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ArcSight, Inc. (NASDAQ: ARST) Trading at +22.15% After Reporting Promising 4th Quarter Results

|Includes: ArcSight (ARST)

ArcSight, Inc. (NASDAQ: ARST) is a global provider of security and compliance management solutions that protect businesses and government agencies. The company identifies, assesses, and mitigates both internal and external cyber threats and risks across the organization for activities associated with critical assets and processes. With the ArcSight SIEM platform, organizations can proactively safeguard their assets, comply with corporate and regulatory policy and control the risks associated with cyber theft, cyber warfare, and cyber espionage.

Yesterday, the company released its Fiscal 2010 4th Quarter results, reporting a 41% year-over-year quarterly growth for fiscal 4th quarter ended April 30, 2010.

Financial Highlights Include:


  1.           Total Revenue was $55.2 million, representing a 41% increase year-over-year.
  2.           Non-GAAP Operating Income was $10.9 million, a 73% increase from the same period in 2009.
  3.           Net income on a GAAP basis was $22.6 million, or $.62 per diluted share, compared to $4.3 million, or $.13 per diluted share, in the fiscal 2009 4th quarter.
  4.           The company generated $11.9 million in cash from operations and closed the 4th quarter with cash, cash equivalents, and short term investments of $149.4 million.

The 2010 4th quarter net income consisted of $222,000 in amortization of intangible assets, $3 million in stock-based compensation expense, and an $18.6 million income tax benefit resulting from the release of the company’s valuation allowance of its deferred tax assets. Today, the company is trading at $24.21, up 4.39 or 22.15%, due to this promising data.


“We are very pleased with our strong revenue and operating margin growth this past quarter, and look forward to continued success in fiscal 2011. Increased spending on cyber-security initiatives in the Federal sector, and anticipated enhancements to compliance mandates, should further fuel our long term growth,” commented Tom Reilly, president and CEO of ArcSight. “Our strong financial results, supported by increased market share and industry recognition, reflect the dedication, hard work and perseverance of our team executing on our strategic growth imperatives.”

To view this article at World Market Media click on the link below:

Disclosure: no positions