Tipping Point Reports Loss For 1Q Fiscal Year 2004

Though the company's first-quarter loss was higher than the $4.6 million loss posted in the first quarter of fiscal year 2003, executives said the revenue figure marked an increase of 42 percent from the fourth quarter of fiscal year 2003, ended Jan. 31.

Kip McClanahan, the company's CEO, described this growth as "encouraging" and noted that despite mounting losses, TippingPoint plans to redouble its efforts in the intrusion prevention marketplace in the years ahead.

"After announcing the first intrusion prevention system in 2002, it has been gratifying to watch the market mature," McClanahan said. "TippingPoint will continue to focus on leading this market with products and technology."

According to McClanahan, the first-quarter loss included a total of nearly $1.6 million in stock-based compensation for first-quarter 2004, fourth-quarter 2003 and first-quarter 2003.

Currently, he added, the company's cash and cash equivalents stand firm at $30.2 million, a base upon which the firm plans to draw when it opens an office in the United Kingdom later this month.

Peering beyond that, TippingPoint CFO Adam Chibib said the company expects to post revenue of nearly $5.2 million in the second quarter of 2004, ending July 31.

Chibib also said the company expects the firm's sales and marketing expenses to increase approximately $400,000 in the second quarter, due largely to an increase in sales head count.