This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Blue Coat CEO: We're Not For Sale

SUNNYVALE, Calif. ( TheStreet) -- Despite plenty of M&A chatter, security and networking specialist Blue Coat Systems (BCSI) is not on the block, according to the company's new CEO.

"I came to this company to grow it, double its revenue and stay independent," Mike Borman, the Blue Coat CEO, told TheStreet. "My job is to build this company to a billion-dollar company, and that's what we're working on."
Mike Borman, CEO Blue Coat Systems

Blue Coat, which builds hardware and software for securing Web communications and delivering enterprise applications over wide area networks (WANs), has been thrust into the spotlight in recent weeks.

The Silicon Valley firm is one of a number of security companies like Check Point (CHKP) and ArcSight (ARST) that have been touted as potential acquisition bait in the aftermath of Intel's (INTC - Get Report) $7.7 billion McAfee (MFE) deal.

With investors eagerly watching to see whether tech heavyweights such as IBM (IBM) and Dell (DELL) open their wallets, there has been speculation that Blue Coat and rival Websense (WBSN) could make attractive targets.

Borman, who took over from Brian NeSmith as Blue Coat CEO earlier this month, clearly has other plans. The Blue Coat supremo would not give a time frame for reaching the billion-dollar revenue mark, but he did say that shareholders can expect a boost -- eventually. "Doubling the company's revenue would drive the stock more than double," he said.

Recent weeks have been something of a rollercoaster for Blue Coat investors. The stock took a pounding when the company put out mixed first-quarter results last month, but regained ground when former IBM (IBM) software executive Borman was names as CEO on Sep.1. Currently trading around $21, the firm's stock is down 55 cents, or 2.55% this year.

Blue Coat sells its products into 83% of Fortune's 500 and counts British Telecom (BT), Merck (MRK) and the NFL's Green Bay Packers as customers, but Borman says there is still plenty of work to do.

"There was some [first-quarter] revenue growth, but it probably wasn't as much as analysts would have liked or the company would have liked," he explained. "My instincts tell me that, in both the WAN optimization and the security space, we have additional opportunities to improve our go-to-market effectiveness."

The CEO, who was previously at the helm of data center specialist Avocent, said that he plans to breathe new life into both Blue Coat's direct sales and its channel.

"We have the capability out there, we just need to get it more pervasive, more skilled and more energized," he explained. More specifically, Borman is focusing on the company's WAN optimization brand image and marketing, as well as Blue Coat's European business. "My sense is that we will need to improve our overall go-to-market over there," he added.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INTC $30.05 0.50%
AAPL $92.69 -0.59%
FB $119.49 1.40%
GOOG $711.11 1.40%
TSLA $214.84 1.60%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs