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Small-Cap Watch: Proofpoint (PFPT) Shares Hit New All-Time High


Shares of cloud-software vendor Proofpoint this week outperformed the market on active volume

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									Robert DeFrancesco’s
June 21, 2013

Small-Cap Watch: Proofpoint (PFPT) Shares Hit New High
Read the June 2013 issue of Tech-Stock Prospector on your Amazon Kindle or
Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the June 2013 issue:

*The bullish case for Apple
*Salesforce goes shopping for its Marketing Cloud
*The next possible buyout targets in interactive marketing
*Intel finally getting some traction in mobile
*EMC returns more cash to shareholders
*Palo Alto Networks suffers its first stumble
*New security solutions boost Infoblox
*Wall Street eyes Yahoo more favorably
*How Cisco Systems is getting back in the game
*Can Aruba Networks stay competitive?
*A big addressable market for Cornerstone OnDemand
*Figuring out the right valuation for Salesforce
*Why some smart money managers like Informatica
*Workday builds out its product portfolio
*The next positive catalyst for Electronic Arts
*A surprising management shake-up at Fusion-IO
*Deal Report: Textura IPO

Order the June 2013 issue of TSP here:


This was a tough week for the overall market, with the Nasdaq Composite falling 1.9%.
But Proofpoint (PFPT, $23.62; market cap; $804 million) shares managed to gain
2.9%, and today hit a new post-IPO high at $23.75.

The following excerpt is from an article that appeared in the May 2013 issue of Tech-
Stock Prospector. Since then, the stock has advanced 25.8%.

An emerging cloud-software vendor, Proofpoint (PFPT, $18.77), a provider of data
protection solutions, reported Q1 revenue growth of 25% and billings growth of
47% (a few one-time items bumped up this number) thanks to some solid
competitive wins against Cisco Systems (CSCO) and the McAfee division of Intel

Half of sales in the quarter came from new customers. From a different perspective,
partners (including Microsoft and IBM) and resellers contributed half of revenue.

Proofpoint’s Targeted Attack Protection (TAP) solution, which uses Big Data
techniques to identify and apply additional security controls to suspicious email
messages, is proving to be a success with existing customers and is also helping the
company get into new accounts.

The company performed well in Europe, with two of the largest deals booked in the
quarter coming from this region.

In Q1, Proofpoint significantly increased its total addressable market with the
release of the Essentials suite of solutions for midsize and smaller enterprises.

The company now sees 2013 revenue of $128.5 million to $129.5 million (+21% at
the midpoint), vs. previous guidance of $126 million to $128 million.

Proofpoint went public a little over a year ago at $13 a share. We first profiled the
company in the March 2013 issue of Tech-Stock Prospector (TSP #133) when the
shares were trading around $14.80.


Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

Here’s the Kindle link:


Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street., launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

For more information or to place an order, call 800-392-0998.

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