Needham & Company Reiterates a 'Buy' on Sourcefire (FIRE); Solid SeptQ and Guidance
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Price: $75.96 --0%
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Sourcefire (NASDAQ: FIRE) price target of $32.00.
Needham analyst says, "The Sourcefire performance in SeptQ was better than expected, and recent color on federal spending gave us confidence results would be solid. The big driver of revenues was government, at $15.9m (35% of total revs, up from 16% q/q). For the second quarter in a row, we saw balanced strength across FIRE, including federal government, “commercial” business (18.8m, or +25% y/y) and International business (10.5m, or +41% y/y). It is our belief the efforts FIRE has been making in building out the channel and field organization have begun to pay-off, with solid JuneQ and SeptQ balanced quarterly results. Another key metric is “almost 50%” of new license from new customers in the quarter, signaling FIRE didn’t just “mine” its installed base of government relationships for a strong quarter. New product update on the “next generation firewall” is still “on track” for December release, though we do not believe there is much revenue in the near-term plan, nor our estimates."
"The DecQ guidance of $45.5-47.5m and $0.18-0.20 EPS vs. $46m and $0.20 EPS consensus. We believe this is solid guidance, considering the macro climate; the moderate EPS is acceptable, given FIRE has been an “investment” story for several quarters. We are leaving our CY12 revenue unchanged at $191m, and trimming EPS from $0.75 down to $0.64 on continued sales and field org build-out."
For more ratings news on Sourcefire click here and for the rating history of Sourcefire click here.
Shares of Sourcefire closed at $27.02 yesterday.
Needham analyst says, "The Sourcefire performance in SeptQ was better than expected, and recent color on federal spending gave us confidence results would be solid. The big driver of revenues was government, at $15.9m (35% of total revs, up from 16% q/q). For the second quarter in a row, we saw balanced strength across FIRE, including federal government, “commercial” business (18.8m, or +25% y/y) and International business (10.5m, or +41% y/y). It is our belief the efforts FIRE has been making in building out the channel and field organization have begun to pay-off, with solid JuneQ and SeptQ balanced quarterly results. Another key metric is “almost 50%” of new license from new customers in the quarter, signaling FIRE didn’t just “mine” its installed base of government relationships for a strong quarter. New product update on the “next generation firewall” is still “on track” for December release, though we do not believe there is much revenue in the near-term plan, nor our estimates."
"The DecQ guidance of $45.5-47.5m and $0.18-0.20 EPS vs. $46m and $0.20 EPS consensus. We believe this is solid guidance, considering the macro climate; the moderate EPS is acceptable, given FIRE has been an “investment” story for several quarters. We are leaving our CY12 revenue unchanged at $191m, and trimming EPS from $0.75 down to $0.64 on continued sales and field org build-out."
For more ratings news on Sourcefire click here and for the rating history of Sourcefire click here.
Shares of Sourcefire closed at $27.02 yesterday.
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