DOW JONES NEWSWIRES
Sourcefire Inc.'s (FIRE) third-quarter earnings jumped by more
than half on better-than-forecast revenue, but its outlook for the
current quarter fell short of analysts' expectations.
Shares slumped 19% to $25 in after-hours trading on the
disappointing guidance. The stock, through the close, had been up
16% so far this year, better than the broader market.
For the fourth quarter, the company predicted adjusted earnings
of 16 cents to 18 cents a share on revenue of $37 million to $38.5
million. Analysts surveyed by Thomson Reuters were expecting 21
cents and $44 million, respectively.
The company has been eyed as a possible takeover target, as
large technology companies have been diversifying by buying up
Sourcefire's competitors. This summer, Intel Corp. (INTC) agreed to
buy McAfee Inc. (MFE) for $7.68 billion, and Hewlett-Packard Co.
(HPQ) agreed to buy security-software maker ArcSight Inc. (ARST)
for about $1.5 billion.
In the latest quarter, Sourcefire posted a profit of $4.2
million, or 15 cents a share, up from $2.7 million, or 9 cents a
share, a year earlier. Excluding stock-based compensation, earnings
rose to 18 cents from 10 cents.
Revenue jumped 32% to $36.2 million.
In July, the company projected adjusted earnings of 13 cents to
15 cents on revenue of $34.3 million to $35.8 million.
Gross margin rose to 79.4% from 77.9%.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com