Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Vulnerabilities / Threats

2/27/2009
02:34 PM
Dark Reading
Dark Reading
Products and Releases
50%
50%

Sourcefire Announces 2008 Fourth Quarter, Full Year Results

"Revenues for the quarter and full year were the highest in the company's history," says Sourcefire CEO John Burris

COLUMBIA, Md.--(BUSINESS WIRE)--Feb. 26, 2009-- Open source innovator and Snort' creator, Sourcefire, Inc. (Nasdaq: FIRE), a leader in Enterprise Threat Management, today announced financial results for its fiscal fourth quarter and twelve months ended December 31, 2008.

John Burris, Sourcefire's CEO stated, "Revenues for the quarter and full year were the highest in the Company's history. Even in this challenging environment, our customers are continuing to make our security solutions a spending priority, particularly in our federal sector where we saw revenue growth of 154% compared to last year. I am also encouraged by the traction we saw from our focus on international markets and the development of our indirect sales channel. For 2009, our goal is to expand on this success and continue to improve our operating margins as we build a path toward annual profitability on an adjusted basis."

Financial Highlights Total Revenues - Revenues for the fourth quarter of 2008 were $25.7 million compared to $19.3 million in the fourth quarter of 2007, an increase of 33%. Revenues for the twelve months ended December 31, 2008 were $75.7 million compared to $55.9 million for 2007, an increase of 35%.

Gross Profit - Gross profit for the fourth quarter of 2008 increased 38% to $20.0 million, or 78% of revenues, compared to $14.5 million, or 75% of revenues, in the fourth quarter of 2007. Gross profit for the twelve months ended December 31, 2008 increased 36% to $58.3 million, or 77% of revenues, compared to $43.0 million, or 77% of revenues, for 2007.

GAAP Earnings " On the basis of generally accepted accounting principles (GAAP), net income attributable to common stockholders was $2.3 million in the fourth quarter of 2008, or $0.08 per diluted share, compared with GAAP net income attributable to common stockholders of $0.8 million, or $0.03 per share, in the fourth quarter of 2007. GAAP net loss attributable to common stockholders for the twelve months ended December 31, 2008 was $6.1 million, or a loss of $0.24 per share, compared with GAAP net loss attributable to common stockholders of $6.5 million, or a loss of $0.32 per share, for 2007. GAAP net income/loss attributable to common stockholders includes the accretion of our preferred stock up until the time of our initial public offering in the first quarter of 2007. Therefore, the only period in which GAAP net income/loss attributable to common stockholders differed from GAAP net income/loss was the twelve months ended December 31, 2007.

Balance Sheet - As of December 31, 2008 the Company's cash, cash equivalents and investments totaled $101.6 million.

Non-GAAP Measures In evaluating the operating performance of its business, Sourcefire's management excludes certain charges and credits that are required by GAAP. These non-GAAP results provide useful information to both management and investors by excluding items that we believe may not be indicative of the Company's operating performance. These items share one or more of the following characteristics: they are unusual and Sourcefire does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; or they are unrelated to the ongoing operation of the business in the ordinary course. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.

Adjusted Net Income/Loss - Adjusted net income, which excludes stock-based compensation expense, was $3.4 million, or $0.13 per share, in the fourth quarter of 2008. This compared to adjusted net income of $2.6 million, or $0.10 per share, in the fourth quarter of 2007, which excludes stock-based compensation expense as well as expenses related to the acquisition of ClamAV. Adjusted net loss for the twelve months ended December 31, 2008 was $0.8 million, or a loss of $0.03 per share, which excludes stock-based compensation expense, a portion of which relates to the acceleration of vesting of equity awards in connection with the resignation of our former chief executive officer, as well as severance, legal and other CEO transition costs. This compared with adjusted net income of $1.0 million, or $0.05 per share, for 2007, which excludes stock-based compensation expense and the charge for in-process research and development costs and other expenses related to the acquisition of ClamAV.

2008 Company Highlights

Global Expansion

Grew international revenues to $18.1 million in 2008, up 30% over the 2007 level of $14.0 million

Enhanced EMEA Tiered Channel Program

Added channel development resources in Eastern Europe, Nordics, Germany, the UK, Middle East, Australia, Singapore and Japan

Federal Growth Grew federal sector revenues to $15.8 million in 2008, up 154% over the 2007 level of $6.2 million

Increased federal business to 21% of total revenues in 2008, up from 11% in 2007

Recruited federal resources, growing that team by more than 50% in 2008

Industry Achievement Positioned in the leaders quadrant of the Gartner Network Intrusion Prevention Appliances Magic Quadrant Report*

Won prestigious SC Magazine Award "Best Network Security" for Snort

Sourcefire founder and CTO Martin Roesch named to eWeek's Top 100 Most Influential People in IT Recognized by Network Products Guide's 2008 Product Innovation Award in enterprise threat management

Awarded Network Products Guide Readers Trust Award

Ranked on Deloitte's Technology Fast 50 for the Maryland region for the fourth time

Ranked on Deloitte's 2008 Technology Fast 500 in North America for the second consecutive year

Earned certification from ICSA Labs for a Payment Card Industry Data Security Standard (PCI DSS) Product Capability Assurance Report Product Innovation

Engineered and released the Sourcefire 3D' System 4.8 which provides users with a customized, role-based dashboard and superior automation for improved security

Increased protection for virtual environments using Sourcefire RNA which can now identify both physical systems and new VMware-based virtual machines as they are added to the network

Led the industry in same-day patch coverage with the Sourcefire Vulnerability Research Team

Competitive Advantage The Sourcefire 3D' System provides the following unique combination of capabilities:

Passively and automatically profiles every asset running on a network and identifies potentially vulnerable systems thereby allowing customers to remove those systems before they are compromised

Identifies abnormal behavior and attacks targeted at networks and allows customers to block these attacks in real time

Enables customers to develop customized detection rules to identify non-public exploits being launched against government and enterprise systems

Company Enters Settlement Agreement for IPO Litigation

In February 2009, the Company and the other defendants in the pending class action lawsuit related to the Company's initial public offering tentatively settled all claims in the lawsuit by entering into a settlement agreement with the lead plaintiff. The settlement requires final approval from the court, and no assurances can be given that the settlement will ultimately be approved. Neither the Company nor any of the other defendants admitted any wrongdoing in connection with the proposed settlement and, if finally approved, the settlement will result in the dismissal of all claims against all defendants. The Company recorded a $100,000 expense in the fourth quarter related to the terms of the settlement agreement and does not expect to incur any additional expenses with regard to the settlement other than legal fees.

First Quarter 2009 Outlook Based on information as of February 26, 2009, Sourcefire is establishing guidance for the first quarter of 2009 for revenue in the range of $16.2 million to $17.7 million, net loss per share in the range of $0.09 to $0.05 and, on an adjusted basis, a net loss per share in a range of $0.05 to $0.01. Our forecast of adjusted net loss per share excludes stock-based compensation expense in the expected range of $1.1 million to $1.2 million.

Conference Call and Webcast On Thursday, February 26, 2009 at 5:00 p.m. Eastern Time, Sourcefire will host a conference call to review these results. A listen-only web cast of the session will be available at http://investor.sourcefire.com. Those wishing to participate in the live session should use the following numbers to dial in: Calling from the United States or Canada: 800-299-7089 Calling from other countries: 617-801-9714 Pass code: 95919897 An online replay will be available at http://investor.sourcefire.com following the completion of the live call and will remain available for at least 90 days.

About Sourcefire Sourcefire, Inc. (Nasdaq: FIRE), Snort creator and open source innovator, is a world leader in Enterprise Threat Management (ETM) solutions. Sourcefire is transforming the way Global 2000 organizations and government agencies manage and minimize network security risks with its 3D Approach " Discover, Determine, Defend " to securing real networks. This ETM approach equips customers with an efficient and effective layered security defense " protecting network assets before, during and after an attack. Through the years, Sourcefire has been consistently recognized for its innovation and industry leadership by customers, media and industry analysts alike " with more than 40 awards and accolades. Today, the names Sourcefire and founder Martin Roesch have grown synonymous with innovation and network security intelligence. For more information about Sourcefire, please visit http://www.sourcefire.com.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Commentary
What the FedEx Logo Taught Me About Cybersecurity
Matt Shea, Head of Federal @ MixMode,  6/4/2021
Edge-DRsplash-10-edge-articles
A View From Inside a Deception
Sara Peters, Senior Editor at Dark Reading,  6/2/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
The State of Cybersecurity Incident Response
In this report learn how enterprises are building their incident response teams and processes, how they research potential compromises, how they respond to new breaches, and what tools and processes they use to remediate problems and improve their cyber defenses for the future.
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-23394
PUBLISHED: 2021-06-13
The package studio-42/elfinder before 2.1.58 are vulnerable to Remote Code Execution (RCE) via execution of PHP code in a .phar file. NOTE: This only applies if the server parses .phar files as PHP.
CVE-2021-34682
PUBLISHED: 2021-06-12
Receita Federal IRPF 2021 1.7 allows a man-in-the-middle attack against the update feature.
CVE-2021-31811
PUBLISHED: 2021-06-12
In Apache PDFBox, a carefully crafted PDF file can trigger an OutOfMemory-Exception while loading the file. This issue affects Apache PDFBox version 2.0.23 and prior 2.0.x versions.
CVE-2021-31812
PUBLISHED: 2021-06-12
In Apache PDFBox, a carefully crafted PDF file can trigger an infinite loop while loading the file. This issue affects Apache PDFBox version 2.0.23 and prior 2.0.x versions.
CVE-2021-32552
PUBLISHED: 2021-06-12
It was discovered that read_file() in apport/hookutils.py would follow symbolic links or open FIFOs. When this function is used by the openjdk-16 package apport hooks, it could expose private data to other local users.