- Total revenue of $963.6 million, up 29% year over year
- Product revenue of $378.9 million, up 31% year over year
- Service revenue of $584.7 million, up 27% year over year
- Billings of $1.31 billion, up 36% year over year1
- Bookings of $1.43 billion, up 49% year over year2
- GAAP operating margin of 22.3%
- Non-GAAP operating margin of 28.5%1
- Cash paid for share repurchases of $571.8 million
Full Year 2021 Highlights
- Total revenue of $3.34 billion, up 29% year over year
- Product revenue of $1.26 billion, up 37% year over year
- Service revenue of $2.09 billion, up 24% year over year
- Billings of $4.18 billion, up 35% year over year1
- Bookings of $4.33 billion, up 40% year over year2
- Deferred revenue of $3.45 billion, up 33% year over year
- GAAP operating margin of 19.5%
- Non-GAAP operating margin of 26.2%1
- Cash flow from operations of $1.50 billion
- Cash paid for share repurchases of $741.8 million
- Free cash flow of $1.20 billion1
SUNNYVALE, Calif., Feb. 03, 2022 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the fourth quarter and full year ended December 31, 2021.
“Revenue growth accelerated to 29% in 2021, after three consecutive years with revenue growth of 20% or more. Cash flow from operations was $1.5 billion and free cash flow was a record $1.2 billion for the year,” said Ken Xie, Founder, Chairman and Chief Executive Officer. “Our 2021 performance was driven by increased demand for our cybersecurity solutions and exceptional execution from our global operations and sales teams and excellent support from our channel partners and distributors. Fortinet’s integrated and single platform approach to security is resonating with customers that want to effectively protect their corporate networks from a wide range of attack vectors. Given our robust pipeline and strong business momentum, we expect several more years of solid growth as Fortinet is well positioned to address our $174 billion market opportunity.”
Financial Highlights for the Fourth Quarter of 2021
- Revenue: Total revenue was $963.6 million for the fourth quarter of 2021, an increase of 28.8% compared to $748.0 million for the same quarter of 2020.
- Product Revenue: Product revenue was $378.9 million for the fourth quarter of 2021, an increase of 31.4% compared to $288.4 million for the same quarter of 2020.
- Service Revenue: Service revenue was $584.7 million for the fourth quarter of 2021, an increase of 27.2% compared to $459.6 million for the same quarter of 2020.
- Billings1: Total billings were $1.31 billion for the fourth quarter of 2021, an increase of 35.9% compared to $960.9 million for the same quarter of 2020.
- Bookings2: Total bookings were $1.43 billion for the fourth quarter of 2021, an increase of 48.7% compared to $960.3 million for the same quarter of 2020. Backlog2 was $161.9 million as of December 31, 2021 an increase of $149.7 million compared to $12.2 million as of December 31, 2020.
- GAAP Operating Income and Margin: GAAP operating income was $214.9 million for the fourth quarter of 2021, representing a GAAP operating margin of 22.3%. GAAP operating income was $169.4 million for the same quarter of 2020, representing a GAAP operating margin of 22.6%.
- Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $274.7 million for the fourth quarter of 2021, representing a non-GAAP operating margin of 28.5%. Non-GAAP operating income was $219.9 million for the same quarter of 2020, representing a non-GAAP operating margin of 29.4%.
- GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.: GAAP net income was $199.0 million for the fourth quarter of 2021, compared to GAAP net income of $146.7 million for the same quarter of 2020. GAAP diluted net income per share was $1.19 for the fourth quarter of 2021, based on 167.0 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.89 for the same quarter of 2020, based on 165.5 million diluted weighted-average shares outstanding.
- Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.1: Non-GAAP net income was $205.8 million for the fourth quarter of 2021, compared to non-GAAP net income of $175.5 million for the same quarter of 2020. Non-GAAP diluted net income per share was $1.23 for the fourth quarter of 2021, based on 167.0 million diluted weighted-average shares outstanding, compared to $1.06 for the same quarter of 2020, based on 165.5 million diluted weighted-average shares outstanding.
- Cash Flow: Cash flow from operations was $366.8 million for the fourth quarter of 2021, compared to $296.5 million for the same quarter of 2020.
- Free Cash Flow1: Free cash flow was $215.5 million for the fourth quarter of 2021, compared to $264.2 million for the same quarter of 2020.
Financial Highlights for the Full Year 2021
- Revenue: Total revenue was $3.34 billion for 2021, an increase of 28.8% compared to $2.59 billion in 2020.
- Product Revenue: Product revenue was $1.26 billion for 2021, an increase of 36.9% compared to $916.4 million in 2020.
- Service Revenue: Service revenue was $2.09 billion for 2021, an increase of 24.4% compared to $1.68 billion in 2020.
- Billings1: Total billings were $4.18 billion for 2021, an increase of 35.3% compared to $3.09 billion in 2020.
- Bookings2: Total bookings were $4.33 billion for 2021, an increase of 40.2% compared to $3.09 billion in 2020.
- Deferred Revenue: Total deferred revenue was $3.45 billion as of December 31, 2021, an increase of 32.5% compared to $2.61 billion as of December 31, 2020.
- GAAP Operating Income and Margin: GAAP operating income was $650.4 million for 2021, representing a GAAP operating margin of 19.5%. GAAP operating income was $531.8 million for 2020, representing a GAAP operating margin of 20.5%.
- Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $875.5 million for 2021, representing a non-GAAP operating margin of 26.2%. Non-GAAP operating income was $698.0 million for 2020, representing a non-GAAP operating margin of 26.9%.
- GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.: GAAP net income was $606.8 million for 2021, compared to GAAP net income of $488.5 million for 2020. GAAP diluted net income per share was $3.63 for 2021, based on 167.1 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $2.91 for 2020, based on 167.7 million diluted weighted-average shares outstanding.
- Non-GAAP Net Income and Diluted Net Income Per Share Attributable to Fortinet, Inc.1: Non-GAAP net income was $666.0 million for 2021, compared to non-GAAP net income of $562.6 million for 2020. Non-GAAP diluted net income per share was $3.99 for 2021, based on 167.1 million diluted weighted-average shares outstanding, compared to $3.35 for 2020, based on 167.7 million diluted weighted-average shares outstanding.
- Cash Flow: In 2021, cash flow from operations was $1.50 billion compared to $1.08 billion in 2020.
- Free Cash Flow1: Free cash flow was $1.20 billion during 2021, compared to $907.8 million in 2020.
Guidance
For the first quarter of 2022, Fortinet currently expects:
- Revenue in the range of $865 million to $895 million
- Billings in the range of $1.050 billion to $1.090 billion
- Non-GAAP gross margin in the range of 75.5% to 76.5%
- Non-GAAP operating margin in the range of 19.5% to 20.5%
- Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.75 to $0.80, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 166 million to 168 million.
For the fiscal year 2022, Fortinet currently expects:
- Revenue in the range of $4.275 billion to $4.325 billion
- Service revenue in the range of $2.685 billion to $2.715 billion
- Billings in the range of $5.400 billion to $5.480 billion
- Non-GAAP gross margin in the range of 74.0% to 76.0%
- Non-GAAP operating margin in the range of 24.0% to 26.0%
- Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $4.85 to $5.00, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 169 million to 171 million.
These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matter. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.
1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
2 Bookings represents the total value of all orders received during the fiscal period. Backlog represents orders received but not fulfilled and excludes Alaxala. When an order is fulfilled, billings and revenue are recognized.
Conference Call Details
Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. The call can be accessed by dialing (877) 303-6913 (domestic) or (224) 357-2188 (international) with conference ID #1957267. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com
First Quarter 2022 Virtual Conference Participation Schedule:
- Morgan Stanley Technology, Media & Telecom Conference
March 9, 2022 – San Francisco, CA
Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information and listen to the webcast of each event, please visit the Investor Relations page of Fortinet’s website at https://investor.fortinet.com. The schedule is subject to change.
About Fortinet (www.fortinet.com)
Fortinet (Nasdaq: FTNT) secures the largest enterprise, service provider, and government organizations around the world. Fortinet empowers its customers with complete visibility and control across the expanding attack surface and the power to take on ever-increasing performance requirements today and into the future. The Fortinet Security Fabric platform can address the most critical security challenges and protect data across the entire digital infrastructure, whether in networked, application, multi-cloud or edge environments. Both a technology company and a learning organization, the Fortinet Network Security Institute has one of the largest and broadest cybersecurity training programs in the industry. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.
Copyright © 2022 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiCWP, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiEdge, FortiEDR, FortiExplorer, FortiExtender, FortiFirewall, FortiFone, FortiGSLB, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMoM, FortiMonitor, FortiNAC, FortiNDR, FortiPenTest, FortiPhish, FortiPlanner, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecorder, FortiSASE, FortiSDNConnector, FortiSIEM, FortiSMS, FortiSOAR, FortiSwitch, FortiTester, FortiToken, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM and FortiXDR. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.
FTNT-F
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding demand for our products and services, guidance and expectations around future financial results, including guidance and expectations for the first quarter and full year 2022, statements regarding the momentum in our business and future growth expectations, and statements regarding our robust pipeline, market opportunity and market size, strong business momentum, and expectations of several more years of solid growth. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic; significantly heightened supply chain challenges due to the current global environment; negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (SEC), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.
COVID-19 Impact
While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending March 31, 2022, our annual results for 2022, and beyond. To highlight the uncertainty remaining for the three-month period ending March 31, 2022, it should be noted that, due to customer buying patterns and the efforts of our sales force and channel partners to meet or exceed quarterly quotas, we have historically received a substantial portion of each quarter’s sales orders and generated a substantial portion of each quarter’s billings and revenue during the last two weeks of the quarter. Additionally, significantly heightened supply chain challenges are impacting businesses around the globe. If we experience significant changes in our billings growth rates or if we are unable to supply product to meet demand, it will impact product revenue in the current quarter and FortiGuard and FortiCare service revenues in subsequent quarters, as we sell annual and multi-year service contracts that are recognized ratably over the contractual service term. In addition, the broader implications of the pandemic on our business and operations and our financial results, including the extent to which the effects of the pandemic will impact future results and growth in the cybersecurity industry, remain uncertain. The duration and severity of the economic downturn from the pandemic may negatively impact our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources in a material way. As a result, the effects of the pandemic may not be fully reflected in our results of operations until future periods.
Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.
Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.
Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.
Non-GAAP net income and diluted net income per share attributable to Fortinet, Inc. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies, a tax adjustment required for an effective tax rate on a non-GAAP basis and adjustments attributable to non-controlling interests, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.
FORTINET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in millions)
| December 31, 2021 |
December 31, 2020 |
||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 1,319.1 | $ | 1,061.8 | |||
| Short-term investments | 1,194.0 | 775.5 | |||||
| Marketable equity securities | 38.6 | — | |||||
| Accounts receivable—net | 807.7 | 720.0 | |||||
| Inventory | 175.8 | 139.8 | |||||
| Prepaid expenses and other current assets | 65.4 | 43.3 | |||||
| Total current assets | 3,600.6 | 2,740.4 | |||||
| LONG-TERM INVESTMENTS | 440.8 | 118.3 | |||||
| PROPERTY AND EQUIPMENT—NET | 687.6 | 448.0 | |||||
| DEFERRED CONTRACT COSTS | 423.3 | 304.8 | |||||
| DEFERRED TAX ASSETS | 342.3 | 245.2 | |||||
| GOODWILL AND OTHER INTANGIBLE ASSETS—NET | 188.7 | 124.6 | |||||
| OTHER ASSETS | 235.8 | 63.2 | |||||
| TOTAL ASSETS | $ | 5,919.1 | $ | 4,044.5 | |||
| LIABILITIES AND EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ | 148.4 | $ | 141.6 | |||
| Accrued liabilities | 197.3 | 149.2 | |||||
| Accrued payroll and compensation | 195.0 | 145.9 | |||||
| Deferred revenue | 1,777.4 | 1,392.8 | |||||
| Total current liabilities | 2,318.1 | 1,829.5 | |||||
| DEFERRED REVENUE | 1,675.5 | 1,212.5 | |||||
| INCOME TAX LIABILITIES | 79.5 | 90.3 | |||||
| LONG-TERM DEBT | 988.4 | — | |||||
| OTHER LIABILITIES | 59.2 | 56.2 | |||||
| Total liabilities | 5,120.7 | 3,188.5 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| EQUITY: | |||||||
| Common stock | 0.2 | 0.2 | |||||
| Additional paid-in capital | 1,254.2 | 1,207.2 | |||||
| Accumulated other comprehensive income (loss) | (4.8) | 0.7 | |||||
| Accumulated deficit | (467.9) | (352.1) | |||||
| Total Fortinet, Inc. stockholders’ equity | 781.7 | 856.0 | |||||
| Non-controlling interests | 16.7 | — | |||||
| Total equity | 798.4 | 856.0 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 5,919.1 | $ | 4,044.5 | |||
FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
||||||||||||
| REVENUE: | |||||||||||||||
| Product | $ | 378.9 | $ | 288.4 | $ | 1,255.0 | $ | 916.4 | |||||||
| Service | 584.7 | 459.6 | 2,087.2 | 1,678.0 | |||||||||||
| Total revenue | 963.6 | 748.0 | 3,342.2 | 2,594.4 | |||||||||||
| COST OF REVENUE: | |||||||||||||||
| Product | 146.5 | 107.4 | 487.7 | 352.4 | |||||||||||
| Service | 81.8 | 59.6 | 295.3 | 217.6 | |||||||||||
| Total cost of revenue | 228.3 | 167.0 | 783.0 | 570.0 | |||||||||||
| GROSS PROFIT: | |||||||||||||||
| Product | 232.4 | 181.0 | 767.3 | 564.0 | |||||||||||
| Service | 502.9 | 400.0 | 1,791.9 | 1,460.4 | |||||||||||
| Total gross profit | 735.3 | 581.0 | 2,559.2 | 2,024.4 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development | 112.6 | 89.0 | 424.2 | 341.4 | |||||||||||
| Sales and marketing | 367.7 | 291.4 | 1,345.7 | 1,071.9 | |||||||||||
| General and administrative | 41.3 | 32.4 | 143.5 | 119.5 | |||||||||||
| Gain on intellectual property matter | (1.2) | (1.2) | (4.6) | (40.2) | |||||||||||
| Total operating expenses | 520.4 | 411.6 | 1,908.8 | 1,492.6 | |||||||||||
| OPERATING INCOME | 214.9 | 169.4 | 650.4 | 531.8 | |||||||||||
| INTEREST INCOME | 1.0 | 2.0 | 4.5 | 17.7 | |||||||||||
| INTEREST EXPENSE | (4.5) | — | (14.9) | — | |||||||||||
| OTHER INCOME (EXPENSE)—NET | (4.1) | 0.3 | (11.6) | (7.8) | |||||||||||
| INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT | 207.3 | 171.7 | 628.4 | 541.7 | |||||||||||
| PROVISION FOR INCOME TAXES | 3.7 | 25.0 | 14.1 | 53.2 | |||||||||||
| LOSS FROM EQUITY METHOD INVESTMENT | (4.8) | — | (7.6) | — | |||||||||||
| NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 198.8 | 146.7 | 606.7 | 488.5 | |||||||||||
| Less: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | (0.2) | — | (0.1) | — | |||||||||||
| NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 199.0 | $ | 146.7 | $ | 606.8 | $ | 488.5 | |||||||
| Net income per share attributable to Fortinet, Inc.: | |||||||||||||||
| Basic | $ | 1.22 | $ | 0.90 | $ | 3.72 | $ | 2.98 | |||||||
| Diluted | $ | 1.19 | $ | 0.89 | $ | 3.63 | $ | 2.91 | |||||||
| Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | |||||||||||||||
| Basic | 163.0 | 162.5 | 163.2 | 164.2 | |||||||||||
| Diluted | 167.0 | 165.5 | 167.1 | 167.7 | |||||||||||
FORTINET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
| Year Ended | |||||||
| December 31, 2021 |
December 31, 2020 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income including non-controlling interests | $ | 606.7 | $ | 488.5 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Stock-based compensation | 207.9 | 191.7 | |||||
| Amortization of deferred contract costs | 175.9 | 137.4 | |||||
| Depreciation and amortization | 84.4 | 68.8 | |||||
| Amortization of investment premiums | 6.9 | 1.3 | |||||
| Loss from equity method investment | 7.6 | — | |||||
| Other | 7.9 | 6.0 | |||||
| Changes in operating assets and liabilities, net of impact of business combinations: | |||||||
| Accounts receivable—net | (72.5) | (176.4) | |||||
| Inventory | (19.4) | (42.2) | |||||
| Prepaid expenses and other current assets | (17.7) | (2.8) | |||||
| Deferred contract costs | (294.5) | (205.1) | |||||
| Deferred tax assets | (94.0) | (10.5) | |||||
| Other assets | (19.0) | (4.6) | |||||
| Accounts payable | (13.1) | 37.4 | |||||
| Accrued liabilities | 49.9 | 45.8 | |||||
| Accrued payroll and compensation | 44.0 | 43.1 | |||||
| Other liabilities | (0.7) | 9.7 | |||||
| Deferred revenue | 839.4 | 495.6 | |||||
| Net cash provided by operating activities | 1,499.7 | 1,083.7 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of investments | (2,308.0) | (1,079.0) | |||||
| Sales of investments | 85.5 | 152.2 | |||||
| Maturities of investments | 1,470.3 | 1,018.8 | |||||
| Purchases of property and equipment | (295.9) | (125.9) | |||||
| Purchases of investment in privately held company | (160.0) | — | |||||
| Payments made in connection with business combinations, net of cash acquired | (74.9) | (40.2) | |||||
| Purchases of marketable equity securities | (42.5) | — | |||||
| Other | 0.4 | 1.3 | |||||
| Net cash used in investing activities | (1,325.1) | (72.8) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from long-term borrowings, net of discount and underwriting fees | 989.4 | — | |||||
| Payments for debt issuance costs | (2.4) | — | |||||
| Repurchase and retirement of common stock | (741.8) | (1,080.1) | |||||
| Proceeds from issuance of common stock | 26.0 | 22.1 | |||||
| Taxes paid related to net share settlement of equity awards | (167.9) | (108.2) | |||||
| Payments of debt assumed in connection with business combinations | (19.5) | (4.1) | |||||
| Other | (1.0) | (1.3) | |||||
| Net cash provided by (used in) financing activities | 82.8 | (1,171.6) | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.1) | — | |||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 257.3 | (160.7) | |||||
| CASH AND CASH EQUIVALENTS—Beginning of year | 1,061.8 | 1,222.5 | |||||
| CASH AND CASH EQUIVALENTS—End of year | $ | 1,319.1 | $ | 1,061.8 | |||
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)
Reconciliation of net cash provided by operating activities to free cash flow
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
||||||||||||
| Net cash provided by operating activities | $ | 366.8 | $ | 296.5 | $ | 1,499.7 | $ | 1,083.7 | |||||||
| Less: Purchases of property and equipment | (151.3) | (32.3) | (295.9) | (125.9) | |||||||||||
| Less: Proceeds from intellectual property matter | — | — | — | (50.0) | |||||||||||
| Free cash flow | $ | 215.5 | $ | 264.2 | $ | 1,203.8 | $ | 907.8 | |||||||
| Net cash used in investing activities | $ | (265.9) | $ | (65.0) | $ | (1,325.1) | $ | (72.8) | |||||||
| Net cash provided by (used in) financing activities | $ | (633.6) | $ | (52.0) | $ | 82.8 | $ | (1,171.6) | |||||||
Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income attributable to Fortinet, Inc. and diluted net income per share attributable to Fortinet, Inc.
| Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | ||||||||||||||||||||||
| GAAP Results | Adjustments | Non-GAAP Results | GAAP Results | Adjustments | Non-GAAP Results | ||||||||||||||||||
| Operating income | $ | 214.9 | $ | 59.8 | (a) | $ | 274.7 | $ | 169.4 | $ | 50.5 | (b) | $ | 219.9 | |||||||||
| Operating margin | 22.3 | % | 28.5 | % | 22.6 | % | 29.4 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Stock-based compensation | 54.2 | 48.9 | |||||||||||||||||||||
| Amortization of acquired intangible assets | 6.8 | 2.8 | |||||||||||||||||||||
| Gain on intellectual property matter | (1.2) | (1.2) | |||||||||||||||||||||
| Tax adjustment | (52.4) | (c) | (21.7) | (c) | |||||||||||||||||||
| Adjustments attributable non-controlling interests | (0.6) | (d) | — | ||||||||||||||||||||
| Net income attributable to Fortinet, Inc. | $ | 199.0 | $ | 6.8 | $ | 205.8 | $ | 146.7 | $ | 28.8 | $ | 175.5 | |||||||||||
| Diluted net income per share attributable to Fortinet, Inc. | $ | 1.19 | $ | 1.23 | $ | 0.89 | $ | 1.06 | |||||||||||||||
| Shares used in diluted net income per share attributable to Fortinet, Inc. calculations | 167.0 | 167.0 | 165.5 | 165.5 | |||||||||||||||||||
(a) To exclude $54.2 million of stock-based compensation and $6.8 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended December 31, 2021.
(b) To exclude $48.9 million of stock-based compensation and $2.8 million of amortization of acquired intangible assets, offset by a $1.2 million gain on intellectual property matter in the three months ended December 31, 2020.
(c) Non-GAAP financial information is adjusted to an overall effective tax rate of 21% in the three months ended December 31, 2021 and 2020, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(d) Adjustments related to the non-GAAP results attributable to non-controlling interests, which were adjusted to an effective tax rate of 31% for the subsidiary of Alaxala Networks Corporation (“Alaxala”) in the three months ended December 31, 2021.
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||
| GAAP Results | Adjustments | Non-GAAP Results | GAAP Results | Adjustments | Non-GAAP Results | ||||||||||||||||||
| Operating income | $ | 650.4 | $ | 225.1 | (a) | $ | 875.5 | $ | 531.8 | $ | 166.2 | (b) | $ | 698.0 | |||||||||
| Operating margin | 19.5 | % | 26.2 | % | 20.5 | % | 26.9 | % | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Stock-based compensation | 211.2 | 193.8 | |||||||||||||||||||||
| Amortization of acquired intangible assets | 18.5 | 13.3 | |||||||||||||||||||||
| Gain on intellectual property matter | (4.6) | (40.2) | |||||||||||||||||||||
| Litigation-related matter | — | (0.7) | |||||||||||||||||||||
| Loss on investments in privately-held companies | — | 4.3 | (c) | ||||||||||||||||||||
| Tax adjustment | (165.1) | (d) | (96.4) | (d) | |||||||||||||||||||
| Adjustments attributable non-controlling interests | (0.8) | (e) | — | ||||||||||||||||||||
| Net income attributable to Fortinet, Inc. | $ | 606.8 | $ | 59.2 | $ | 666.0 | $ | 488.5 | $ | 74.1 | $ | 562.6 | |||||||||||
| Diluted net income per share attributable to Fortinet, Inc. | $ | 3.63 | $ | 3.99 | $ | 2.91 | $ | 3.35 | |||||||||||||||
| Shares used in diluted net income per share calculations | 167.1 | 167.1 | 167.7 | 167.7 | |||||||||||||||||||
(a) To exclude $211.2 million of stock-based compensation and $18.5 million of amortization of acquired intangible assets, offset by a $4.6 million gain on intellectual property matter in 2021.
(b) To exclude $193.8 million of stock-based compensation and $13.3 million of amortization of acquired intangible assets, offset by a $40.2 million gain on intellectual property matter and a $0.7 million adjustment for a litigation-related matter in 2020.
(c) To exclude a $4.3 million impairment charge on an investment in a privately held company in 2020.
(d) Non-GAAP financial information is adjusted to an overall effective tax rate of 21% in 2021 and 2020, on a non-GAAP basis, which differs from the GAAP effective tax rate.
(e) Adjustments related to the non-GAAP results attributable to non-controlling interests, which were adjusted to an effective tax rate of 31% for the subsidiary of Alaxala in 2021.
Reconciliation of total revenue to total billings
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, 2021 |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
||||||||||||
| Total revenue | $ | 963.6 | $ | 748.0 | $ | 3,342.2 | $ | 2,594.4 | |||||||
| Add: Change in deferred revenue | 346.5 | 213.3 | 847.6 | 496.2 | |||||||||||
| Less: Deferred revenue balance acquired in business acquisitions | — | (0.4) | (4.1) | (0.6) | |||||||||||
| Less: Adjustment due to adoption of ASU 2021-083 | (4.3) | — | (4.3) | — | |||||||||||
| Total billings | $ | 1,305.8 | $ | 960.9 | $ | 4,181.4 | $ | 3,090.0 | |||||||
3 We early adopted ASU 2021-08 on a retrospective basis and effective for us beginning on January 1, 2021. The adoption of ASU 2021-08 resulted in a $4.3 million adjustment attributable to the acquisition of Alaxala in 2021, as a result of the revised measurement of deferred revenue for acquisition.
| Investor Contact: | Media Contact: | |
| Peter Salkowski | Sandra Wheatley | |
| Fortinet, Inc. | Fortinet, Inc. | |
| 408-331-4595 | 408-391-9408 | |
| psalkowski@fortinet.com | swheatley@fortinet.com |
LeddarTech Announces 140 Million USD in Series D Financing Combined With Debt Facility
The latest financing supports LeddarTech’s accelerated growth and development efforts for its unique proprietary sensor fusion and perception automotive solutions.
QUEBEC CITY, Feb. 03, 2022 (GLOBE NEWSWIRE) — LeddarTech®, a global leader in providing the most flexible, robust and accurate ADAS and AD sensing technology, is pleased to announce a successful financing round with an investment of US$ 140M, which comprises a Series D first close of US$ 116M and debt facility of US$ 24M.
FS Investors led the financing round with the participation of Investissement Québec, BDC Capital, Go Capital, certain funds managed by Fidelity Investments Canada ULC, Fonds de solidarité FTQ, Export Development Canada, ams OSRAM, Desjardins Capital, UI Investissement, Cowen Investment II LLC and other LeddarTech management. The debt facility was secured with Desjardins Group.
This investment will accelerate the development and commercialization of LeddarTech solutions. In addition, LeddarTech will use the funds to augment engineering resources to meet the demands from global OEM and Tier 1-2 automotive customers actively engaged with the company for sensor fusion and perception sensing solutions.
“Our decision to partner with LeddarTech began with our introduction to the corporate senior management team. Individually, the senior team possess decades of experience in the technology industry. In addition, many have worked with major global automotive and sensing technology companies,” stated Nick Stone, founder and partner of FS Investors. “An extensive due diligence process coupled with strong customer validation confirmed that LeddarTech’s unique solution is the best positioned in the market to unlock mass adoption of ADAS and AD by breaking typical software dependency on hardware in sensing,” according to Mr. Stone, concluding that: “The LeddarTech solution, called LeddarVision™, provides customers with the flexibility to quickly scale across vehicle models and deliver faster to market with greater performance at a lower cost.”
“The success of this round is a testament to the growth and industry recognition LeddarTech has achieved. I am delighted to welcome FS Investors as our most recent investors, who bring vast experience and expertise in the deep tech sector,” stated Charles Boulanger, CEO of LeddarTech. “I was impressed by the quality and thoroughness of their due diligence and their exceptional understanding of the ADAS and AD market, which confirms the value of our unique software solution. Our team and I look forward to working with FS Investors, our other new investors and our existing partners to enable our customers to significantly deploy our reliable and cost-effective ADAS and AD solutions across their brands and markets,” Mr. Boulanger concluded.
Cowen and Desjardins Capital Markets acted as co-advisors in this investment round.
About LeddarTech
Founded in 2007, LeddarTech has evolved to become a comprehensive end-to-end environmental sensing company by enabling customers to solve critical sensing, fusion and perception challenges across the entire value chain. The company offers cost-effective and scalable solutions such as LeddarVision™, a raw-data sensor fusion and perception platform that generates a comprehensive 3D environmental model with multi-sensor configurations to support Level 2+ to Level 5 full autonomy. It is scalable to support all vehicle automation levels. In addition, LeddarTech supports LiDAR makers and Tier 1-2 automotive system integrators with LeddarSteer™, a digital beam steering device, and the LiDAR XLRator development solution for automotive-grade solid-state LiDAR development based on the LeddarEngine™ and core components from global semiconductor partners. The company is responsible for several innovations in cutting-edge automotive and mobility remote-sensing applications, with over 100 patented technologies (granted or pending) enhancing ADAS and autonomous driving capabilities.
Additional information about LeddarTech is accessible at www.leddartech.com and on LinkedIn, Twitter, Facebook and YouTube.
Contact:
Daniel Aitken, Vice-President of Global Marketing, Communications and Investor Relations, LeddarTech Inc.
Tel.: + 1-418-653-9000 ext. 232
daniel.aitken@leddartech.com
Leddar, LeddarTech, LeddarSteer, LeddarEngine, LeddarVision, LeddarSP, LeddarCore, LeddarEcho, VAYADrive, VayaVision, XLRator and related logos are trademarks or registered trademarks of LeddarTech Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
MULTIMEDIA UPDATE – Modelo Rewards UFC’s Biggest Fans With Unprecedented Access Year-Long to Premier Fight Nights
Top prize includes highly coveted floor seats to every UFC Pay-Per-View event for an entire year, and behind-the-scenes access with UFC Broadcaster Jon Anik
UFC
UFC
CHICAGO, Feb. 03, 2022 (GLOBE NEWSWIRE) — Modelo, the Official Beer of UFC, knows that UFC fans are as passionate as they come. To reward their Fighting Spirit, Modelo is providing unprecedented access and experiences to the sport they love. With the help of DraftKings Inc. (Nasdaq: DKNG), UFC enthusiasts will have a shot to compete and win cash prizes and the “golden ticket” grand prize: floor seats, travel and accommodations, to the year’s biggest UFC Pay-Per-View events in Las Vegas and other cities across the United States for a full year*.
The unique prizes don’t end there. In addition to a pair of gold tickets to sit in floor seats for the biggest fights of the year, the grand prize winner will get to be a guest of UFC broadcaster, Jon Anik during fight week, where they can take part in Jon’s pre-fight announcer rituals, receive exclusive behind-the-scenes access to pre-fight weigh-ins, and participate in meet-and-greets with iconic UFC personalities. Anik will also lend his trademark high-energy voice to reward the grand prize winners with special walkout announcement videos, which are normally reserved for UFC fighters as they enter the Octagon on fight night, while the winner and their guest walk to their seats, along with much more!
“Modelo and UFC are offering the ultimate fighting experience for our passionate fans – giving an opportunity to win unparalleled and close-up access to all of the best action,” Anik said. “I just knew I wanted to be part of that fan experience, especially because of the sheer number of times I have delivered Modelo’s ‘Brewed for those with the Fighting Spirit,’ tagline over the years.”
The contest will run through DraftKings, and fans 21+ can enter for their shot to win by visiting draftkings.com/modelo. Fans will have the opportunity to compete for prizes for each PPV event- February 12, March 5 and April 9. The best lineups from the first two contests will win cash prizes and the top score from the final week will win the Modelo “golden ticket” grand prize. The contest opens February 1, 2022 and runs until April 9, 2022.
“As we continue our ongoing partnership with the UFC, Modelo is always thinking about how to bring one-of-a-kind experiences to our passionate, shared fanbase,” said Greg Gallagher, Vice President of Brand Marketing, Modelo. “We can’t wait to reward the Fighting Spirit of fans with what we’re calling the ‘gold standard’ of experiences and our biggest UFC prizing yet – an opportunity to immerse themselves into UFC in a big way that hasn’t been done before.”
*Pick winning fighters and you could win Grand Prize tickets to 10 UFC PPV fights in the U.S., June 2022 – May 2023. No purchase or payment necessary to enter. Must be 21 years or older to enter with verified age. 50 U.S./DC only. Void where prohibited. Contest series to begin 2/1/22 and end 4/15/22. Exact Contest dates are subject to change, pending UFC fight schedules. Eligibility restrictions apply. See draftkings.com for details and Official Rules. No alcohol is awarded with any prize.
ABOUT MODELO®
Born in 1925 in the small town of Tacuba, Mexico, Modelo has been bringing distinctive high-quality beer to people ever since, including Modelo Especial®,
About UFC®
UFC® is the world’s premier mixed martial arts organization (MMA), with more than 625 million fans and 187 million social media followers. The organization produces more than 40 live events annually in some of the most prestigious arenas around the world, while broadcasting to approximately 900M TV households across more than 175 countries. UFC’s athlete roster features the world’s best MMA athletes representing more than 75 countries. The organization’s digital offerings include UFC FIGHT PASS®, one of the world’s leading streaming services for combat sports. UFC is owned by global entertainment, sports and content company Endeavor, and is headquartered in Las Vegas, Nevada. For more information, visit UFC.com and follow UFC at Facebook.com/UFC, Twitter, Snapchat, Instagram and TikTok: @UFC.
Press Contact:
Stephanie McGuane
Stephanie.McGuane@Cbrands.com
A photo accompanying this announcement is available at https://www.globenewswire.com/
Indonesia.breaks down scenario to achieve carbon neutrality in G20
The Indonesian Government will present a scenario for the national energy transition from fossil fuels to new and renewable energy in the Grand National Energy Strategy (GSEN) roadmap to the G20 forum.
“The Indonesian G20 presidency will be used by the government to introduce the world to our scenario in achieving Net Zero Emission (NZE) by 2060 or sooner,” Expert Staff in Strategic Planning for Minister of Energy and Mineral Resources Yudo Dwinanda Priaadi noted in a statement on Friday.
Priaadi explained that the GSEN targets a renewable energy mix of 100 percent by 2060, with a capacity of 587 gigawatts, including Solar Power Plant (PLTS), with 361 gigawatts; Hydroelectric Power Plant (PLTA), 83 gigawatts; Wind Power Plant (PLTB), 39 gigawatts; Nuclear Power Plant (PLTN), 35 gigawatts; Bio-energy Power Plant (PLTBio), 37 gigawatts; Geothermal Power Plant (PLTP), 18 gigawatts; and Ocean Power Plant (PLTL), 13.4 gigawatts.
The government emphasized that additional power generation after 2030 will only be sourced from renewable energy.
“Starting from 2035, Indonesia’s Variable Renewable Energy (VRE) will be in the form of PLTS, PLTBio, and PLTL. PLTP will also be maximized up to 75 percent of its potential,” Priaadi explained.
He later noted that the government will no longer develop Electric Steam Power Plant (PLTU), except for those that are already in contracts and construction. PLTU owned by State-Owned Electricity Company (PLN) will stop operating faster than asset revaluation.
Meanwhile, PLTU owned by a private electricity company will retire after the end of the power purchase agreement. Meanwhile, gas and steam power plants (PLTGU) will stop operating after 30 years.
The government will also maximize the use of PLTA by transferring electricity to the load centers in other islands to support national energy security. In addition, PLTA will provide a balance for variable renewable energy generators.
The nuclear power plant will also start around 2049 to maintain system reliability. The pumped storage will start in 2025 with a 2060 target of 4.2 gigawatts.
Priaadi noted that the Battery Energy Storage System (BESS) technology will become enormous by 2031, with the capability to reach 140 gigawatts by 2060.
“The government will also utilize hydrogen in 2031. In 2060, it is expected to reach 52 gigawatts,” he remarked.
Source: Antara News
Lahadalia appointed ad interim energy and mineral resources minister
President Joko Widodo has appointed Bahlil Lahadalia, the current investment minister and head of the Investment Coordinating Board (BKPM), as the ad interim minister of energy and mineral resources (ESDM).
The appointment was based on a letter of the minister of state secretary, dated February 3, 2022, Tina Talisa, special staff to the Minister of Investment, noted in a statement here on Friday.
“President Joko Widodo has appointed Minister of Investment and Head of BKPM Bahlil Lahadalia as the ad interim minister of energy and mineral resources,” she stated.
Lahadalia chaired a meeting with all first echelon officials of the Ministry of Energy and Mineral Resources (ESDM) on Friday this morning.
Talisa, however, did not explain the reason behind the appointment of Lahadalia in the ministerial post. She noted that Lahadalia continued to hold the position of investment minister and head of BKPM.
“Mr Bahlil holds concurrent positions as minister of investment/head of BKPM and minister of energy and mineral resources ad interim or temporarily only for the next few days,” she remarked.
In the meantime, a spokesman of the ESDM Ministry told the press that Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif was undergoing self-isolation.
“The minister is in good condition. Now, he is in self-isolation. God willing, he will return to work next week. Please pray for him,” Head of the Communications, Public Information Service and Cooperation Bureau of the ESDM Ministry Agung Pribadi noted in a statement here on Friday. Pribadi did not elaborate on the reason behind Minister Tasrif undergoing self-isolation. However, he confirmed that Investment Minister Lahadalia was the ad interim minister of energy and mineral resources.
Indonesia is currently experiencing a spike in the number of COVID-19 cases.
Source: Antara News
Fintech financing for MSMEs reaches Rp13.6 trillion in 2021: OJK
Micro, small, and medium enterprises (MSMEs) obtained Rp13.6 trillion in financing from peer-to-peer fintech lenders in 2021, head of the Syriah finance and MSME ecosystem task force of the Financial Services Authority (OJK) has said.
“The fintech industry is growing. The money that it lends (to MSMEs) reached Rp13.6 trillion in 2021,” Ahmad Buchori noted during a media briefing on Friday.
There are 103 fintech peer-to-peer lenders holding OJK permits for financing, which comprise 10.9 million lenders and 13.4 million borrowers, he informed.
During the event, he also highlighted that the Micro Wakaf Bank (BWM), established in 2017, has provided up to Rp78.2 billion in financing to MSMEs.
“The figure is expected to increase this year because the government is increasingly encouraging and expanding BWM,” he noted.
OJK will continue to push financing for MSMEs so that they can survive the impact of COVID-19, Buchori said.
“The pandemic and PPKM (public activity restrictions) have affected MSMEs, with 84 percent of them experiencing a decline in revenue and 62 percent encountering hurdles concerning employees and operational troubles,” he informed.
This is despite the fact that MSMEs, currently numbered at 65 million, make a large contribution to the national economy, he said.
MSMEs constitute 99 percent of the total businesses in Indonesia and employ 120 million workers, or 97 percent of Indonesia’s total workforce, he noted.
Around 15.65 percent of national exports and 60.51 percent of Indonesia’s total gross domestic product (GDP) is contributed by MSMEs, he added.
Hence, the effort to recover this sector is important to support the growth of the national economy, Buchori said.
OJK is also carrying out numerous polices, including extending a number of incentives until 2023 so that MSMEs can recover from the effects of the pandemic, he added.
Source: Antara News
Reopening of international flights to revive Bali economy: minister
Bali’s economy is expected to recover with the reopening of international flights to the island, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has said.
“I hope it can help the people’s economy in Bali to be able to revive,” Pandjaitan remarked here on Friday.
He also emphasized that international tourists arriving in Bali will be required to undergo quarantine, in accordance with Circular Letter No. 4 of 2022 issued by the COVID-19 Handling Task Force.
“I also request all parties to strictly comply with the health protocols enforced by the COVID-19 Task Force. Because this is all meaningless if we are not disciplined,” he said.
International flights to Bali were reopened for international travelers and non-Indonesian migrant workers (non-PMI) from Friday (February 4, 2022).
The opening of tourism is targeted at reviving the economy of the island of Bali, which has been severely affected by the COVID-19 pandemic, officials said.
All international travelers arriving in Bali will be required to show proof of vaccination such as vaccine cards. They will be required to have been vaccinated a minimum of 14 days prior to departure and submit negative results of RT-PCR tests, taken at the country of origin a maximum of 2×24 hours before departure.
Bali is providing two additional choices for quarantine sites that have been CHSE-certified by the Ministry of Tourism and Creative Economy: a “bubble quarantine” at five hotels with a total of 447 rooms in Nusa Dua, Ubud, Sanur, and Jimbaran and a “live onboard” quarantine on ships.
All types of quarantine facilities have been prepared at isolation hotels and SOPs (standard operating procedures) have been formulated for anticipating positive cases and tracing close contacts.
On February 3, 2022, Bali Airport served the first regular international flight after the pandemic. The flight, Garuda Indonesia GA 881, arrived from Narita, Japan.
Source: Antara News
Minister Plate supports consolidation in SKKL management
Communication and Informatics Minister Johnny G. Plate encouraged related stakeholders to consolidate to realize the management of the Sea Cable Communication System (SKKL) to support the national digital transformation agenda.
“This digital transformation is for the benefit of the country as well as for our national company. Now is the time for consolidation, especially in the telecommunications industry,” Plate stated at the SKKL meeting with cellular operators in Jakarta on Friday.
Coordination and consolidation of all fiber optic telecommunications service providers, especially SKKL, is deemed necessary in order to accelerate the ongoing digital transformation, he remarked.
“Let us consolidate for the telecommunications industry. This is because we are entering a new stage, specifically transformation and acceleration of digital transformation,” Plate noted.
The minister remarked that one of the challenges in managing SKKL was the imbalance between the domestic and international bandwidth per capita.
In comparison with 2019, the bandwidth capacity per capita only reached around 0.063, with a low ranking in the ASEAN. Plate attributed this to the large area and population of Indonesia.
” We need 55 Tbps of bandwidth capacity for the government projects in 2025. In 2020, our capacity reaches only 18.1 Tbps, which means we need a huge capacity, three folds higher than the capacity in 2020, in the next four or three years,” he remarked.
Plate emphasized that the government was currently working for the interests of the state and society. However, the government still pays attention to industrial developments.
The minister noted that currently, Indonesia should prioritize the acceleration of digital transformation to respond to the national interests as well as maintain the SKKL.
“That is why today I want to talk about SKKL. I receive information that Indonesia’s international bandwidth capacity is currently quite large, though per capita not being large enough. We must fix that,” he stressed.
Source: Antara News