COLUMBIA, MD — (Marketwire) — 02/21/13 — Sourcefire, Inc. (NASDAQ: FIRE), a leader in intelligent solutions, today announced financial results for its fiscal fourth quarter and full year ended December 31, 2012.
“Sourcefire achieved record revenue for the fourth quarter and full year driven by strong global demand for our best in class solutions running on our FirePOWER platform and the successful execution of our expanded go-to-market strategy,” said Marty Roesch, interim CEO of Sourcefire. “Our threat-centric approach continues to be the key differentiator for Sourcefire, and our customers are making increasingly larger commitments to us to keep their extended networks safe.”
Total Revenue – Revenue for the fourth quarter of 2012 was $67.4 million compared to $53.2 million in the fourth quarter of 2011, an increase of 27%. Revenue for the year ended December 31, 2012 was $223.1 million compared to $165.6 million for 2011, an increase of 35%.
GAAP Net Income – Net income was $2.6 million for the fourth quarter of 2012, or $0.08 per diluted share, on the basis of generally accepted accounting principles (GAAP), compared with GAAP net income of $4.1 million, or $0.14 per diluted share, in the fourth quarter of 2011. GAAP net income for the year ended December 31, 2012 was $5.0 million, or $0.16 per diluted share, compared with GAAP net income of $6.2 million, or $0.21 per diluted share, for 2011.
Adjusted Net Income – Adjusted net income for the fourth quarter of 2012, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets and includes an assumed tax rate of 35%, was $8.9 million, or $0.29 per diluted share. This compares to adjusted net income of $7.6 million, or $0.25 per diluted share, in the fourth quarter of 2011, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets and other acquisition-related expenses and includes an assumed tax rate of 35%. Adjusted net income for the year ended December 31, 2012, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets and includes an assumed tax rate of 35%, was $24.9 million, or $0.81 per diluted share. This compares to adjusted net income for 2011, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets and other acquisition-related expenses, and includes an assumed tax rate of 35%, of $16.8 million, or $0.57 per diluted share.
Cash and Cash Flow – As of December 31, 2012, the Company-s cash, cash equivalents and investments totaled $204.0 million. Net cash provided by operating activities was $16.6 million in the fourth quarter of 2012 and $42.7 million for the full year 2012. The Company generated free cash flow of $13.8 million in the fourth quarter of 2012 and $33.8 million for the full year 2012.
Revenue Growth
Increased 2012 U.S. commercial revenue to $104.0 million, up 17% over 2011.
Increased 2012 international revenue to $74.4 million, up 77% over 2011.
Increased 2012 U.S. federal sector revenue to $44.7 million, up 28% over 2011.
Innovation & Recognition
Announced it has expanded its FirePOWER appliance family performance range with the addition of the 7000 series. The FirePOWER performance range is now from 50 Mbps to 40+ Gbps, the broadest in the industry.
Announced the new Advanced Malware Protection for FirePOWER, providing users with unmatched visibility and control of modern threats on the network — from point of entry, through propagation, to post-infection remediation.
Announced it has expanded its Advanced Malware Protection offerings to include new Incident Response Professional Services that assist customers in addressing advanced malware challenges. The services enable customers to clearly identify an event, evaluate the risk and determine the most effective approach to remediate. Experienced in incident response techniques, methodology and the actions of malicious code, the Sourcefire Incident Response Team helps customers eliminate uncertainty and make educated decisions for better protection — before, during and after an attack.
Based on information as of February 21, 2013, Sourcefire expects revenue for the first quarter of 2013 in the range of $56.0 million to $58.0 million, net income per diluted share in the range of $0.01 to $0.03 and, on an adjusted basis, net income per diluted share in the range of $0.11 to $0.13. Sourcefire-s expectation of adjusted net income per diluted share excludes stock-based compensation expense of $6.4 million to $6.6 million and amortization of acquired intangible assets of approximately $0.3 million and includes an assumed 35% tax rate.
To supplement its consolidated financial statements presented in accordance with GAAP, Sourcefire considers certain financial measures that are not prepared in accordance with GAAP, including non-GAAP adjusted net income, adjusted net income per share, adjusted income from operations, adjusted income from operations as a percentage of revenue and free cash flow.
Sourcefire uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate its operating and financial performance and to compare such performance to that of prior periods and to the performance of its competitors. The Company also uses these non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. Sourcefire believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors to evaluate the Company-s operating and financial performance and trends in its business, consistent with how management evaluates such performance and trends. The Company also believes these non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although Sourcefire-s non-GAAP financial measures are specific to it and the non-GAAP financial measures of other companies may not be calculated in the same manner.
Adjusted Net Income, Adjusted Net Income per Share, Adjusted Income from Operations and Adjusted Income from Operations as a Percentage of Revenue: In evaluating the operating performance of its business, Sourcefire excludes certain charges and credits that are required by GAAP. These non-GAAP measures exclude (i) stock-based compensation, which does not involve the expenditure of cash, (ii) amortization of acquisition-related intangible assets, which does not involve the expenditure of cash, and (iii) other acquisition-related expenses, which are unrelated to the ongoing operation of the Company-s business in the ordinary course. For 2012 non-GAAP results are adjusted to reflect the effect of an assumed tax rate of 35%. This adjustment is intended to normalize the tax rate and provide a tax rate that approximates the Company-s expected long-term GAAP tax rate.
Free Cash Flow: Sourcefire defines free cash flow as net cash provided by operating activities minus capital expenditures. The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the purchase of property and equipment, can be used for strategic opportunities, including investing in the business, making strategic acquisitions and strengthening the balance sheet.
These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.
On Thursday, February 21, 2013 at 5:00 p.m. Eastern Time, Sourcefire will host a conference call to review these results. A listen-only web cast of the session will be available at .
Those wishing to participate in the live session should use the following numbers to dial in:
Calling from the United States or Canada: 877-712-7037
Calling from other countries: 253-237-1122
Conference ID number: 86561838
An online replay will be available at following the completion of the live call and will remain available for at least 90 days.
Sourcefire, Inc. (NASDAQ: FIRE), a world leader in intelligent cybersecurity solutions, is transforming the way global large- to mid-size organizations and government agencies manage and minimize network security risks. With solutions from a next-generation network security platform to advanced malware protection, Sourcefire provides customers with Agile Security® that is as dynamic as the real world it protects and the attackers against which it defends. Trusted for more than 10 years, Sourcefire has been consistently recognized for its innovation and industry leadership with numerous patents, world-class research, and award-winning technology. Today, the name Sourcefire has grown synonymous with innovation, security intelligence and agile end-to-end security protection. For more information about Sourcefire, please visit .
Sourcefire, the Sourcefire logo, Snort, the Snort and Pig logo, Agile Security and the Agile Security logo, ClamAV, FireAMP, FirePOWER, FireSIGHT and certain other trademarks and logos are trademarks or registered trademarks of Sourcefire, Inc. in the United States and other countries. Other company, product and service names may be trademarks or service marks of others.
The statements contained in this release that are not historical facts are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. These statements include expectations regarding financial results for the first quarter of 2013.
Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of Sourcefire, Inc. may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors. These factors include, without limitation, the fact that the outlook for the first quarter of 2013 could change, and also include, without limitation, those risks and uncertainties described from time to time in the reports filed by Sourcefire, Inc. with the U.S. Securities and Exchange Commission. Sourcefire, Inc. undertakes no obligation to update any forward-looking statements.
Jennifer Leggio
Sourcefire
650-260-4025
Staci Mortenson
ICR
203-682-8273
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