Sourcefire Predicts Q1 Earnings Miss

In a preliminary filing issued Friday, Columbia, Md.-based Sourcefire said it expects gross profit of between $7.8 million and $8.2 million, up from the $6.5 million it recorded in the first quarter of 2006.

Sourcefire, which will officially report its first quarter results in early May, expects revenue of between $10.1 million and $10.5 million for the quarter, compared to the $8.5 million it racked up in the same period a year ago.

Sourcefire, which oversees commercial development of Snort, the open-source intrusion detection system, last October filed for a $75 million IPO. The open-source Snort IDS software works with Linux, Unix and Windows platforms and is used in U.S. Department of Defense networks, as well as many large enterprises.

Shares of Sourcefire were down $4.84 at $12.52 in Monday afternoon trading, a drop of nearly 30 percent.

"Historically, the first calendar quarter has been the slowest quarter of the year for us, due to seasonal factors. This year, we saw an exaggeration of that trend due to a smaller-than-expected initial order from a substantial and strategic new account and an unusual number of transactions delayed or deferred very late in the quarter," Sourcefire Chairman and CEO Wayne Jackson said in a statement. "This was particularly dramatic in the federal sector, where we saw a number of delays in the processing of awarded procurement transactions."