Revenue Up at Internet Security Systems

The company sees a 13 percent revenue increase year-over-year, with the Proventia line of multifunction security appliances showing strong growth.

Internet Security Systems Inc. on Tuesday posted earnings of 10 cents per share on revenue of $67 million for the first quarter. Although the revenue figure represents a 13 percent increase over the same period last year, earnings were down by one cent per share.

Company officials said the Proventia line of multifunction security appliances showed strong growth in the quarter. The Proventia M Series boxes grew from 2 percent of unit sales in the fourth quarter of 2003 to 11 percent in the first quarter.

Officials added that the appliances have done well in direct competition with products from Cisco Systems Inc. and Network Associates Inc.

By contrast, revenue from the companys managed services offerings dropped by nearly $1 million.

ISS also announced that it has made the M Series appliances available in wide release. The boxes had been available only in limited quantities and mainly to the largest enterprise customers.

Company officials said ISS, based in Atlanta, should generate between $66 million and $70 million in revenue in the second quarter and is on pace to bring in more than $275 million for all of 2004.

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