June 10, 2010 / 8:38 PM / 9 years ago

UPDATE 1-ArcSight Q4 beats Street, sees strong Q1; shares rise

* Q4 adj EPS $0.20 vs est $0.17

* Revenue up 41 pct

* Sees Q1 adj EPS $0.11-$0.13 vs est $0.11

* Shares rise 7 pct in after-mkt trade

June 10 (Reuters) - ArcSight Inc ARST.O, which provides security and compliance management software, posted a better-than-expected quarterly profit as its market share increased, and forecast a strong current quarter.

“Increased spending on cyber-security initiatives in the Federal sector, and anticipated enhancements to compliance mandates, should further fuel our long term growth,” Chief Executive Tom Reilly said in a statement.

For the fourth quarter, net income rose more than five-fold to $22.6 million, or 62 cents a share. Excluding items, the company earned 20 cents a share.

Total revenue jumped 41 percent to $55.2 million.

Analysts on average were expecting earnings of 17 cents a share, excluding exceptional items, on revenue of $50.5 million, according to Thomson Reuters I/B/E/S.

For the current quarter, ArcSight expects adjusted earnings of 11 cents to 13 cents a share, on revenue of $44 million to $46 million. [ID:nASA00G0W]

The company, which competes with Symantec Corp SYMC.O, EMC Corp EMC.N, Cisco (CSCO.O) and IBM (IBM.N), said it expects to increase revenue by 20 percent or more in fiscal 2011, and generate adjusted operating margins between 17 percent and 18 percent.

Shares of the Cupertino, California-based company rose 7 percent to $21.25 in after-hours trade. They closed at $19.82 Thursday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Anne Pallivathuckal)

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