Security IPO gold rush is on!

Here is an article I thought I would never see. Priya Ganapati over at TheStreet.com writes about at least 4 security companies who are exploring IPOs.  For a very long time tech IPO's in general were written off as a possible exit strategy.  Now it seems with Sourcefire and Aruba (yes they IPO'ed as well) going public the floodgates are opening and the gold rush is on. 

TheStreet article talks about two companies Upek and AuthenTec that have already filed S-1s. Interestingly both companies are well under 100 million in revenue and both are losing money! Are we partying like it is 1999 again?  Is the market ready to accept companies with niche products doing relatively small revenue and not profitable.  I don't think so.  But then again Sourcefire has similar revenue and if I remember was barely profitable it at all.

Behind these two (who I never heard of by the way, but what do I know), are Postini and ArcSight.  I know both of these companies. Postini has had phenomenal growth and ArcSight is probably the largest of the stand alone SIMs. It would seem they might be attractive companies from an investment stand point.  One has to ask then what is behind them?  I don't think we will ever truly see a return of the Internet bubble, but are we in a security bubble? I hope so for my kids sake!

IT Security IPOs On Tap - News & Analysis - Technology - EMC - FIRE