Proofpoint - The Proof Is Lacking In The Pudding
Market Mirage • 12 Comments
Market Mirage • 12 Comments
Proofpoint: One Of My Favorite Shorts
Amit Ghate • 10 Comments
Amit Ghate • 10 Comments
Wed, Jan. 13, 2:27 PM
- On a day the Nasdaq is down 2.8%, Proofpoint (PFPT +0.9%) and Rapid7 (RPD +1.9%) have managed to stay green following a report stating security software peer CyberArk (up 20.5%) is in preliminary talks to be acquired by Check Point.
- FBR recently argued Symantec could make a bid for Proofpoint. Prrofpoint's Q4 report arrives on Jan. 28, and Rapid7's on Feb. 10.
Dec. 31, 2015, 7:03 PM
- Cisco (NASDAQ:CSCO) could make a bid for storage array vendor NetApp (NASDAQ:NTAP) and threat-prevention hardware/software provider FireEye (NASDAQ:FEYE) in 2016, thinks FBR's Dan Ives. Cisco/NetApp speculation has been around for a while. Meanwhile, Cisco has made several security acquisitions in recent years, and appears to be up for more, but has also launched products that compete with FireEye.
- Ives also thinks IBM could bid for machine/log data analytics software leader Splunk (NASDAQ:SPLK) and business intelligence/data visualization software firm QLIK. With a $7.6B market cap and high multiples, Splunk would be a costlier acquisition than IBM's traditional fare.
- HP Enterprise (NYSE:HPE), meanwhile, is seen as a potential suitor for both Qlik and enterprise cloud storage/file-sharing leader BOX. And Oracle (NYSE:ORCL) a potential buyer of cloud ERP, HR, and e-commerce software firm NetSuite (NYSE:N). Larry Ellison owns a large stake in NetSuite (more SMB-focused than Oracle), and the company both competes and partners with Oracle.
- Microsoft (NASDAQ:MSFT), which has made plenty of acquisitions in the Satya Nadella era, is seen as a potential buyer of database security software and Web app firewall vendor Imperva (NYSE:IMPV), as well as of cloud vulnerability management and compliance software firm Qualys (NASDAQ:QLYS). Symantec (NASDAQ:SYMC), which has signaled it will make security acquisitions after the sale of its Veritas unit closes, is considered a possible acquirer of e-mail/compliance security software provider Proofpoint (NASDAQ:PFPT).
- Yesterday: FBR sees improving cybersecurity spend, likes several stocks
Oct. 21, 2015, 12:34 PM
- Several security tech plays, including ones that were tech sector darlings earlier this year as a torrent of hacking incidents led corporate cybersecurity spend to jump, are selling off on a quiet day for equities.
- Major decliners include Palo Alto Networks (PANW -4%), FireEye (FEYE -4.9%), Fortinet (FTNT -4.3%), CyberArk (CYBR -4.8%), Imperva (IMPV -5.3%), Proofpoint (PFPT -3.9%), Qualys (QLYS -2.8%), and Rapid7 (RPD -6.8%).
- No major news has arrived to trigger a selloff. Meanwhile, hacking-related stories have continued producing ink in recent weeks. Notable ones: China is reportedly continuing hacking attacks on U.S. firms in spite of a pact that banned government spying on companies; authorities are probing a potential Russian hack of Dow Jones; and ISIS has reportedly tried (without much success) to hack the U.S. electrical grid.
- The PureFunds ISE Cyber Security ETF (HACK -1.6%) is down 24% from a June peak of $33.91. YTD, it's only down modestly.
- Proofpoint reports earnings after the close, and Fortinet tomorrow afternoon. Qualys reports on Nov. 2, FireEye on Nov. 4,, CyberArk on Nov. 5,, and Rapid7 on Nov. 12,
- Update: One potential culprit: Server virtualization software leader VMware is cratering due to its soft Q4/2016 guidance (partly blamed on cloud adoption). A smattering of other high-beta enterprise tech names are also selling off.
May 20, 2014, 2:04 PM
- Proofpoint (PFPT +1.3%) is buying NetCitadel, a developer of incident-response software, for $24M in cash. The deal isn't expected to have a "material impact" on 2014 revenue of profits.
- Proofpoint asserts NetCitadel's products strengthen its existing threat-protection offerings, in part by "unifying, correlating and synthesizing security alerts from Proofpoint and other leading security vendors such as HP ArcSight, Palo Alto Networks and FireEye," and thereby significantly cutting response times.
- The deal is the latest in a flurry of M&A activity in the threat-prevention/incident-response space, as security vendors try to cater to growing corporate interest in cybersecurity solutions that mesh on-premise hardware/software with cloud-based services.
- FireEye bought leading endpoint security/incident-response firm Mandiant in January, and Palo Alto responded by acquiring cybersecurity startup Cyvera.
Mar. 24, 2014, 6:25 PM
- Though Palo Alto Networks' (PANW -4.3%) $200M acquisition of endpoint security startup Cyvera might lower its 2014 EPS by 10% and 2015 EPS by 20%, it also stands to increase the company's addressable market by a quarter to ~$20B, thinks FBN's Shelby Seyrafi.
- "We view this acquisition as a logical expansion of the company’s end market that enhances its ability to provide end-to-end threat protection," says Baird's Jayson Noland. He notes Palo Alto's management plans to create an "overlay sales force" to sell endpoint security solutions.
- FBR's Daniel Ives sees the deal, the latest in a string of high-profile security acquisitions (I, II), as part of a "massive consolidation in the security landscape" set for 2014. He thinks Fortinet (FTNT), Proofpoint (PFPT), and Imperva (IMPV) could be among the companies snapped up this year by larger tech firms.
Jan. 3, 2014, 10:39 AM
- Several security hardware and software vendors are trading higher in response to FireEye's $1B+ acquisition of cybersecurity software/services firm Mandiant, and perhaps also FireEye's Q4 guidance hike. The acquisition, which comes six months after Cisco agreed to buy top intrustion prevention system vendor Sourcefire for $2.7B, is fueling hopes the industry will see additional M&A.
- KEYW (KEYW +9.9%), a cybersecurity software/services provider for defense and security agencies, is the biggest gainer. Other winners include Palo Alto Networks (PANW +3.6%), Barracuda (CUDA +3.2%), Imperva (IMPV +2.4%), Proofpoint (PFPT +5.3%), and Qualys (QLYS +2.3%).
Oct. 1, 2013, 4:20 PM
- Proofpoint (PFPT -0.4%) acquires enterprise messaging/security provider Sendmail for $23M in cash. Proofpoint believes it can generate subscription revenue from the proprietary Sentrion package while continuing to support open source distribution of other Sendmail platforms.
- The company expects the acquisition to have an immaterial impact on revenue in Q4 and widen net loss by $2M, or $0.06/share. For 2014, the company expects Sendmail to contribute $5M in revenue (half from legacy maintenance contracts and half from new sales of Proofpoint solutions to these customers) and a $3M increase in net loss, or $0.08/share, partially mitigated by accretion.
Sep. 6, 2013, 10:56 AM
- Proofpoint (PFPT -2.5%) completes the $25M acquisition of SaaS anti-malware provider Armorize.
- Armorize's real-time threat intelligence will supplement Proofpoint's cloud-based Targeted Attack Protection product, which focuses on email-based malware.