'Mad Money' Spotlight: Cramer on ArcSight

As news heated up last week about cyberattacks involving government and financial institutions around the world -- including the New York Stock Exchange -- Jim Cramer thought it was time to take a closer look at a well-positioned tech spec.

On Friday's "Mad Money," Cramer highlighted ArcSight(ARST Quote) as one to watch in the cybersecurity sphere. With a market cap around $500 million, the company makes applications to help governments and companies with both IT security needs and regulatory compliance issues.

Originally founded in 2001, the company's main revenue generator is the ArcSight ESM platform. First released in 2002, ESM is a suite of software products that sweep the entire organizational structure of a system looking for irregularities and suspicious activity. The company also provides packages that include software to help keep in compliance with Sarbanes-Oxley and the Federal Information Security Management Act, among others.

According to ArcSight's 10-K, the company has a licensing deal that allows ArcSight to embed Oracle(ORCL Quote) software throughout ESM products.

In public documents, ArcSight also cites Inellitactics and netForensics as private companies in competition with ESM. Others include CA(CA Quote), Cisco(CSCO Quote), EMC(EMC Quote), IBM(IBM Quote), Novell(NOVL Quote) and Symantec(SYMC Quote).

Back in June, the Cupertino-based concern reported total revenue grew to $39.3 million during the previous quarter, representing a 34% jump from the year-ago period, with non-GAAP earnings coming to 18 cent per share. For the first quarter, the company gave guidance expecting revenues to range between $31 million to $34 million, with EPS to land between 3 cents and 8 cents.