It provides security and compliance management solutions thatintelligently mitigate business risk for enterprises and governmentagencies. The ArcSight ESM platform delivers a centralized, real-timeview of disparate digital alarms, alerts and status messages in acommand center environment.  It seeks for instant intelligentidentification, prioritization and response to external threats,insider threats and compliance and corporate policy violations. It alsohosts a complementary software package that delivers pre-packagedanalytics and reports tailored to specific security and complianceinitiatives, as well as appliances that streamline threat response,event log archiving and network configuration.

As of April 30, 2007, it had sold products to more than 350 customersacross multiple industries and government agencies in the United Statesand internationally.  It claims companies in the Fortune Top 5 of theaerospace and defense, energy and utilities, financial services, foodproduction and services, healthcare, high technology, insurance, mediaand entertainment, retail and telecommunications industries, and morethan 20 major U.S. government agencies.

Here are its industry stats: According to a report by InternationalData Corporation the security information and event management,forensics and incident investigation, and policy and compliancemanagement markets are projected to grow, in aggregate, from $993.6million in 2007 to $2.2 billion in 2011, representing a compound annualgrowth rate of 22.1%. In separate reports, IDC projects that thenetwork change and configuration management market will grow from$157.1 million in 2007 to $372.6 million in 2011, representing acompound annual growth rate of 24.1%, and the compliance infrastructuresoftware market, in which we also compete, will grow from $6.2 billionin 2007 to $10.6 billion in 2010, representing a compound annual growthrate of 19.5%.  Each fiscal year is ended APRIL 30.

YEAR    REVENUE  NET LOSS
2005    $32.82M      -$2.8M
2006    $39.43M      -$16.7M
2007    $69.83M      -$257,000

This one is venture capital backed and lists key backers as: KleinerPerkins Caufield & Byers; Institutional Venture Partners; DalyAlpha Limited Partnership; Integral Capital Partners; and NewEnterprise Associates.

Jon C. Ogg
September 11, 2007