Palo Alto Networks (PANW) Q4 loss narrows, revenue jumps; stock drops a/h

Palo Alto Networks Inc.'s (PANW) fiscal fourth-quarter loss narrowed as the network security firm's revenue strengthened.

The company, which went public in July, makes hardware and software that provides computer-network security. Its products are used to replace older systems operated by companies or government agencies, and the company said it reduces expenses for its customers by simplifying network-security systems.

For the quarter ended July 31, Palo Alto reported a loss of $4.6 million, or 18 cents a share, compared with a year-earlier loss of $6 million, or 40 cents a share. Excluding stock-based compensation, earnings were three cents a share compared with a year-earlier loss of 34 cents a share. Revenue climbed 88% to $75.6 million.

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Analysts polled by Thomson Reuters projected earnings to break even on a per-share basis, and revenue of $71 million.

Gross margin eased to 71.5% from 71.8%. Operating expenses were up 70%.

Product revenue, which makes up the bulk of its top line, jumped 70% while services revenue more than doubled.

The company added more than 1,000 new end customers in quarter, bringing its customer base to more than 9,000.

Shares slipped 7.1% after hours. Through the close, the stock has jumped 71% since its IPO price of $42.

Five Below Q2 profit falls 44% on debt expenses; drops 7% after hours

Five Below Inc.'s (FIVE) fiscal second-quarter profit fell 44% as the teen discount retailer logged heavy debt-related expenses, masking an increase in sales.

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Shares fell 7.6% in after-hours trading to $32.16. Through the close, the stock had more than doubled from its July initial offering price of $17.

Targeting teen and pre-teen shoppers, Five Below offers everything from headphones to nail polish, priced at $5 or less. The company's quickly revolving merchandise is intended to draw in repeat customers, helping it book 25 straight quarters of same-store sales growth.

The latest quarter included a loss of $1.59 million on the extinguishment of debt. Interest expense reached $1.32 million, up from $5000 a year ago. The interest expenses were related to a term loan of $100 million taken in the second quarter, of which $65.3 million was repaid after the company's public launch.

For the quarter ended July 28, the company posted a profit of $1.25 million, down from $2.21 million a year earlier. On a per-share basis, which includes the effects of dividend payments, the company reported a loss of $3.41, compared with a year-ago loss of 10 cents. Excluding dividend payments and expenses related to founders' stock compensation, per-share earnings were flat at four cents.

Sales increased 40% to $86.8 million.

Analysts polled by Thomson Reuters expected a per-share profit of a penny on sales of $82 million.

Gross margin widened to 33.1% from 32.3%.

Same-store sales grew 8.6%.

Five Below opened 27 stores in the second quarter, ending with 226 stores.

For the current quarter, the company expects to report per-share income of breakeven to a penny, excluding tax-related expenses, on revenue of $79 million to $81 million. Analysts polled by Thomson Reuters recently expected per-share earnings of breakeven on revenue of $80 million.

For the year, Five Below expects adjusted per-share earnings of 45 cents to 47 cents, with sales of $402 million to $407 million. The Street expected per-share earnings of 44 cents on revenue of $399 million.

FB says Zuckerberg, directors won't sell shares

Facebook (FB) Chief Executive Mark Zuckerberg and two company directors, Marc Andreessen and Donald Graham, do not plan to sell any company shares following the expiration of a lockup period, the social networking giant said in a regulatory filing late Tuesday. 

Zuckerberg, who is also the company's co-founder, "has no intention to conduct any sale transaction in our securities for at least 12 months," Facebook said. Shares of Facebook rose nearly 2% in after-hours trading, after hitting a new low in regular trading. Facebook shares have been weighed down by the coming lockup expirations for more than 1.3 billion shares before the end of the year. A big wave of roughly 1.22 billion is expected to hit Nov. 14.