Sourcefire Shines on Security Fears
COLUMBIA, Md. ( TheStreet) -- Sourcefire(FIRE) may not be as well known as Symantec(SYMC) or McAfee, now part of Intel(INTC) , but the security specialist has earned an impressive reputation among government organizations and businesses that need serious data lockdown.
Sourcefire briefly hit the headlines in 2006 when an attempt by Israeli firm Check Point (CHKP) to buy the company became a political issue. Sourcefire's Snort intrusion detection technology is widely used in the U.S. intelligence community, prompting Washington lawmakers to cite national security concerns about a possible Sourcefire sale.
|Shares of Sourcefire have climbed more than 47% this year.|
Six years later, and still a standalone company, Sourcefire has successfully extended its reach beyond its flagship Snort technology. Last month the company reported record fourth-quarter results as it reaps the benefits of a revamped product line.
"It's sort of a confluence of a few things coming together at the right time," said Sourcefire CEO John Burris, during a post-earnings interview with TheStreet. "We have become a multi-product company after a great run with an open-source product called Snort."
Burris pointed to the company's Next-Generation Firewall and its FireAMP anti-malware offering as evidence of its broadening product strategy.
"The traditional IPS (Intrusion Prevention System) market that we are playing in has been sized by the likes of Gartner to be a little over $2 billion by 2015," he said. "We're now going to be playing in a nearly $10 billion market."
One of the TheStreet's Breakout Stocks, Sourcefire recently hit a new 52-week high , and the company's shares have climbed more than 47% this year.
Bryan Ashenberg, TheStreet's Breakout Stocks Portfolio Manager, is bullish on Sourcefire, citing the business-critical nature of the company's products and the prioritized nature of security software spending.
Not that Burris is daunted. "We could really grow fast - we're small enough that we can creep up on guys," he told TheStreet. "There's so much consolidation in the industry, there's very few pure plays left that are maniacally focused on security, but we're one of them and that makes a big difference."
"This is actually a discipline that requires a lot of focus to do well," added Martin Roesch, the Sourcefire CTO. Intrusion Detection technology, he added, must be continually adjusted to deal with the latest network threats.
Sourcefire has also been aggressively growing its list of channel partners, which now number just under 600, up from 339 a year ago, and 177 at the beginning of 2010.