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Net security firm reports revenue jump

Internet Security Systems posts net income of 11 cents per share, a penny above analyst expectations, on revenue of $51.8 million.

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Stephen Shankland worked at CNET from 1998 to 2024 and wrote about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
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Stephen Shankland
Internet Security Systems reported net income of 11 cents per share Tuesday, a penny above analyst expectations, on revenue of $51.8 million.

The company's $52 million revenue was a 73 percent increase over the $30 million for the same quarter the year before. Net income grew from $693,000, or 2 cents a share, to $4.8 million, or 11 cents a share, for the same period.

The Atlanta company sells security software and services. Analysts surveyed by First Call/Thomson Financial expected revenue of 10 cents per share for the company's third quarter, which ended Sept. 30.

Robinson-Humphrey analyst Chris Hovis said Tuesday that although the company's revenue was 8 percent higher than his forecast $47.9 million, the gross margin of 68.3 percent was lower than expected.

On Monday, ISS added 11 new companies to a program to let others offer ISS software as a service to their customers. There now are 19 companies in the program, ISS said.

New partners include PricewaterhouseCoopers, Lucent NetCare, Qwest Communications International, GE Medical and HiFive.net. Existing partners include BellSouth and Globix.