Imperva, Inc. (NASDAQ: IMPV)
Imperva, Inc. (IMPV), a cyber security solution company yesterday reported their second quarter 2016 financial results. Imperva reported second quarter earnings per share of a loss of $0.20 to $0.22 per share which fell short of previous projections of a loss of $0.02 to $0.04 per share. Imperva reported second quarter revenues to be in between $57.5 million and $58 million which fell short of previous projections of $65.5 million to $66.5 million.
Imperva, Inc. CEO’s Comments
Anthony Bettencourt, President and Chief Executive Officer of Imperva, stated: “We are disappointed with our second quarter financial results, which were primarily impacted by extended sales cycles across most geographies and verticals predominantly relating to larger deals. During the quarter, we also experienced a reduction in size of several large purchases. We suspect we are starting to see a reversion to pre-2015 procurement patterns, in which companies are breaking down projects into phases and buying and implementing over time rather than making a large up front purchase to protect most of their key databases. With the exception of 2015, this type of incremental purchasing pattern has been the norm for our industry and we are adjusting our sales and customer strategies accordingly.”
“Notwithstanding our second quarter performance, we remain confident in the strength of our best-of-breed discovery, protection and compliance solutions. We do not believe that we are experiencing a change in the competitive environment as our win rates remained consistent during the quarter. In addition, we were pleased with the performance of our Incapsula business, which contributed to the overall growth of our subscription revenues during the quarter. The management team is continuing to analyze the factors that impacted our second quarter results and how they may impact our outlook for the full year, and is working with the Board to consider what steps we may take to address these issues. We expect to provide updated guidance and additional details during our regular earnings call.” Business Wire
IMPV Technical Analysis
IMPV opened trading yesterday at $49.54 which was up from the previous days trading of $44.76. IMPV closed trading yesterday at $48.14 and crashed down after market to $42.55, equivalent to a 12% decrease from the closing price. Taking a look at the daily chart we can see the last time IMPV traded above these levels was on June 29th when it traded at $41.64. Taking a closer look at the daily chart we can see that IMPV has been on an overall upward trend dating back to May 12th when it traded at $33.27. IMPV has a float of 26.43 million shares and traded 3.48 times the normal daily trading volume on Monday. For trading purposes, I would like to see IMPV open trading on Tuesday below $44.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Imperva, Inc. engages in the development, market, sale, and support of cyber security solutions that protect business critical data and applications in the cloud or on premises worldwide. The companys SecureSphere product line provides database, file, and Web application security in various data centers, including on-premise data centers, as well as private, public, and hybrid cloud computing environments. Its SecureSphere service also secures business-critical applications and data; and provides an accelerated route to address regulatory compliance and establishes a repeatable process for data risk management. The companys Incapsula service delivers cloud-based Website security, distributed denial of service (DDoS) protection, and load balancing and failover; and is designed to deploy and accessible to businesses that need to optimize the security, speed, and availability of their Websites. Its Skyfence service delivers real-time, automated visibility, and control over corporate use of cloud and software-as-a-service (SaaS) applications, including employee-adopted SaaS applications, applications delivered by cloud providers, and IT-led or sanctioned applications. The company also sells ThreatRadar that provides reputation and crowdsourced security intelligence services. In addition, the company provides ongoing product support services for hardware and software; and professional and training services. Imperva, Inc. offers its products and services to banks, retailers, insurers, technology and telecommunication companies, and hospitals; and the United States and other national, state, and local government agencies through a network of distributors and resellers. The company was founded in 2002 and is headquartered in Redwood Shores, California. Yahoo Finance