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Sourcefire Inc. (FIRE)
Q3 2012 Earnings Conference Call
November 1, 2012, 08:30 AM ET
Staci Strauss Mortenson – Senior Vice President, ICR
Martin F. Roesch – Chief Technology Officer & Interim CEO
Todd P. Headley – Chief Financial Officer
Tom M. McDonough – President & Chief Operating Officer
Jonathan Ho - William Blair
Joel Fishbein - Lazard Capital Markets
Jonathan Ruykhaver of Stephens, Inc
Brent Thill – Analyst, UBS Securities
Rob D. Owens – Pacific Crest Securities
Scott Zeller – Needham & Co.
Walter H. Pritchard – Citigroup Global Markets
Shebly Seyrafi – FBN Securities
Fatima Boolani – Jefferies
Previous Statements by FIRE
» Sourcefire's Management Present at Citi Technology Conference (Transcript)
» Sourcefire's CEO Discusses Q2 2012 Results - Earnings Call Transcript
» Sourcefire Inc. Q2 2009 Earnings Call Transcript
I would now like to turn the conference over to your host Staci Mortenson. Ma’am you may begin.
Staci Strauss Mortenson
Thank you. This is Staci Mortenson, Sourcefire’s investor relations representative. I want to thank you for joining our third quarter 2012 earnings conference call. Joining me today on the call is Marty Roesch, Interim Chief Executive Officer; Todd Headley, Chief Financial Officer; and Tom McDonough, Chief Operating Officer. Before we begin, I must remind you that statements made in this conference call and in our public filings, releases and websites, which are not historical facts may be considered to be forward-looking statements that involve risks and uncertainties and are subject to change at any time. We caution investors that any forward-looking statements made by us are management’s beliefs based on currently available information and should not be taken as a guarantee of future results or performance, which may differ materially as a result of a variety of factors discussed in our earnings release that was issued today and our Form 10-K and most recent Form 10-Q filed with the Securities and Exchange Commission. We disclaim any obligation to update any of these forward-looking statements or to announce publicly the results of any revision to any of the forward-looking statements to reflect future events or developments. There is more complete information regarding forward-looking statements, risks and uncertainties in the company’s filings with the SEC available on our website at www.sourcefire.com.
In addition, we may discuss non-GAAP financial information on the call. This information is reconciled to comparable GAAP financial information in the earnings release. The full earnings release can be found on our website. An online replay of this call will be available on the Investors section of our website for at least 90 days.
With that, I will turn the call over to Marty Roesch, Sourcefire’s Interim CEO.
Thanks, Staci, and good morning everyone. Welcome to our 2012 Q3 earnings call. Before we begin, I wanted to take a moment to honor John Burris, a great leader and mentor and a true friend who passed away on October 19. His management style was pretty straight forward, say what you mean, do what you say, challenge the status quo, hold yourself accountable for your actions. He left us with a lasting legacy that has positioned the company to continue to succeed into the future through the collective efforts of all fireman led by a deep and experienced management team. We’ll miss John and we feel that the best way to celebrate the success that he brought us is to continue to build on it as he would have done.
In the spirit of that success, Q3 was a quarter of record revenue for Sourcefire. Our results were driven by our market leading FirePOWER platform and our increased distribution capability. We felt the same growth across all sectors of our business due to our ability to detect, understand and stop threats and do it better than anyone else.
Before hand in the call after our CFO Todd Headley, who will provide more detailed financial information including our guidance to the fourth quarter and updated thoughts on the full yea. I want to talk to you about three specific items. First, a brief overview of our financial results for the third quarter. Second, the increasing commitments by our customers and partners to our FirePOWER platform and third, a more in depth look at our threat centric approach and why we believe it will drive long term growth. Okay, first the financial results.
Revenues came in at $58.8 million in the third quarter of 2012, an increase of 30% over the year ago period and we generated adjusted net income of $7.6 million or $0.25 per diluted share. These results exceeded the top end of the guidance we provided on our second quarter earnings call. During the quarter, we saw strengths across all sectors of our business as a result of a strong adoption of our Firepower platform, our continued investment in our go-to market initiative and existing customers making a larger commitment to our solutions.
Our federal revenue grew 4% year-over-year in-line with our expectations and year-to-date our performance is very strong with revenue up 24%. We remained very well positioned with the federal government and recognized as a trusted security advisor. We have an increased level of confidence that this business can be an important element of our growth moving forward. Earlier this month, our next generation IPS was named to the Department of Defense unified capabilities improves product list enabling DoD customers to deploy our solution with even greater confidence.