Fortinet announced unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2014. Total revenue was $224.0 million for the fourth quarter of 2014, an increase of 26% compared to $177.4 million in the same quarter of 2013. In the fourth quarter of 2014, cash flow from operations was $35.4 million compared to $46.668 million a year ago. Free cash flow was $30.0 million. GAAP operating income was $19.9 million for the fourth quarter of 2014, representing a GAAP operating margin of 9%. GAAP operating income was $24.6 million for the same quarter of 2013, representing a GAAP operating margin of 14%. GAAP net income was $6.8 million for the fourth quarter of 2014, compared to GAAP net income of $12.0 million for the same quarter of 2013. GAAP diluted net income per share was $0.04 for the fourth quarter of 2014, compared to $0.07 for the same quarter of 2013. Non-GAAP operating income was $36.8 million for the fourth quarter of 2014, representing a non-GAAP operating margin of 16%. Non-GAAP operating income was $38.3 million for the same quarter of 2013, representing a non-GAAP operating margin of 22%. Non-GAAP net income was $24.1 million for the fourth quarter of 2014, compared to non-GAAP net income of $26.3 million for the same quarter of 2013. Non-GAAP diluted net income per share was $0.14 for the fourth quarter of 2014, compared to $0.16 for the same quarter of 2013. Income before income taxes was $20.118 million compared to $25.542 million a year ago. Purchase of property and equipment was $5.395 million compared to $7.148 million a year ago.

For the year, total revenue was $770.4 million for fiscal 2014, an increase of 25% compared to $615.3 million in fiscal 2013. In fiscal 2014, cash flow from operations was $196.6 million compared to $147.384 million a year ago. Free cash flow was $164.4 million. GAAP operating income was $59.3 million for fiscal 2014, representing a GAAP operating margin of 8%. GAAP operating income was $72.1 million for fiscal 2013, representing a GAAP operating margin of 12%. GAAP net income was $25.3 million for fiscal 2014, compared to GAAP net income of $44.3 million for fiscal 2013. GAAP diluted net income per share was $0.15 for fiscal 2014, compared to $0.26 for fiscal 2013. Non-GAAP operating income was $122.1 million for fiscal 2014, representing a non-GAAP operating margin of 16%. Non-GAAP operating income was $118.6 million for fiscal 2013, representing a non-GAAP operating margin of 19%. Non-GAAP net income was $80.8 million for fiscal 2014, compared to non-GAAP net income of $82.0 million for fiscal 2013. Non-GAAP diluted net income per share was $0.48 for fiscal 2014, compared to $0.49 for fiscal 2013. Income before income taxes was $61.549 million compared to $75.941 million a year ago. Purchase of property and equipment was $32.197 million compared to $13.877 million a year ago.

Now turning to the first quarter of 2015, the company expected billings to be in the range of $226 million to $230 million, up approximately 22% year-over-year at the midpoint. Total revenue is expected to be in the range of $200 million to $205 million, up 20% year-over-year at the midpoint. Non-GAAP gross margin is expected to be approximately 70% to 71%. Non-GAAP operating margin is expected to be approximately 7%. And finally, the company expected non-GAAP earnings per share to be approximately $0.06 per share based on an expected diluted share count in the range of 171 million to 173 million fully diluted shares.

Regarding 2015, while it is still early in the year, the company currently expected billings to be in the range of $1,065,000,000 to $1,080,000,000, up 20% year-over-year at the midpoint. The company expected total revenue to be in the range of $915 million to $925 million, also up 20% year-over-year at the midpoint. Non-GAAP gross margin is expected to be in the range of 70% to 71%. Non-GAAP operating margin is expected to be approximately 14%, reflecting continued growth investments as well as absorption of costs of new hires in 2014. The majority of this investment will be focused on further building enterprise vertical sales and marketing capabilities. And finally, the company expected non-GAAP earnings per share to be in the range of approximately $0.49 per share to $0.50 per share based on an expected diluted share count in the range of 173 million to 175 million fully diluted shares. For fiscal 2015 for CapEx, the company would expect $40 million to $45 million.