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'Mad Money' Spotlight: Cramer on ArcSight

With cybersecurity the cause de' jeur lately, Cramer pointed to tech spec ArcSight as a possible play.
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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



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


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software throughout ESM products.

In public documents, ArcSight also cites




as private companies in competition with ESM. Others include

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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.

ArcSight has $91 million in cash and no debt. According to Cramer, the company charges $300,000 for platforms, but also follows up with maintenance services and technical support that add more charges on top. Public documents show that the company houses three major support centers in Cupertino, London and Hong Kong.

But it is a tech spec, after all. So, Cramer said to watch out and do your homework since the company is trading at 33 times earnings.

Shares were up 3.3%, or 53 cents, at $16.75 just after the opening bell.

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