Story updated with additional information on rumored ArcSight meeting with employees.
CUPERTINO, Calif. (
Acquisition rumors continued to swirl around ArcSight(ARST) on Thursday
, a week after a news report
first surfaced saying the company is on the auction block.
An industry source told
that the company is holding an "all-hands-on-deck" meeting with employees today, prompting
that this could be related to potential M&A. Subequently, the source added that the meeting may now be pushed out until Friday. ArcSight,
which reports its first-quarter results after market close
, has yet to respond to
request for comment.
Last week the
Wall Street Journal
reported that ArcSight has put itself in the shop window. Citing people familiar with the matter, the Journal said that potential buyers, including
(ORCL - Get Report)
(HPQ - Get Report)
could pay up to $1.5 billion for the company.
(EMC - Get Report)
(IBM - Get Report)
(CA - Get Report)
are also possible purchasers, the
ArcSight shares surged on the speculation, hitting a new 52-week high of $39.74 on August 27. The
report, which theorized a deal could happen in the next couple of weeks, said ArcSight expects to fetch $40 a share.
top security stocks for 2010
ArcSight makes security management and compliance software, and was recently
cited as one of the sector's most attractive acquisition targets
'Breakout Stocks' portfolio has described ArcSight as "one of the most compelling secular growth stories in the market."
only went public in 2008
, but has already made a big name for itself, putting out consistently impressive quarterly numbers.
The company's CEO Tom Reilly recently
that ArcSight is also on track to reach its target of 18% to 20% operating margin in fiscal 2012.
The software maker
has been getting plenty of love on Wall Street
and analysts expect the company to post first-quarter revenue of $45.53 million and earnings of 13 cents a share. ArcSight reported sales of $34.6 million and earnings of 9 cents a share in the same period last year.
ArcSight's stock rose 64 cents, or 1.69%, to $38.47 in Thursday afternoon trading, outpacing the broader advance in tech stocks that saw the Nasdaq rise 0.45%.
Written by James Rogers in New York.
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