Cybersecurity solutions provider Sourcefire Inc. (FIRE) on Tuesday reported a loss for the first quarter as strong revenue growth was more than offset by higher operating expenses. Both revenue and adjusted earnings per share missed analysts' estimates.
Looking ahead, the company forecast results for the second quarter mostly below Street expectations. However, shares of the company gained almost 10 percent in extended trade.
John Becker, CEO of Sourcefire said, "Our threat-centric approach to cybersecurity that allows defenders to address the full attack continuum is in high demand, and we believe we are extremely well positioned to capitalize on the growth opportunity in front of us. Despite weakness in federal government spending, our total revenue increased 21% driven by ongoing strong performance from our International and U.S. Commercial businesses."
U.S commercial revenue for the quarter surged 40 percent to $29.2 million, while international revenue grew 32 percent to $20.7 million. Meanwhile, U.S. federal sector revenue declined 37 percent to $6.2 million.
Sourcefire's net loss for the first quarter was $26 thousand or breakeven per share, compared to net income of $67 thousand or breakeven per share last year.
Adjusted net income for the quarter was $3.40 million or $0.11 per share, same as last year. On average, analysts polled by Thomson Reuters expected the company to earn $0.12 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the first quarter grew 21 percent to $56.16 million from $46.30 million in the same period last year. Analysts had a consensus revenue estimate of $57.38 million.
Looking ahead to the second quarter, Sourcefire forecasts earnings results in a range of a loss of $0.02 to profit of $0.01 per share, adjusted earnings of $0.13 to $0.16 per share, and revenues in a range of $60.5 million to $63.5 million. Analysts currently expect the company to earn $0.19 per share for the quarter on revenues of $63.34 million.
FIRE closed Tuesday's regular session at $47.76, down $3.21 or 6.30 percent on a volume of 3.06 million shares. However, in after-hours, the stock gained $4.74 or 9.92 percent to $52.50.
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