Software

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Sourcefire Goes Public

03/09/07 - 01:52 PM EST

Priya Ganapati

Network security software company Sourcefire(FIRE - Cramer's Take - Stockpickr) debuted on Wall Street to an enthusiastic reception from investors who have seen scant offerings from IT security companies in the last three years.

Shares of Sourcefire opened at $15 and rose $1.05, or 7%, to $16.05. With an initial offering of 5.8 million shares, the company is looking to raise $74.2 million from its IPO.

"With an enterprise value to trailing revenue multiple of approximately 5.8 times, Sourcefire is trading above the average multiples for both large-cap and small-cap public security companies," says Charlie Rice, principal with boutique investment banking firm East Peak Advisors.

Rice estimates that most large-cap IT security companies have a trailing revenue multiple of just under five times, while small-cap players have multiples that hover around 3 times.

Sourcefire's market capitalization after debuting is estimated to be around $346 million.

What sets Sourcefire apart from larger rivals such as McAfee(MFE - Cramer's Take - Stockpickr) and even Cisco(CSCO - Cramer's Take - Stockpickr) is that it uses an open-source-based technology called Snort to detect and prevent intrusions on networks. Founded in 2001, Sourcefire had raised approximately $54 million in venture funding.

Before its IPO filing, the Columbia, Md.- based Sourcefire attempted to be acquired by Check Point Software(CHKP - Cramer's Take - Stockpickr). Check Point had offered to buy the company for $225 million but the deal fizzled out.

Previous «
1 2

Life & Money

Software

Go To Section Home


03/08/07
Microsoft Wins Patent Infringement Ruling

A court rules an Alcatel-Lucent patent was not misused.


03/08/07
Imergent's Wild Ride

Lawsuits and short-selling have meant volatility for this small-cap.


03/05/07
McAfee Names DeWalt CEO

He comes from an executive role at EMC.


08/05/08
Three Internet Stocks That Could Double

These forgotten Internet stocks are being accumulated by hedge funds.


08/15/08
The Five Dumbest Things on Wall Street

Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...


08/15/08
McCain Fund-Raising Picks Up

The GOP presidential candidate raised $27 million in July.


08/15/08
Cash-Back Cards Aren't Money in the Bank

Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now. See All

  • Cramer's Daily Booyah!
  • Before the Bell

Premium Stock Ideas