During the Internet revolution, it was commonplace to see twenty-something
entrepreneurs strike it rich. But lately, many of their companies have
plunged to incredible depths. Investors want experience.
Well, there are exceptions. Take Internet
Security Systems (ISS) . It is the brainchild of
Christopher Klaus. At 19, he developed cutting-edge technology
to identify and correct problems with networks. A couple years later, he
founded ISS.
In the cyber world, life is scary for companies. Around the world, there
are conniving hackers and crackers that get thrills from breaking into
computer systems. Whether the economy is growing or slowing down, the fact
remains that companies should not stop being vigilant with network security.
So, it is no surprise that ISS has shown consistently growth. Yesterday, the
company reported its latest earnings. Revenues were $51.7 million, which
was a 73% increase from the same period a year ago (it was a
17% sequential growth rate). Net income was $4.8 million. Basically, the
company has shown 21 consecutive quarters of growth.
Of course, a critical part of the company’s success has been the constant
innovation of the product line. The technology is called SAFEsuite. And it
deals with security in a comprehensive manner, in a complete lifecycle.
SAFEsuite covers five key areas: design, management, deployment,
assessment, education and support.
ISS understands that security is different for every company. Thus,
SAFEsuite allows for extensive customization. In fact, ISS has a talented
team of security consultants who help customers setup their systems. Hey,
it is called the X-Force.
As a result, ISS has assembled a huge customer base (more than 6,000).
Examples include Citibank, Met Life and even the U.S. Army.
No question, the problems of network security are worsening. A recent study
from the FBI and the Computer Security Institute indicates that one-third of
U.S. companies have had their computer systems penetrated. In other words,
the market potential for ISS is huge.
What’s more, investors are looking for companies that can deliver consistent
earnings momentum. By all accounts, ISS fits the bill.
