Risk
2/28/2008
08:50 PM
George V. Hulme
George V. Hulme
Commentary
50%
50%

Sourcefire's Earnings Not So Hot. CEO Jackson Ousted.

Network security provider Sourcefire announced its earnings yesterday. The less-than-spectacular results show a company fighting numerous headwinds. So can it set its sail straight?

Network security provider Sourcefire announced its earnings yesterday. The less-than-spectacular results show a company fighting numerous headwinds. So can it set its sail straight?As a refresher for those who may not be familiar with Sourcefire, the company was founded in 2001 by Martin Roesch, the creator of the open source intrusion detection system known as SNORT. Sourcefire provides, among other network security capabilities, a management platform for SNORT. Sourcefire has a wealth of customers in health care and financial services, and is well entrenched in the U.S. armed services.

It's still not enough to help the company. In this latest quarter, Sourcefire reported revenue of $19.3 million and earnings per share at 10 cents. The Street estimated 20 million in revenue and 14 cents a share. Shares were down 10% in after-hours trading, and closed today at $6.34.

Shortly after its initial public offering in March of last year, Sourcefire's stock hit $18.00 a share -- and it's been an agonizing slugfest downward ever since. The big surprise during Thursday's call, at least to me, was the fact that six-year chairman and CEO Wayne Jackson is stepping down:

I am sure you've all seen the other press releases that we sent out this afternoon, announcing my decision to step down as Chairman and CEO of Sourcefire after a very productive six years with the company. When I joined Sourcefire, we were a small venture backed startup. Today, we are a strong public company that is well poised for future growth.

The board has commenced the search process for my successor. And given the strength of the company, I am confident that we will be able to attract a world class executive, who will help Sourcefire continue to build the operational and execution capabilities we need to manage our continued growth and increase shareholder value.

It's tough to guess about conversations that occur behind closed doors, but it looks like Jackson was tossed over the fence.

My prediction is whoever the replaces Jackson will have a number of challenges to overcome, and why I wouldn't expect Sourcefire to spark an upward bull run.

First, enterprise IT budgets heading south. IT security is more of a "discretionary" spend than many of us would like to believe. And, perhaps most important, enterprises are more interested in devices that handle a multitude of security threats -- from intrusion detection/prevention, firewall, anti-malware, content filtering, and short-order cooking ...

But there may be a life preserver tossed Sourcefire's way this year.

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Flash Poll
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2012-1978
Published: 2015-05-21
Multiple cross-site request forgery (CSRF) vulnerabilities in Simple PHP Agenda 2.2.8 and earlier allow remote attackers to hijack the authentication of administrators for requests that (1) add an administrator via a request to auth/process.php, (2) delete an administrator via a request to auth/admi...

CVE-2015-0741
Published: 2015-05-21
Multiple cross-site request forgery (CSRF) vulnerabilities in Cisco Prime Central for Hosted Collaboration Solution (PC4HCS) 10.6(1) and earlier allow remote attackers to hijack the authentication of arbitrary users, aka Bug ID CSCut04596.

CVE-2015-0742
Published: 2015-05-21
The Protocol Independent Multicast (PIM) application in Cisco Adaptive Security Appliance (ASA) Software 9.2(0.0), 9.2(0.104), 9.2(3.1), 9.2(3.4), 9.3(1.105), 9.3(2.100), 9.4(0.115), 100.13(0.21), 100.13(20.3), 100.13(21.9), and 100.14(1.1) does not properly implement multicast-forwarding registrati...

CVE-2015-0746
Published: 2015-05-21
The REST API in Cisco Access Control Server (ACS) 5.5(0.46.2) allows remote attackers to cause a denial of service (API outage) by sending many requests, aka Bug ID CSCut62022.

CVE-2015-0915
Published: 2015-05-21
Cross-site scripting (XSS) vulnerability in RAKUS MailDealer 11.2.1 and earlier allows remote attackers to inject arbitrary web script or HTML via a crafted attachment filename.

Dark Reading Radio
Archived Dark Reading Radio
Join security and risk expert John Pironti and Dark Reading Editor-in-Chief Tim Wilson for a live online discussion of the sea-changing shift in security strategy and the many ways it is affecting IT and business.