Security Company Palo Alto Networks Files For $175 Million IPO

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Palo Alto Networks, a security software company, has filed its S-1 for a public offering, aiming to raise as much as $175 million. The company was rumored to be in the process of filing earlier this year.

Founded by Nir Zuk, the company develops enterprise-grade firewalls for companies that give visibility and granular policy control of applications and content, through hardware and software technologies. Companies can gain visibility into all traffic and all applications, maintaining the security of internal data and applications. For example, the company’s firewall will scan for viruses, spyware, data leakage and other application vulnerabilities in realtime.

For the fiscal years 2009, 2010, and 2011, Palo Alto Networks saw revenues of $13.4 million, $48.8 million, and $118.6 million, respectively. Sales grew 265% in 2010 and 143% in 2011. For 2009, 2010, and 2011, the company saw losses of $19 million, $21.1 million, and $12.5 million, respectively. For the six month period ended January 31, 2012, Palo Alto saw net income of $4.5 million.

The company has 6,650 customers, including Qualcomm, and Cricket, in more than 80 countries. Palo Alto Networks says that 62% of its total revenue is from North America, 27% comes from Europe, the Middle East, and Africa (EMEA), and 11% originates from Asia Pacific and Japan.

Palo Alto Networks has raised $65 million from Greylock, Sequoia, Globespan Capital Partners, JAFCO, Lehman Brothers, JAIC and Northgate Capital.

Morgan Stanley, Goldman Sachs and Citigroup are the lead underwriters. Credit Suisse, Barclays, UBS and Raymond James are also serving as underwriters.