Article submitted by: Administrator | Publish date: 30. May, 2014
Related topics: PaloAlto
 

Palo Alto Networks reports record financial results

Palo Alto Networks reports record financial results in fiscal third quarter 2014 and announces settlement of litigation with Juniper


 

We did all this while continuing to grow our profit quarter over quarter, demonstrating not only the superiority of our technology, but also the endurance of our model at a time when competitors are struggling to grow revenue or figure out how to ever turn a profit. Thank you for helping us deliver a great quarter and, more importantly, thank you for your continued commitment to Palo Alto Networks and your hard work. It is truly an honor to have you on the team.

You also will see that along with the earnings, we announced the settlement of all existing litigation with Juniper. You may recall that 2½ years ago Juniper filed a lawsuit against us claiming that we infringed on their intellectual property. We do not infringe and vigorously defended ourselves against these claims, including filing our own counter suits in the process. These years of effort culminated a short while ago in a trial where the jury hung on a verdict, resulting in a mistrial. That was disappointing because it meant that the whole process could start over again.

 

Given that both parties spent countless hours and tens of millions of dollars in legal fees, this was not a desirable outcome. Instead, we negotiated a settlement that:

  • Extinguishes all litigation between Palo Alto Networks and Juniper Networks;
  • Provides licenses to each other for the patents in the various lawsuits for the life of the patents;
  • Provides that the companies will not sue each other for patent infringement for the next 8 years; and
  • Provides that Palo Alto Networks pays a one-time settlement to Juniper Networks
We do not infringe on Juniper's patents and we remain confident in our legal position, but, in the end, the board and I believe that putting this distraction and expense behind us is in the best long-term interest of our shareholders, employees, partners, and customers. Resolving these issues allows us to continue to focus on what we do best – innovation, serving our customers by solving their toughest cybersecurity problems, and continuing to gain market share.

Thank you again for your commitment to and partnership with Palo Alto Networks.

Sincerely,
Rene Bonvanie

Chief Marketing Officer

Palo Alto Networks



  

 

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