Continue reading Applied Signal Technology is ignoring the recession

Applied Signal Technology is ignoring the recession originally appeared on BloggingStocks on Mon, 22 Jun 2009 17:40:00 EST. Please see our terms for use of feeds.

About a year ago, ArcSight Inc. (NASDAQ: ARST) pulled off an IPO. For the tech sector, it was one of a handful of public offerings.

In fact, the company, which provides compliance and security management technologies, has done quite well since its debut. Revenues increased 30% and the company picked up more than 200 new customers. During this time, cash flow increased by $14 million.

Continue reading Will ArcSight's growth get boost from the Obama plan?

Will ArcSight's growth get boost from the Obama plan? originally appeared on BloggingStocks on Sun, 08 Mar 2009 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Obama's cell phone records hacked by Verizon employees

Obama's cell phone records hacked by Verizon employees originally appeared on BloggingStocks on Fri, 21 Nov 2008 07:44:00 EST. Please see our terms for use of feeds.

ABI Research says that security alarms are switching over from land line phones to wireless carriers, and AT&T Inc. (NYSE: T), along with a few companies that specialize in Machine-to-Machine (M2M) communications, is poised to benefit. ABI Research named Aeris, Jasper Wireless, Numerex and KORE Telematics as being key players in this field. The only one of those that's traded is Numerex Corp. (NASDAQ: NMRX).

ABI Research says that last year there were 2.5 million wireless security alarm connections, but by 2013 they expect to see three times that many. Alarm companies are switching to digital systems because of changing regulations, cost and -- the idea that's easiest to grasp -- the fact that the line can't be cut. ABI Research's "Home Automation and Security" is an article that analyzes the security market.

For AT&T it's a nice way to boost revenue in case that whole forcing people into iPhone contracts doesn't work out. But AT&T is so huge, will the security market make a difference? Numerex has a market cap of only $100 million. It's still and up and coming area.

AT &T and Numerex may benefit from switch to wireless alarm systems originally appeared on BloggingStocks on Thu, 05 Jun 2008 16:22:00 EST. Please see our terms for use of feeds.

Continue reading McAfee quarterly profit drops on higher costs

McAfee quarterly profit drops on higher costs originally appeared on BloggingStocks on Fri, 25 Apr 2008 13:45:00 EST. Please see our terms for use of feeds.

Continue reading Time to check in with Checkpoint

Time to check in with Checkpoint originally appeared on BloggingStocks on Mon, 03 Mar 2008 17:56:00 EST. Please see our terms for use of feeds.

eBay and MercExchange settle long-term feud originally appeared on BloggingStocks on Fri, 29 Feb 2008 14:09:00 EST. Please see our terms for use of feeds.

So far this year, the IPO market has been meager. But we did see a deal yesterday; that is, ArcSight (NASDAQ: ARST). Unfortunately, the stock fell 2.4% to $8.78 on its debut (the company's price range was $9-$11).

Although, the company is in the red-hot security space and has more than 400 customers. For the first six months ended October 31, 2007, revenues came to $44.4 million, which was up from $27.7 million.

So, might there be an opportunity here?

Well, I had a chance to interview the CEO of LogLogic, Pat Sueltz. The company plays in the same space as ArcSight. In fact, her company recently snagged $13.5 million in venture capital.

Here's her take on things:

Background on your company? What are some of the trends in your industry?

Funded by Sequoia Capital and Telesoft Partners in 2004, San Jose-based LogLogic is the largest independent vendor in the multi-billion dollar log management market. LogLogic attributes its hyper-growth to compliance mandates such as the Payment Card Industry Data Security Standard (PCI DSS) as well as pressures to automate the tracking of user activity and business performance while reducing costs.

One of the promising applications for log management is Security Information and Event Management (SIEM), as addressed by vendors such as ArcSight. According to recent studies from ESG and the SANS Institute, security, risk and compliance issues comprise only 30% of all log management use cases.

Log management continues to be a house-keeping best practice for IT managers but, today, failure to meet governance, risk and compliance standards carries serious consequences for a company and its C-level executives. Organizations are making log management a priority and they are quickly reaping the benefits, from the sys-admin up the chain of command to the CEO.

Your thoughts on the ArcSight IPO?

Log management is a multi-billion dollar market opportunity and growing rapidly. It is too early to tell on the first day of an IPO, but ArcSight is valued at a quarter of a billion dollars, which speaks to the sector's promise.

ArcSight's public offering is an important statement indicating the market requirement for stand-alone security management. Similarly, log management solutions cut across all enterprise application silos. Every application with an IP address or digital heart-beat generates important activity records that need to be monitored, managed and archived for future reference. LogLogic provides open web-services enabled platforms that are vendor neutral for this market place.

What was the recent venture funding process like?

Our series D round was straightforward and quick. We reached cash flow positive last fall and have seen more than 100% growth year-to-year due to industry demand. In 2007 alone, LogLogic signed over 160 new customers in the enterprise, mid-market and MSSP channels, bringing its total to more than 400 customers. As a result of our 2007 success, we received interest from a number of outside investors, which was an opportunity for us to ramp up global sales and marketing initiatives and accelerate our technology innovation.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

LogLogic: Logging into a big trend in security originally appeared on BloggingStocks on Fri, 15 Feb 2008 07:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The SEC has moved closer to approving the issuance of active exchange-traded funds by Invesco Plc's (NYSE: IVZ) PowerShares Capital Management. The Wall Street Journal reported that this is the start of additional SEC approvals that will change the face of the mutual fund industry.
• The Wall Street Journal also reported that despite some major cost cutting efforts, General Motors Corporation (NYSE: GM) may be challenged to come close to breaking even this year. The company still has "serious kinks" in its core automotive business in North America.
• According to the Financial Times, Morgan Stanley (NYSE: MS) will not be able to form a landmark securities joint venture in Vietnam after the government gave in to pressure from rival banks that did not approve of the deal.

• The Associated Press reported that Google Inc (NASDAQ: GOOG), looking to compete with Microsoft Corporation (NASDAQ: MSFT) in the e-mail security for businesses space, is expected to announce tools today that will build upon technology acquired last year from Postini and are designed to protect against leaks of information and to weed out potential viruses.

Newspaper wrap-up: SEC moves closer to approving issuance of ETFs originally appeared on BloggingStocks on Tue, 05 Feb 2008 07:15:00 EST. Please see our terms for use of feeds.

Shares in Israeli security company Magal Security Systems Ltd. (USA) (NASDAQ: MAGS) closed up over 17% today on the news that the company has signed a series of deals worth over $45 million. This is huge for a company with a market-cap of $74 million.

Magal develops, manufactures and markets computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. The products are used to protect national borders, airports, correctional facilities, nuclear power stations, and other sensitive facilities from terrorism, theft and other threats.

Magal stock was down almost 60% until last week, when a bottom seems to have been hit. Over the last week the stock has surged almost 40%. This little Israeli company is at the forefront of the physical security space, and with what appears to be a very strong pipeline, Magal looks very interesting going forward.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC, and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has a position and owns stock in MAGS and is long the stock. He has no positions in any other stock mentioned as of 1/30/08.

Magal Security surges originally appeared on BloggingStocks on Wed, 30 Jan 2008 16:45:00 EST. Please see our terms for use of feeds.

Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) is surging more than 18%, as the company posted strong earnings and upped its 2008 guidance. The Israeli company produces security products that are used to manage network security, including applications for managing content and guarding against computer viruses, spyware, and spam.

Commenting on the results Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems, stated, "2007 was an exceptional year for Aladdin as we crossed the $100 million mark in annual revenues while driving record levels of operating cash flow and bottom line profitability. Our software security business grew 9 percent year- over-year supported by the launch of HASP SRM, the industry's first software protection and licensing system that offers customers both hardware- and software-based security in a unified solution, while our eToken and eSafe businesses combined to drive enterprise security revenues up a truly impressive 40 percent year-over-year. Overall, Aladdin delivered full year results at the high end of our stated 2007 revenue and net income guidance, excluding the impact of the non-recurring cost recognized in the fourth quarter of 2007.

"From an operational perspective Aladdin made excellent strides in 2007 in terms of leveraging its global presence and driving new customer growth across geographies as well as key business verticals. Overall, demand for content, Internet and enterprise security solutions remains robust, driven by the rising range of IT security threats in mature as well as emerging markets. Based on the combined strength of our portfolio of software and enterprise security solutions, Aladdin has never been better positioned to capitalize on these industry growth trends, building upon our significant financial and operational achievements in 2007," concluded Margalit.

Even with today's surge the stock is trading at a PEG of just 0.95, and is still 20% of its' 52 week high. Aladdin looks like a winner at these levels.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has a position and is long ALDN. He has no positions in any stock mentioned as of 1/23408

Aladdin Knowledge Systems is no fairytale originally appeared on BloggingStocks on Thu, 24 Jan 2008 17:17:00 EST. Please see our terms for use of feeds.

Hewlett-Packard unveils newest 'data-less' laptop PC originally appeared on BloggingStocks on Thu, 24 Jan 2008 15:02:00 EST. Please see our terms for use of feeds.

The Associated Press reports that France's second-largest bank by market capitalization, Societe Generale, has uncovered a rogue trader who reportedly stole $7.14 billion -- forcing the bank to raise $8.02 billion and suspending trading in its stock on the Paris stock exchange.

Details are sketchy. The bank discovered the fraud on January 19 and 20th. It said a trader at the futures desk had misled investors in 2007 and 2008 through a "scheme of elaborate fictitious transactions." The trader used his knowledge of the group's security systems to conceal his fraudulent positions. The unnamed trader beats Nicholas Leeson, whose 1995 $1.38 billion trading fraud in Singapore brought down Barings Bank and was made into a movie.

Societe General, whose stock has lost about half its value over the last six months, has already taken a $3 billion charge for bad subprime mortgages. No word on what happened to the trader's $7 billion -- or whether this discovery will have repercussions throughout the global financial markets.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

French trader's $7 billion swindle slams Societe Generale originally appeared on BloggingStocks on Thu, 24 Jan 2008 08:23:00 EST. Please see our terms for use of feeds.

With the Virginia Tech massacre last year, universities certainly understand the extreme importance of security. As a result, notification systems - which can deal with things like cell phones, SMS, email and so on - are top-of-mind for chief information officers in universities.

The leading provider of notification services for educational institutions is NTI Group. This week NTI Group agreed to sell itself to Blackboard (NASDAQ: BBBB), a leading provider of learning management systems for universities. The deal amounts to about $182 million (there is also an earnout for $17 million).

With Blackboard's large customer base, there should be a large cross-selling opportunity. Besides, it will help the company's mobile efforts (after all, students are big-time users of cell phones and PDAs).

According to a report from the Yankee Group, the notification and alert market is expected to reach about $1.2 billion by 2011 (which translates into a 30% annual growth rate). Although, in the case of NTI, the company's growth rate is more than 50% per annum (the revenues last year were about $30 million).

Interestingly enough, NTI has a strong presence in the K12 market. This should be a nice boost for Blackboard, which is targeting this category.

In other words, this deal looks like a great fit -- and could help continue the nice growth ramp for Blackboard.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Blackboard (BBBB) alerts a new deal originally appeared on BloggingStocks on Tue, 15 Jan 2008 09:43:00 EST. Please see our terms for use of feeds.

Continue reading What's playing on your Taser MP3 holster? 'Shock the Monkey'?

What's playing on your Taser MP3 holster? 'Shock the Monkey'? originally appeared on BloggingStocks on Tue, 08 Jan 2008 16:52:00 EST. Please see our terms for use of feeds.

Verint Systems (OTC: VRNT) provides analytic software-based solutions for the security and business intelligence markets. Its analytic solutions collect, retain, and analyze voice, fax, video, email, internet, and data transmissions from voice, video and IP networks, for the purpose of generating actionable intelligence for decision makers.

The company has had a tough last couple of years, but much of the drop was unjustified. Because of filing problems at Verint's parent company, Comverse Technology (OTC: CMVT), Verint was delisted from the Nasdaq and has been trading on the pink sheets. Its business is growing strongly. It continues to sign deals, highlighted by the recent announcement that the Port Authority of New York and New Jersey will expand its deployment of Verint's Nextiva Critical Infrastructure (CI) solution and integrated analytics at all security checkpoints within LaGuardia and Newark Liberty International Airports.

Verint's problem is with low volume -- institutions are unable to take a position in the stock due to the low trading volumes. We expect these low volumes to continue until parent company Comverse Technology resolves its filing situation. Once this takes place, and Israeli Verint re-lists on the Nasdaq, the stock should move up strongly, as it is trading at just 9.7 times next year's estimates and is also near a 50% discount to competitor NICE Systems (NASDAQ: NICE). I am looking for large returns from Verint in '08.

DISCLOSURE: Writer is long VRNT, NICE, and CMVT as of 12/28/07.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.

Hot Stocks for 2008: Verint Systems parses intelligence originally appeared on BloggingStocks on Sat, 29 Dec 2007 13:40:00 EST. Please see our terms for use of feeds.

Today's news that Pakistani opposition leader Benazir Bhutto was killed in a terrorist attack has reminded everybody, including the Democratic Party, just how dangerous a world we live in. We are once again reminded that there is a very large movement of individuals bent on the destruction of the West, along with the democratic ideals that the West represents. For those who feel that it's President Bush's fault we are not well-liked, today's incident shows that the deep-rooted hatred has nothing to do with the current U.S. president, but everything to do with the ideals on which the U.S. was founded. It is these ideals that are not well-liked by these extremist elements.

With this grim reminder of the dangers still common in the world, I think this means a renewed focus on security stocks. When speaking about security, no conversation is complete without looking at the Israeli market. The undisputed leader in security technology, Israel's security establishment gained fame because of the reign of terror that the country has faced for decades. Nice Systems (NASDAQ: NICE) is one such company. The stock is bucking today's downward market pressure and is gaining more than 1.5%.

Nice is a security company specializing in two markets: Security and Call Centers. Its security solution empowers security personnel to detect, prevent and respond to threats in real-time. The system also helps in investigating and reconstructing criminal and security cases using video surveillance and control services, incident monitoring and reconstruction solutions. NICE is the market leader in providing fast and efficient solutions for the capture, storage, retrieval and analysis of customer interactions for contact centers and the enterprise. Nice will be playing an active role in the upcoming summer Olympics in Beijing.

As long as there are bad guys out there, there will be a need for a company like Nice.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has a position in NICE and is long the stock. Writer has no position in any other stock mentioned as of 12/27/07.

Bhutto assassination brings new interest to security companies originally appeared on BloggingStocks on Thu, 27 Dec 2007 15:03:00 EST. Please see our terms for use of feeds.

1. Banks, and other large, complex organizations, are migrating to a VoIP infrastructure. Nice has a nice VoIP solution to address many of these international firms' needs.
2. Nice has been quickly selling solutions for agent performance and customer relations. Nice has been successful in using beach-head marketing: getting one deal and extending and deepening customer relationships through add-on sales. Agent performance/CRM solutions have lead to new deals in risk management and corporate regulation and governance. CIBC expects these trends to continue.

Nice Systems is nice right here originally appeared on BloggingStocks on Wed, 19 Dec 2007 16:03:00 EST. Please see our terms for use of feeds.

Looking for a former billion-dollar company that has fallen off most investors' radar? Have a look at Verint Systems Inc. (OTC: VRNT). As part of the Comverse Technology, Inc. (OTC: CMVT) options backdating scandal, the company was delisted from the NASDAQ because of filing issues. Comverse was delisted as well, and its CEO fled to Africa after he was wanted by U.S. authorities. Verint is a leading provider of analytic software-based solutions for security and workforce-enterprise optimization. Their solution generates actionable intelligence through the collection, retention and analysis of various communication networks.

The company today received an upgrade from JP Morgan. The stock has gotten crushed over the last 2 years falling from a high of over $40 to today's price in the $17.40 range. Business is doing well, and as that they are in the security space, that should help valuation. There has been speculation that either the parent Comverse will get bought or they will sell off their divisions, Verint among them. This sale would fetch a hefty premium, and with a market cap in the $500 million dollar range, this could get juicy for investors. Another potential catalyst, would be for them to get current in their filing and potentially regain the NASDAQ listing, which would get them back on institutional investors radar screen.

If you are looking for an interesting turnaround story for '08, check out Verint.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer owns stock and is long both VRNT.pk and CMVT.pk. He has no position in any other stock mentioned as of 12/5/07.

Verint Systems: Turnaround story for '08 originally appeared on BloggingStocks on Wed, 05 Dec 2007 17:41:00 EST. Please see our terms for use of feeds.

Blue Coat Systems seeing green originally appeared on BloggingStocks on Tue, 20 Nov 2007 18:09:00 EST. Please see our terms for use of feeds.