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
