Palo Alto Networks announced two things on Feb. 28, the acquisition of privately-held security vendor LightCyber and its' second quarter fiscal 2017 financial results.
On the acquisition front, Palo Alto is paying $105 million in cash to acquire LightCyber, which has raised $32 million in funding since the company was founded in 2011. LightCyber's core platform is called Magma and is a breach detection technology.
Among the core capabilities in LightCyber's Magma platform is network-to-process (N2PA) technology that connects network traffic to endpoint processes in order to help detect and remediate breaches. As part of Palo Alto, the plan in the immediate near term is to continue to offer LightCyber's product and support existing customers. The bigger piece is integration of LightCyber's technology into the broader Palo Alto product portfolio, to help enable more robust behavioral analytics
"The LightCyber team's vision to bring automation and machine learning to bear in addressing the very difficult task of identifying otherwise undetected and often very sophisticated attacks inside the network is well-aligned with our platform approach," Mark McLaughlin, chairman and CEO of Palo Alto Networks, said in a statement. "This technology will complement the existing automated threat prevention capabilities of our platform to help organizations not only improve but also scale their security protections to prevent cyber breaches."
Palo Alto Networks also announced its second quarter fiscal 2017 revenue today. Revenue for the quarter was reported at $422.6 million for a 26 percent year-over-year increase. While revenue has grown, so too has the Net Loss for the company. For the quarter, Palo Alto reported a Net Loss of $60.6 million up from a loss of $57.3 million reported for the second quarter of fiscal 2016.
Looking forward, Palo Alto Networks is optimistic about the third quarter, providing guidance for revenue to be in the range of $406M to $416M.
"Our customers rely on us to solve their most difficult cybersecurity challenges, and we have yet again widened the technology gap between our Next-Generation Security Platform and the competition with the largest product and features launch in our history, including expansion of our virtual and cloud capabilities," McLaughlin said. "We are also extending our capabilities in data analytics and machine learning with today's announcement of our acquisition of LightCyber."
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.