BANGALORE, INDIA: Network security provider Fortinet on Monday reported a total revenue of $70.7 million for the fourth quarter ended December 31, 2009, representing an increase of 20 per cent compared to the fourth quarter of 2008.

Within the total revenue, product revenue was $29.4 million, an increase of 12 per cent compared to the fourth quarter of 2008. Services revenue was $37.4 million, up 25 per cent compared to the fourth quarter of 2008. Ratable product and services revenue was $3.9 million, this too up of 32 per cent, said a press release.

Net income for the quarter stood at $43.9 million (which includes a $37.8 million tax benefit from the reversal of our valuation allowance), compared to $7.9 million for the fourth quarter of 2008.

EPS was $0.62 on 70.8 million weighted-average diluted shares outstanding, as against $0.12 on 66.9 million for the corresponding quarter of the previous year.

The company reported a deferred revenue of $201.9 million as of December 31, 2009, an increase of 18 per cent on a YoY basis.

For the quarter under review, cash and cash equivalents and short-term investments were $260.3 million, an increase from $152.4 million as of September 30, 2009. Cash flow from operations was $16.6 million. Net proceeds of $87.4 million from the company’s initial public offering contributed to the strong increase in cash and cash equivalents and short-term investments during the fourth quarter, the release said.

Operating income was $7.5 million for the fourth quarter of 2009, representing an operating margin of 11 per cent and an increase of 19 per cent compared to the fourth quarter of 2008.

Ken Xie, founder, president and chief executive officer of Fortinet, said, “The fourth quarter of 2009 was a milestone for Fortinet as we successfully completed our IPO and had a strong finish to the year. Our focus on innovation and providing an end-to-end IT security portfolio utilizing our custom ASICs continues to drive Fortinet’s market share gains and new customer acquisitions.”