

    $

    (4.0)

    $

    341.9

    Operating loss

    (106.8)

    3.4

    (103.4)

    (86.1)

    4.0

    (82.1)

    Provision for income taxes

    7.3

    (0.1)

    7.2

    8.2

    8.2

    Net loss

    $

    (121.0)

    $

    3.5

    $

    (117.5)

    $

    (101.2)

    $

    4.0

    $

    (97.2)

    Net loss per share, basic and diluted

    $

    (1.34)

    $

    0.04

    $

    (1.30)

    $

    (1.18)

    $

    0.05

    $

    (1.13)

    Weighted-average shares used to compute net loss per share, basic and diluted

    90.2

    90.2

    85.8

    85.8

     

    This change in accounting policy does not affect the Company's balance of cash and cash equivalents and, as a result, did not change net cash flows from operating, investing, or financing activities or materially impact any individual line items in the Company's preliminary condensed consolidated statement of cash flows for the six months ended January 31, 2016.

     

    To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/palo-alto-networks-reports-fiscal-second-quarter-2017-financial-results-300415233.html

    SOURCE Palo Alto Networks, Inc.



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