Downgrade Debate at Internet Security

"The more relevant point, which he doesn't make in his report but is very, very clear, is the traditional legacy security companies ... have realized the inadequacies of that technology and they're desperately trying to acquire start-up companies ... because the intrusion prevention is the future of security, and we invented it," Noonan said.

But Weinfeld said his firm's proprietary survey of 50 ISSX users found that more than 34% of customers are currently highly dissatisfied or will remove ISSX software. Among the complaints: an inability to use ISSX software with other products and unhelpful tech support. "Especially damning to ISSX's industry standing was the fact that its product failed to detect Code Red," Weinfeld added, referring to the disruptive worm that hit in 2001. In a phone interview, he said at least one customer in the survey reported such an experience with Code Red.

Noonan also rebutted those charges, saying his company's technology detected and prevented Code Red before the attack occurred. ISSX was part of a consortium of companies and government groups that issued a public warning on Code Red in July 2001.

Noonan said ISSX is trying to get a copy of Weinfeld's survey and noted that the analyst has never talked to any officials at ISSX. He also cast doubt on the survey by noting that his company spends an entire quarter trying to reach 30 to 40 customers for its own internal surveys.

"I have no idea what the motive is for this report, but it is littered with inaccuracies," Noonan said. "There are no facts to support them."

But in a telephone interview Weinfeld stuck by his report and insisted he has tried contacting the company's chief financial officer, only to be told by a secretary that he won't speak with Weinfeld. In addition, he said he has never been able to ask a question on the company's earnings calls.

"We're standing by what we said in January, throughout the year and today," he said.