Small security firm WatchGuard Technologies Inc. (Nasdaq: WGRD) registered decent growth last night, reporting net revenues of $23 million for the second quarter of 2004, up 15 percent on the same quarter last year and up 7 percent from the prior quater.
Product revenues were $16.1 million, up 22 percent from $13.1 million in the same period last year.
Investors weren't that impressed, though, and they sold shares like cheap suits in Havana. In late day trading today, the companys stock had fallen $0.42 (7.41%) to $5.25.
Company executives taking part in last nights earnings call attributed the solid performance to strong demand for the company's FireBox X and SOHO products. Other factors contributing to the results included strong performance in Asia, and higher sales of add-ons, upgrades, and services, they said.
However, on a GAAP basis, WatchGuard reported a net loss of $200,000, or 1 cent per share in the second quarter, although this was a significant improvement on the same period last year, when the company recorded a net loss of $3.6 million, or 11 cents per share.
