Sourcefire Beats on the Top Line

Sourcefire (Nasdaq: FIRE  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sourcefire beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Sourcefire recorded revenue of $67.4 million. The 16 analysts polled by S&P Capital IQ hoped for sales of $63.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $53.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.29. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.29 for Q4 were 16% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.08 for Q4 were 43% lower than the prior-year quarter's $0.14 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 76.0%, 90 basis points worse than the prior-year quarter. Operating margin was 4.9%, 330 basis points worse than the prior-year quarter. Net margin was 3.9%, 390 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $55.9 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $269.0 million.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 146 members out of 182 rating the stock outperform, and 36 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Sourcefire a green thumbs-up, and eight give it a red thumbs-down.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Sourcefire. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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