Tech stock under pressure: Forescout Technologies Inc (NASDAQ: FSCT)

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Forescout Technologies Inc (NASDAQ: FSCT) stock fell over 9.9% on March 19th, 2018 (As of 11:48 AM; Source: Google finance).

The group intends to sell 500,000 shares of common stock and targeting to sell 3,911,000 shares of common stock. Moreover, the group intends to buy a further 661,650 shares of common stock. The group intends to use these net proceeds from its sale in this offering to fund certain tax withholding obligations.

The group reported that the U.S. Department of Defense’s (DoD) Defense Information Systems Agency (DISA) added ForeScout CounterACT® to its select list of commercial technology products receiving Security Technical Implementation Guides (STIG). This move is a part of their strategic review and expanding footprint across DoD customers, enabling them to gain foundational visibility of devices, including non-traditional Internet of Things (IoT) devices, connecting to their networks.

The group made a strategic alliance with CrowdStrike to deliver advanced endpoint and network threat protection. With this partnership, the group enabled joint threat hunting and automated incident response to help protect against data breaches.

Meanwhile, for the Fourth Quarter of 2017, the total revenue rose 33% yoy to $66.0 million, against pcp, while the Product revenue rose 26% yoy to $37.5 million, during the fourth quarter of 2016. The Maintenance and Professional Services revenue enhanced 45% yoy to $28.4 million.

The GAAP gross profit reached $49.9 million, or 76% of total revenue during the fourth quarter of 2017 from $34.2 million in the fourth quarter of 2016, or 69% of total revenue. The Non-GAAP gross profit reached $51.3 million, or 78% of total revenue, from $34.6 million in the fourth quarter of 2016, or 70% of total revenue.

For Full Year of 2017, the overall revenue rose 32% yoy to $220.9 million, while GAAP operating loss reached $87.7 million, or 40% of total revenue, from $71.4 million in the full year 2016, or 43% of total revenue. The Non-GAAP operating loss reached $45.1 million or 20% of total revenue, from $54.6 million in the full year 2016, or 33% of total revenue.

The group continued to enhance leverage in their business as non-GAAP gross margins and operating margins improved nicely year-over-year. The ongoing shift to customers buying more of their software products, improvements in sales productivity as their team becomes more tenured, and continued effective expense management.

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