Mixed financial fortunes in security market

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.

Security software vendors
Company   Activity   Period   Period end   Revenue ($m)   Rev change   Net inc ($m)   Prev net inc ($m)  
Check Point Software Tech Ltd Internet security s/w 3Q02 30-Sep 103.6 -12% 62.3 74.3
Entrust Technologies Inc Internet security s/w 3Q02 30-Sep 24.0 -14% -5.2 -8.3
Internet Security Systems Inc Intenet security s/w 3Q02 30-Sep 61.8 17% 6.3 -6.1
Network Associates Inc Computer security s/w 3Q02 30-Sep 232.2 13% 9.1 -11.3
RSA Security Inc Security s/w 3Q02 30-Sep 59.0 -6% -8.2 -15.5

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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