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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.