Applications security developer Imperva Inc. has published its financial reports for the second quarter ahead of its planned IPO on Nasdaq. The company, founded by Check Point Software Technologies Ltd. (Nasdaq: CHKP) co-founder Shlomo Kramer, filed a prospectus with the US Securities and Exchange Commission (SEC) in mid-June, although it did not disclose the terms of the offering.
Imperva posted $18.8 million revenue for the second quarter, 45% more than for the preceding quarter and 40% more than for the corresponding quarter. Net loss was $2.9 million, about the same as for the corresponding quarter.
The figures indicate that Imperva's growth rate is slowing, and that it is not able to translate its revenue into a breakeven point, let alone profits. The company's aggressive sales and marketing is preventing profits. Although the sales and marketing expenses has narrowed as a percentage of revenue over the past 30 months, they still account for over half of revenue and are millstone around the company's neck.
Imperva currently has 363 employees, 24 more than in the first quarter. Seven of the new employees were hired by the sales and marketing department, bringing it up 149 people - 41% of the total workforce. In comparison, the company's R&D staff numbers 118 people, 33% of the workforce. Imperva has 166 employees in Israel, after adding ten people during the second quarter.
Imperva chairman and CEO Shlomo Kramer founded the company nine years ago. The company's security software identifies unauthorized or harmful access to an enterprise's database. The company also offers a supplementary solution to neutralize threats from applications on an enterprise network and other sources.
Published by Globes [online], Israel business news - www.globes-online.com - on July 31, 2011
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