ArcSight Inc.
(NDAQ:ARST) is planning to raise up to $74.75 million in an initial
public offering, according to its S-1 filing with the SEC. The leading
provider of data security solutions is definitely in the crosshairs of
investors and should prove to be another hot tech IPO.
"We are a
leading provider of security and compliance management solutions that
intelligently mitigate business risk for enterprises and government
agencies," said the company. "Much like a 'mission control center,' our
ArcSight ESM platform delivers a centralized, real-time view of
disparate digital alarms, alerts and status messages, which we refer to
as events, across geographically dispersed and heterogeneous business
and technology infrastructures."
How is the company doing?
Well, ArcSight was founded in May 2000 and first sold their initial ESM
product in June 2002. Since then, revenues have grown from
$32.8 million in the fiscal year ended April 30, 2005 to $69.8 million
in the fiscal year ended April 30, 2007. Notably, they achieved
positive cash flows from operations in the fiscal years 2004 through
2007.
The future also looks extremely bright for the company.
According to a report by IDC, ArcSight's market is projected to grow,
in aggregate, from $993.6 million in 2007 to $2.2 billion in 2011,
representing a compound annual growth rate of 22.1%. Secordary markets
that the company operates in are also projected to grow at rates above
19% compound annual growth.
In the end, this may be an IPO
similar to that of VMware which jumped substantially from its initial
offering price. The data security market is quickly growing and
promises to be one of the hottest areas in the technology sector.
Combined, these factors make ARST a stock
worth watching!