Infection
Sourcefire, Inc. (NASDAQ:FIRE) makes devices that monitor networks for security threats, including recently introduced technology that specifically looks for malware in networks and, importantly, in the high-growth mobile space.
Malware is software that gets into a network and can delete files, bring a network down, or provide an opening for hackers. Such software was what Iran likely used to infect the 30,000 computers at the Saudi oil company. If that attack had been more effective, it could have caused a major disruption in the world’s oil supply.
Sourcefire, Inc. (NASDAQ:FIRE)’s sales have been growing steadily, however the company only turned profitable in 2009 after a string of red ink. It has made money every year since. Like Radware Ltd. (NASDAQ:RDWR), the company’s first quarter sales were down sequentially from the fourth quarter. However, they were still up year over year. The shares fell on the news, though not as steeply as Radware Ltd. (NASDAQ:RDWR)’s shares, making now a good time to consider a purchase.
Protection in a Box
Fortinet Inc (NASDAQ:FTNT)’s lead product is FortiGate and a collection of management tools that support that product. The allure here is that FortiGate provides an integrated portfolio of protection tools in a single package. That includes firewall, virtual private network, antivirus, intrusion prevention, web filtering, and antispam tools, among others. It is something of a one-stop-shop.
Fortinet Inc (NASDAQ:FTNT)’s top line was up year over year, but was sequentially lower between the fourth quarter of 2011 and the first quarter of 2012. That said, the top line has headed steadily higher over the last few years. That’s a positive sign despite relatively stagnant, though still solid, earnings. Like the other two companies here, the weak first quarter depressed the stock price and created a potential buying opportunity.
Helping our Friends
The U.S. government is making a point to help our friends fend off common cyber enemies. That said, help is only going to go so far and likely to focus on training about the best ways to detect and defend against attacks. That likely means civilian level protection, not military grade attack capabilities. In the civilian space, Radware Ltd. (NASDAQ:RDWR), Sourcefire, Inc. (NASDAQ:FIRE), and Fortinet Inc (NASDAQ:FTNT) are all important and still growing players. And recent price weakness at each company could present a good entry point for long-term investors.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Sourcefire.
The article The Cyber War Expands originally appeared on Fool.com.
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