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TWST: Please start with an overview of your coverage in the Internet security
space.
Mr. Pritchard: I cover 12 software companies right now. I am down to four in the
security space, just because of the number of acquisitions that there have been
this year. I cover Symantec (SYMC), McAfee (MFE), Check Point (CHKP), and
Websense (WBSN). I cover CA (CA), Microsoft (MSFT) and VeriSign (VRSN) - these
companies also have security products. They are not as exclusively focused on
security as those other companies, and Symantec is not now either. TWST: It sounds like a shrinking universe.
Mr. Pritchard: Yes, I think so. I cover some other companies outside of
security, but, symptomatic with what has been going on in security, a number of
those companies have been shrinking as well. TWST: Why is that?
Mr. Pritchard: I just think bigger IT companies are looking at security as an
area that's more strategic to them and that they want to invest in. So you saw
EMC (EMC) buy RSA and you saw IBM (IBM) buy Internet Security Systems (ISS).
Those two deals happened this year and probably will not be the last of the
deals. But I think it's just that customers are telling these large companies
that security is still a big problem, so these companies look at it as an
opportunity to add some value and solve the problem, but they don't have what
they need to have today. That's why they are doing these acquisitions.
Tickers included in this excerpt: ADBE, CA, CHKP, EMC, GOOG, MFE, MSFT, QSFT, SYMC, WBSN
For more information call (212) 952 7433. The
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not make stock recommendations.
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