Bill Brenner published this quote in his story Sourcefire IPO could fuel Snort, users say:
The infrastructure to support Snort isn't cheap and Sourcefire isn't flush with cash, said Richard Bejtlich, founder of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Washington, D.C.-based consultancy Tao Security. "The money to keep Snort thriving has to come from somewhere, and an IPO could give Snort more legs," he said.
I based this thought on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 following from Sourcefire's S-1, listed under Risks Related to Our Business:
We have incurred operating losses each year since our inception in 2001. Our net loss was approximately $10.5 million for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 year ended December 31, 2004, $5.5 million for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 year ended December 31, 2005 and $2.9 million for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 nine months ended September 30, 2006. Our accumulated deficit as of September 30, 2006 is approximately $40.3 million.
It looks like Sourcefire's losses are narrowing, which points to future profitability. My point is that development of Snort and associated software (RNA, etc.) takes significant resources. While it might not be that difficult to fork Snort and maintain its code base, adding significant features and developing complex rules would be extremely tough for a noncommercial enterprise to sustain.
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6 comments:
Increasingly, I fear cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 days of free Snort also narrowing. With an IPO come a lot of stakeholders who may or may not care a whit about open source and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 community, and might push Sourcefire into directions that may take a free Snort away from us, in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 goal of making money. :(
lonervamp: can you point out one case where an opensource related company abandoned/forked/closed its project post IPO?
Richard:
You mention that SF are not "...flush with cash" yet cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y have $25 Million in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bank from a recent round raised a few months ago.
How does $25M on a profitable Q3 (assuming continued profitability) not equal being "flush with cash?"
Chris
Hi Chris,
When you look at an accumulated deficit of $40+ million, not yet turning a profit, and investors who expect a return, I don't think having $25 million in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bank is all that great. They're filing for an IPO to raise money (hopefully $75 million) which indicates cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y need it. Yes, it could be for acquisitions, etc., but cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 point is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y need that money enough to sell more of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 company to outsiders.
@Richard:
Richard, an "accumulated deficit of $40M" doesn't imply that's what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y owe...that means that's what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y've lost. Not cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 same thing, right? Depends upon what cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y have in.
They specifically said cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y were profitable in Q3 which seems to me to suggest that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 inflow > outflow. If that's cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 case and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y still have $25M in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bank, methinks that's a healthy wallet, no?
I guess this is why I'm not a CFO?
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