(RTTNews) - Network security solutions provider Sourcefire, Inc. (FIRE)turned around to a profit in the third quarter, and guided fourth quarter and full-year expectations above Street view.
Sourcefire provides enterprise threat management and intelligent security infrastructure solutions in the U.S. and internationally.
Commenting on the results, John Burris, CEO of Sourcefire, said, "we achieved quarterly and year-to-date profitability on both an adjusted and a GAAP basis for the first time in the Company's history".
Net income for the quarter was $2.7 million or $0.09 per share, compared to year-ago loss of $1.7 million, or $0.07 per share. Adjusted earnings were $4.6 million, or $0.16 per share. Analysts were looking for earnings of 10 cents per share.
In three out of last four quarters, the company has topped estimates by an average 145.2%.
Revenues rose 35% to $27.4 million from $20.3 million last year. In the past three years, revenue has grown 68.4% to $75.67 million in 2008 from $44.93 million in 2006.
Looking ahead to the fourth quarter, the company sees earnings of $0.11 to $0.14 per share, or adjusted earnings of 17 to 20 cents per share, on revenues of $31.5 million to $33 million. Analysts are looking for earnings of 14 cents per share and revenues of $29.7 million.
for the fiscal year, the company sees earnings of $0.19 to $0.22 per share, or adjusted earnings of $0.41 to $0.44 per share, on revenues of $99.7 million to $101.2 million. Analysts foresee earnings of 32 cents per share on revenues of $96.05 million.
Last year, Sourcefire rebuffed a takeover bid from privately-held Barracuda Networks. The latest Barracuda bid valued Sourcefire at $8.25 a share, up 10% from an earlier offer of $7.50 per share.
Recently, Sourcefire shares were reiterated at "Buy", by Jefferies enterprise software analyst Katherine Egbert, who sees an improved climate for IT security software spending. The analyst also raised target price on the stock to $30 from $25. The stock closed Thursday's trade at $20.12.
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