Security systems may still be high on IT managers’ lists of purchasing priorities, but this did not prevent a mixed bag of financial results from some of the leaders in the sector in their latest financial quarters.
Among the strongest performers was intrusion detection specialist Internet Security Systems, where revenues increased by 17% in the third quarter of its financial year, compared with the corresponding quarter in 2001. The company also posted a profit of $6.3 million, roughly equal to its net loss of $6.1 million in the year-ago period. CEO Tom Noonan attributed the company’s success to high demand for managed security services – a fast growing market.
Firewall pioneer and market leader Check Point Software, however, did not fare so well in its third quarter. Executives point to a slide in the number of large organisations willing to sign major deals for a 12% decrease in revenue over the same period last year. But having inked a number of “strategic deals” during the current quarter – including a $5 million contract to supply network security to US investment bank Merrill Lynch – its fortunes may improve towards the end of the year.