Tech Security's Leaders Looking Strong

Recent warnings from tech security companies Websense(WBSN) and ActivIdentity(ACTI) have stirred worries in the sector, but a general slowdown in spending by businesses doesn't seem at hand.

Companies are continuing to buy core products such as antivirus software and newer technologies such as encryption and data leak prevention, say analysts.

Websense said Thursday it expects third-quarter revenue of $50.4 million, net of about $950,000 in joint marketing. Analysts polled by Thomson Financial are expecting revenue of $50.8 million.

The company's $52.2 million in billings also was below guidance, and the company said it saw weakness in its North American enterprise renewals business.

Websense closed Thursday off about 7%; the stock was gaining 1.4% in recent Friday trading to $20.34.

Websense's peer, ActivIdentity, which offers digital identity products, also cut its outlook after several large orders slipped from the fourth quarter to the first quarter.

Shares of ActivIdentity fell more than 7% Thursday and were off another 1% Friday to $4.52.

But the smaller companies' problems are unlikely to have any impact on the larger security players such as McAfee(MFE), Symantec(SYMC), or Check Point(CHKP). That's because these big players have recently changed their product mix and have introduced new suites that are likely to capture areas where security dollars are flowing, say analysts.