Barracuda Files $100M IPO To Gain Financial Stability, Market Visibility

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In its SEC filing, Barracuda Networks said its revenue for fiscal 2013 was $198.9 million, up from $160.9 million for fiscal 2012 and $142.1 million for fiscal 2011. Of that revenue, 70 percent was recurring revenue for fiscal 2013, compared to 73 percent in 2012 and 63 percent in 2011. About 26 percent of revenue came from sales outside of North America in fiscal 2013.

The company posted a $7.4 million net loss in fiscal 2013, down from a net income of $600,000 in fiscal 2013 and $3.0 million in fiscal 2012, according to the SEC filing.

The company also wrote in its SEC filing that it has a global network of 5,000 distributors and VARs in addition to its own sales teams.

Among the risk factors the company cited in its filing was a strong competitive environment. This includes competition from companies focusing on security and storage including Blue Coat Systems, Check Point Software Technologies, CommVault Systems, EMC, F5 Networks, Fortinet, Imperva, Juniper Networks, Palo Alto Networks and Symantec, as well as large diversified vendors such as Cisco, Dell, Hewlett-Packard, Intel and IBM, which have been acquiring security and storage vendors.

Barracuda has also run afoul of U.S. law regarding the sale of products to certain countries including Iran, Sudan and Syria, but it said those potential violations were "inadvertent" and happened because the company and certain resellers "did not have sufficient compliance procedures in place to prevent the transactions at issue."

Furthermore, Barracuda is in the early stage of a lawsuit brought against it by Parallel Networks LLC, which Barracuda believes is a "non-practicing entity," a euphemism often used for "patent troll."

PUBLISHED Oct. 3, 2013

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