November 24, 2010
Wall Street Journal
Tripwire's Revenue Reaches New Heights As It Bids For Public Listing
Tripwire Inc. disclosed third-quarter financial performance figures showing the IT security company's revenue reaching its highest level on record.
The Portland, Ore.-based company, which filed for an initial public offering in May, said in its latest prospectus that it made a $2.2 million profit last quarter on $22.9 million in revenue. Third-quarter revenue beat out any prior quarter going back to the beginning of 2008, the earliest period for which information was available.
Through the first nine months of the year, Tripwire earned profits of $2.6 million on revenue of $63 million. In the same period last year it earned a $17.7 million profit on $52.5 million in revenue.
The company, which says its software and services protect physical and virtual IT infrastructure, prove compliance and prevent outages, has generated increasing revenue each year since at least 2005. But its operating margins have narrowed since last year as it has invested in sales and marketing initiatives and prepared to go public.
The company hopes to obtain a listing on the Nasdaq Global Market listing under the symbol TPWR. J.P. Morgan Chase & Co. and Stifel Nicolaus Weisel are leading the offering.
Tripwire has funded operations mostly through cash from operations since 2003. Before that it raised more than $55 million from investors including Advanced Technology Ventures, which owns 22% of the company; Institutional Venture Partners and Bessemer Venture Partners, which each own about 10%; and Industry Ventures and Ambex Venture Group, with more than 5% each.