I know it's a difficult equity market in which to be considering new positions. The good news is that there are a lot of very interesting companies out there that are very successful at what they do.

One such company is called ArcSight, Inc. (NASDAQ/ARST). This technology firm is in the business of selling information technology (IT) security solutions to corporate and government customers. The company's products are mainly designed to safeguard customers' IT assets, which include databases, applications, files, servers, desktops, and network devices.

Some of the company's customers include DISA (Defense Information Systems Agency), the U.S. Securities & Exchange Commission, Verizon, the U.S. Federal Reserve, Xerox, McAfee, HealthSouth, Union Bank of California, Harris, Capital Blue Cross, and the U.S. Dept. of the Treasury.

For its fiscal first quarter of 2009, ended July 31, 2008, ArcSight generated total revenues of close to thirty million dollars, up significantly from revenues of almost twenty million dollars generated in the first quarter of fiscal 2008.

GAAP net loss in the first quarter of fiscal 2009 was $1.3 million, or ($0.04) per diluted share, as compared to a GAAP net loss of $2.9 million, or ($0.28) per share.

The company finished the quarter with just over seventy-four million dollars in cash and minimal debt.

ArcSight expects its second-quarter fiscal revenues to be between twenty-nine million dollars and thirty-one million dollars, representing growth of between 18% and 26% over the same comparable quarter in the previous year.

Non-GAAP net income for the second quarter of fiscal 2009 should be between $0.7 million and $1.7 million.

For all of fiscal 2009, ArcSight expects total sales of between one hundred and twenty-four million dollars and one hundred and twenty-eight million dollars, with non-GAAP net income between $8.0 million and $9.0 million.

I think this micro-cap company is worth following in this market. In its short life on the NASDAQ, the stock has performed exceedingly well considering the poor sentiment in the broader market. A technology growth stock is just the kind of investment that can keep outperforming in a bear market, and I look forward to following this company's developments.