Rational Survivability

Congratulations to Wayne, Marty and Team @ Sourcefire as they filed their S-1 to go public. 

Sourcefire is one of Crossbeam’s top ISV partners, so it’s great to see them do well in reaching both profitabilty and leading a security IPO.  God knows we need it in this drought.

Mike Rothman did a nice job of extracting the S-1 particulars:

They hope to raise $75M or so and released the following data:

* Total revenue in 2005: $32.9 million
    * 2005 loss of $8.1 million
    * Current cash of about $25 million
    * Existing shareholders have put about $56 million into the
      company
    * Revenue ramp starting in 2002: $1.9MM, $9.4MM, $16.6MM,
      $32.9MM
    * Services currently running about 36% of total revenues
    * Last 4 quarters have been: $11.6MM, $8.5MM, $9.5MM,
      $10.8MM

    * Profitable and cash flow positive for Q3 2006
    * Over 80% of revenue from the US
    * Marty Roesch owns about 9% of the company
    * Sierra Ventures is the biggest venture investor with a 28.8% position

As Mike said, this puts SF in a very interesting place; they can either go out or set themselves up to be taken out before they finalize the deal.   Watch the sharks start to circle once again!

Interesting also that the BT/Counterpane deal also surfaced.  Makes sense given IBM/ISS.   I give HP odds of buying Verisign’s MSSP division next… 😉

It’s about time we had a security IPO — it’ll set the stage for ’07.