Security Software Gets Mind Share, but Not Sales

When thoughts turned to security after Sept. 11, it seemed only natural for investors, by extension, to home in on security software as a source of hope in the beleaguered tech sector.

To some degree, those investors have been rewarded, but not because of Sept. 11. The tragedy may have heightened security concerns, but some security software stocks already were enjoying a boost because of a rash of viruses. And although security moved up to the No. 1 priority for information-technology spending among chief investment officers, any gains in some security stocks have been driven by consumer demand rather than corporate spending, mirroring broader economic trends. Since Sept. 11, the sector has trailed behind a very weak broader market.

Within days of the World Trade Center attacks, the FBI-backed InfraGard Web site warned of increased cyberattacks, which could only be thwarted by tighter computer security. ...