Palo Alto Networks Inc. (NYSE: PANW) reported fiscal third quarter 2014 adjusted diluted earnings per share (EPS) of $0.11 on revenue of $150.7 million. In the same period a year ago, the network security company reported EPS of $0.07 on revenue of $101.29 million. First-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.10 and $146.22 million in revenue.

On a GAAP basis, the company posted an EPS loss of $1.86 compared with a loss of $0.10 in the same quarter a year ago. Adjusted earnings exclude a legal settlement with Juniper Networks Inc. (NYSE: JNPR) which cost Palo Alto Networks $175 million in cash and stock or $1.52 a share. Other charges included $0.36 a share for stock-based compensation, $0.05 in acquisition costs, and $0.06 in litigation expense, among other items.

The company’s chairman/CEO said:

We achieved the highest rate of new customer acquisition in our history and now serve more than 17,000 customers globally … . [W]e have [also] reached a settlement with Juniper Networks of all litigation matters between us; this allows us to further focus our resources and time on our customers and growing our business.

The company did not publish any guidance, but consensus estimates for the fourth fiscal quarter call for EPS of $0.10 on revenues of $158.44 million. For the full fiscal year, EPS is expected to come in at $0.38 on revenues of $573.62 million.

While Palo Alto Networks is not exactly struggling, neither is it making the splash that many investors believed it would when it launched its IPO. Despite the CEO’s brave words, earnings growth in the second quarter was a penny and the estimated EPS for the current quarter gives that penny back. What saves the day is the Juniper settlement which removes a nasty overhang on the company’s profits.

Shares are trading up about up 8.7% in Wednesday’s after-hours trading at $75.55, in a 52-week range of $39.08 to $80.84. Thomson Reuters had a consensus analyst price target of around $84.60 before today’s results were announced.

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