Double-Take's fiscal first-quarter revenue surged 67% to $17.9 million, while license revenue rose 63% to $10.4 million. Last year's acquisition of the company's main European distributor, Sunbelt System Software, helped sweeten those results, as did its increased popularity among resellers such as Hewlett-Packard
That revenue growth certainly makes GAAP profitability easier to achieve. The company posted Q1 net income of $2.9 million, or $0.13 per share, compared to a net loss of $1.3 million, or $0.44 per share, in the year-ago period
Management expects Q2 revenue of $19 million to $19.5 million, while the full-year revenue forecast calls for revenue of $78.5 million to $80.5 million. All together, the company is selling at roughly 3.75 times its full-year revenues.
Compared to other fast-growing enterprise security companies, Double-Take's valuation looks relatively cheap. A variety of M&A deals in the space should provide further support for Double-Take shares.
With the proceeds from its recent IPO, management can expand more aggressively into Europe and Asia. The company has also broadened its product line to cover more offerings from Microsoft
Take a second look at further Foolishness: