March 5, 2009 / 10:18 PM / 10 years ago

UPDATE 2-ArcSight Q3 profit beats Street, sees strong Q4

* Q3 adj. EPS $0.21

* Q3 revenue $36.4 mln vs est. $32.7 mln

* Sees Q4 rev $34 mln-$38 mln vs est. $33.8 mln

* Shares up 16 pct (Adds conference call details)

BANGALORE, March 5 (Reuters) - ArcSight Inc ARST.O, a provider of security and compliance management software, posted a quarterly profit that topped market estimates on strong growth across all its businesses, and it forecast better-than-expected fourth-quarter revenue, sending its shares up 16 percent.

The company, whose rivals include Symantec Corp (SYMC.O) and EMC Corp EMC.N, has been riding on rising demand for cyber security services from enterprise and government customers.

The top three revenue drivers during the quarter were government, financial services and telecoms, a company executive said on a conference call with analysts.

Analysts say the cyber security market will be a fast-growing area in coming years and could generate more than $10 billion in contracts by 2013.

In fiscal 2008, the U.S. federal government and related agencies accounted for about a fifth of its revenue.

For the third quarter ended Jan. 31, profit rose to 15 cents a share from 9 cents a year earlier. Revenue rose 32 percent to $36.4 million.

For the fourth quarter, it forecast earnings of 9 cents to 15 cents a share, excluding items. Analysts expected 10 cents a share, before items, according to Reuters Estimates.

Shares of Cupertino, California-based ArcSight were trading up 16 percent at $10.20 after the bell. They have gained 67 percent in the last three months.

For alerts, please double click [ID:nWNAB1013] (Reporting by Mansi Dutta; Editing by Deepak Kannan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below