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CyberGuard Still Stalking Targets

Security vendor CyberGuard Corp. (Nasdaq: CGFW) posted its second-quarter results today, reporting revenues of $16.5 million, 47 percent up on the same quarter last year and just above analyst estimates of $16.38 million (see CyberGuard Reports Q2).

However, on a GAAP basis, earnings per share were 3 cents on a net income of $1 million, down from 8 cents per diluted share on $2.3 million for the same quarter of the previous year. This just missed analyst estimates of 4 cents.

The figures reflect recent acquisition activity from CyberGuard. The company, which appears to be on a mission to snap up other security vendors, picked up content security firm Webwasher AG last year and Linux specialist SnapGear in late 2003 (see CyberGuard Acquires Webwasher).

Speaking on a conference call earlier today Pat Clawson, CyberGuards CEO, was bullish about the Webwasher acquisition, despite its impact on earnings. “We did sacrifice some earnings in the near term, but there is no doubt that it was the right move for us,” he said.

Clawson pointed specifically at the cross-selling opportunities presented by the deal, particularly in Europe. Webwasher channels in Germany have already helped CyberGuard to double its firewall sales in the country, he claims.

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