Thu, Jul. 23, 4:08 PM
Thu, Jul. 23, 11:27 AM
- As was the case 3 months ago, security tech plays are up strongly (HACK +3.6%) after Fortinet (FTNT +12%) beat estimates, reported strong billings, and delivered above-consensus top-line guidance. The Nasdaq is up 0.3%.
- In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Barracuda Networks (CUDA +6.4%), KEYW Holding (KEYW +4.5%), Symantec (SYMC +1.9%), Imperva (IMPV +7.6%), Proofpoint (PFPT +3.6%), Vasco (VDSI +4.5%), AVG (AVG +3.1%), and Qualys (QLYS +5.7%). AVG is benefiting a bullish JPMorgan coverage launch; Proofpoint reports after the close.
- JPMorgan's Sterling Auty has upgraded Fortinet to Overweight, and a slew of firms have hiked their targets. Auty argues Fortinet's numbers suggest its efforts to grow its high-end presence (aided by major sales investments in recent years), and forecasts free cash flow will rise 43% this year.
- On Fortinet's earnings call (transcript), CFO Drew Del Matto mentioned $100K+ deals rose 53% Y/Y and $1M+ deal 133% (compares with 40% total billings growth). He also mentioned the company's high-end FortiGate UTM/next-gen firewall appliances made up 45% of billings (a new high), and that U.S. enterprise sales (benefiting from strong cybersecurity spend) rose 90%. Major deals were struck with "two of the most recognizable technology brands in the world," as well as two large i-banks.
Wed, Jul. 22, 5:35 PM
- ABAX, ACTG, ALGN, ALTR, AMZN, ATHN, BCR, BJRI, BLDR, BYD, CA, CB, CBI, CHE, CLGX, CLS, COF, CPHD, CTCT, CYN, DGII, ETFC, FET, FII, FLEX, FSL, GHL, GIMO, HBHC, HWAY, IG, JNPR, LOGM, LSTR, MITK, MKTO, MSCC, MXIM, N, NANO, NTGR, P, PEB, PFG, PFPT, PMCS, QLIK, RGA, RHI, RSG, RT, SBUX, SIVB, SPNC, SRCL, STAG, SWKS, SYK, T, TRIP, TRN, UIS, V, VRSN, WIRE, WRE
Thu, Jul. 9, 2:26 PM
- Security tech plays are outperforming amid a 0.4% gain for the Nasdaq. The rally comes a day after the NYSE suffered a lengthy outage, United Airlines grounded flights, and the WSJ's site briefly went down.
- All three incidents have been blamed on tech issues rather than attacks/breaches, but questions linger. FBI director James Comey: "We do not see any indication of a cyber breach or cyber attack ... But again, in my business, you don't love coincidences." Ex-White House cybersecurity advisor Richard Clarke: "Right now, anybody who says they know for sure what happened before the forensic work has been done is kidding themselves."
- Also: In a bit of good PR/convenient timing for the group, representatives from the PureFunds Cyber Security ETF (HACK +1.6%) rang the NYSE's opening bell today. The NYSE says the event was booked months in advance.
- Standouts include CyberArk (CYBR +4%), FireEye (FEYE +2.7%), KEYW Holding (KEYW +5%), Fortinet (FTNT +2.4%), Check Point (CHKP +2.6%), Imperva (IMPV +2.9%), Zix (ZIXI +2.8%), Proofpoint (PFPT +2.7%), and Vasco (VDSI +2.5%). Barracuda (CUDA +2%) reports after the bell.
Wed, Jun. 24, 11:54 AM
- Baird has downgraded Fortinet in response to a healthy 2015 run-up, and many security tech peers have joined the company in seeing profit-taking (HACK -1.3%). The Nasdaq is down just 0.1%.
- Decliners include FireEye (FEYE -2.3%), Qualys (QLYS -6.7%), KEYW (KEYW -5.1%), Check Point (CHKP -1.9%), Barracuda (CUDA -2.5%), Vasco (VDSI -2.5%), and Proofpoint (PFPT -1.8%). UBS downgraded FireEye to Neutral two days ago while citing valuation, and also cut Symantec to Sell. RBC has hiked its Qualys target by $6 to $44 today, while reiterating a Sector Perform.
- The selloff comes as an Office of Personnel Management (OPM) official states up to 18M Social Security numbers may have been stolen in a recent breach. FireEye recently ID'd a Chinese group it believes was responsible for the hack.
- Meanwhile, the WSJ has published a column about Check Point's efforts to expand beyond its core firewall market, and thereby keep the likes of Fortinet and Palo Alto Networks at bay. Gartner estimates Check Point had a 22.7% 2014 firewall share, well above #2 Cisco's (NASDAQ:CSCO) 15.9% but down from a 2013 share of 24%.
Mon, Jun. 15, 3:42 PM
- Though the Nasdaq is down 0.4%, security tech plays CyberArk (CYBR +7%), FireEye (FEYE +2.6%), Proofpoint (PFPT +4.1%), Zix (ZIXI +2.8%), Vasco (VDSI +5.7%), and Qualys (QLYS +4.7%) are turning in strong days. All of the names except for Proofpoint and Qualys have made new 52-week highs ... and Proofpoint is less than a dollar away from doing so.
- No major news is propelling the gains, but the massive federal personnel records hack first disclosed on June 4 continues to get plenty of media and political attention. Meanwhile, Russia's Kaspersky Lab has reported hackers used an updated version of the Duqu virus (linked to Israel) and a digital certificate from contract manufacturer Foxconn to spy on Iranian nuclear talks.
- ETF: HACK
Fri, Jun. 12, 9:17 AM
- Proofpoint (NASDAQ:PFPT) has hiked the size of its offering of convertible senior notes due 2020 (first announced Wednesday afternoon) by $50M to $200M. The notes carry an interest rate of 0.75%, and a conversion price of $81.23 (33% above current levels).
- Net proceeds are expected to total $194.2M, or $223.4M if a $30M overallotment option is fully used.
- Shares have risen to $61.50 premarket. The high (set on Monday) is $64.00.
Fri, Jun. 12, 2:36 AM
- New information reveals that more personnel records were hacked than previously reported during the federal cyber theft in December.
- Already considered one of the largest thefts of U.S. government personnel data in history, investigators now estimate that it may include data on as many as 14M people, more than triple the 4M current and former government employees reported by the Office of Personnel Management last week.
- U.S. officials are now weighing responses ranging from counterintelligence initiatives to destroying the data in the intruders' servers.
- Previously: FBI probing major federal breach; FEYE, PANW, CYBR higher (Jun. 04 2015)
- Related tickers: KEYW, CUDA, PFPT, FEYE, PANW, QLYS, CYBR, HACK
Wed, Jun. 10, 4:46 PM
- Proofpoint (NASDAQ:PFPT) plans to sell $150M worth of convertible senior notes due June 2020. Initial purchasers are expected to have a $22.5M overallotment option.
- Net proceeds are expected to go towards "general corporate purposes, including potential acquisitions and strategic transactions." Proofpoint is 3 months removed from striking a $40M deal to buy malware threat-intelligence service provider Emerging Threats, and has suggested it's open to additional small acquisitions.
- PFPT -1.5% AH to $60.24. Proofpoint had $193.5M in cash at the end of Q1, and $163.9M in convertible debt.
Fri, Jun. 5, 12:56 PM
- The PureFunds ISE Cyber Security ETF (HACK +2.2%) has made fresh highs after government officials disclosed a hack of the federal Office of Personnel Management (OPM) that resulted in the personal records of as many as 4M current and former federal workers being stolen. The Chinese hackers who carried out for a recent attack on health insurance firms Anthem and Premera Blue Cross are believed to be responsible.
- In addition to FireEye, Palo Alto Networks, and CyberArk (previously covered), gainers include Imperva (IMPV +3.7%), KEYW Holding (KEYW +7.5%), Fortinet (FTNT +2.3%), Proofpoint (PFPT +4.3%), Vasco (VDSI +3%), and Identiv (INVE +2.8%). Fortinet, Proofpoint, and Imperva have made new highs. The Nasdaq is close to breakeven.
- The group also rallied on Wednesday, a day after the IRS promised to upgrade its security systems during Senate hearings about a recent breach. Proofpoint is a day removed from announcing a refresh (version 3.0) of its threat-response/intelligence software platform. New features include better cloud-based threat intelligence tools and security alert integration for 3rd-party software tools.
Wed, Jun. 3, 6:39 PM
- The PureFunds ISE Cyber Security ETF (NYSEARCA:HACK) rose 2.5% today to $31.13, making new highs in the process. The media attention given to a Tuesday Senate hearing about a recent IRS breach, along with the IRS' promise to upgrade its security systems in response, may have helped.
- Major security tech gainers included KEYW Holding (KEYW +7.6%) and Vasco (VDSI +5.4%), each of whom have healthy government exposure. Others included Qualys (QLYS +3.8%), AVG (AVG +3.5%), Imperva (IMPV +3.3%), and Proofpoint (PFPT +2.9%).
- After the bell, FireEye announced a partnership with Visa to provide a joint threat-intelligence service to Visa merchants and card issuers.
Tue, May 5, 10:32 AM
- Though Qualys (QLYS -28.8%) beat Q1 EPS estimates and only slightly missed on revenue, it's guiding for Q2 revenue of $39.5M-$40M and EPS of $0.09-$0.11, below a consensus of $40.7M and $0.13. Full-year guidance is for revenue of $165M-$166.5M and EPS of $0.50-$0.55 vs. a consensus of $168.4M and $0.53.
- Security tech peers are underperforming (HACK -2.9%) amid a 0.8% drop for the Nasdaq. Decliners include CyberArk (CYBR -3.6%), FireEye (FEYE -2.5%), Palo Alto Networks (PANW -2.9%), Proofpoint (PFPT -3.8%), and AVG (AVG -2.3%).
- Discussing its light full-year outlook, Qualys says it now expects "a lower growth rate for our Vulnerability Management business than we did at the beginning of 2015" The growth rate for other products is said to be unchanged.
- On the CC (transcript), Qualys noted Vulnerability Management (provides cloud-based tools for detecting and fixing IT vulnerabilities) still accounts for nearly 80% of revenue, and that business' Y/Y sales growth slipped to 19% in Q1 from 20% in Q4 thanks to "the timing of a few large enterprise deals." With shares up over 3x from their 52-week lows going into earnings, there was little margin for error.
- Baird has gone contrarian and upgraded Qualys to Outperform following the rout. Baird, which maintains a $50 target, sees new products/services will boost growth. Qualys launched a cloud-based IT asset monitoring service last month, as well as a service for securing Web apps.
- FireEye and CyberArk are giving back some of the big Friday gains seen following FireEye's Q1 beat and full-year guidance hike.
Wed, Apr. 22, 12:56 AM
- Proofpoint (NASDAQ:PFPT) is guiding for Q2 revenue of $60M-$61M and full-year revenue of $250M-$252M, above consensus estimates of $59.8M and $248.5M, and Q2 EPS guidance is at -$0.09 to -$0.10 and full-year guidance at -$0.37 to -$0.40, mostly below consensus estimates of -$0.09 and -$0.34.
- Heavy spending continues to pressure EPS: GAAP operating expenses rose 39% Y/Y in Q1 to $56M. As is the case for many growth-stage enterprise tech companies, sales/marketing spend (+44% to $32.9M) is aggressive.
- On the bright side, Q1 billings totaled $66.4M, +42% Y/Y, well above revenue of $57.8M, and topping guidance of $61M-$63M. Q2 billings guidance (possibly conservative) is at $65M-$67M; full-year billings guidance has been hiked by $4M to $292M-$296M. Full-year free cash flow guidance remains at $20M-$25M.
- On the CC (transcript), CEO Gary Steele stated sales of Proofpoint's cloud-based Targeted Attack Protection (TAP) software rose over 100% Y/Y thanks to strong corporate interest in malware-protection offerings following high-profile hacks. Strong demand was also reported for Proofpoint's Threat Response software.
- Shares fell to $56.95 in AH trading.
- Q1 results, PR
Tue, Apr. 21, 4:11 PM
Tue, Apr. 21, 1:35 PM
- Security tech firms are rallying once again (HACK +2.3%) after unified threat management (UTM) hardware leader Fortinet (FTNT +9.6%) beat Q1 estimates on the back of 36% Y/Y billings growth, and provided strong Q2 and full-year sales/billings guidance. At least 8 firms have hiked their Fortinet targets in response to the numbers, which followed a Q1 beat and in-line guidance from firewall vendor Check Point.
- In addition to FireEye, which announced an HP partnership this morning (follows a Check Point partnership), gainers include Palo Alto Networks (PANW +4.8%), CyberArk (CYBR +5.1%), Barracuda Networks (CUDA +5.1%), Qualys (QLYS +4.7%), Imperva (IMPV +2.2%), Proofpoint (PFPT +2.6%), and Zix (ZIXI +3.5%). Proofpoint and Zix report after the close, Barracuda on April 27, Qualys and Imperva on May 5, and CyberArk on May 7.
- "Fortinet is ... benefiting from a favorable security environment and increasing opportunity to sell to organizations that are building a multilayered approach to security," observes William Blair in remarks that also have implications for peers. "U.S. enterprise growth was 70% year-over-year with the company adding a total of 8,000 new customers, suggesting increasing traction." FBR (a long-time security tech bull) sees profit growth (currently pressured by heavy spending) improving as sales/marketing investments pay off.
- On the CC (transcript), CEO Ken Xie asserted Fortinet's ability to offer an integrated security platform covering "internal, data center, perimeter, and endpoint security plus advanced threat protection" was a differentiator. CFO Andrew Del Matto claimed FortiGate UTM/next-gen firewall appliance deals were over Palo Alto, Check Point, Cisco, and Juniper; those companies, of course, might claim wins of their own.
Mon, Apr. 20, 5:35 PM
PFPT vs. ETF Alternatives
Other News & PR