(Reuters) -Cybersecurity firm Fortinet forecast fourth-quarter revenue below Wall Street estimates on Thursday, as it grapples with weak corporate spending in an uncertain economy, sending its shares down more than 16% in extended trading.
The Sunnyvale, California-based company expects revenue of $1.38 billion to $1.44 billion for the quarter ending Dec.
31, compared with analysts’ estimates of $1.50 billion, according to LSEG data.
Fortinet also cut its full-year revenue outlook in the range of $5.27 billion to $5.33 billion, compared with its prior expectations of $5.35 billion to $5.45 billion.
Large customers are opting for short-term deals to ensure safety of their IT systems against online threats as they keep a tight leash on their spending in an uncertain economy, hurting cybersecurity companies, analysts have said.
Fortinet is also facing intense competition from companies including Palo Alto Networks and CrowdStrike Holdings for a slice of the cybersecurity market.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D’Silva)
