IT Security Vendor Websense Reports Higher Q1 RevenuesBy Kathleen A. Martin | Posted 2009-04-29 Email Print
Websense's quarterly revenues climbed 21 percent year over year, and the integrated Web, data and e-mail security company narrowed its net loss in Q1.
At a time when most companies are offering explanations for revenue declines
and lowering guidance for the upcoming quarter, Websense ((NASDAQ: WBSN)
offered the first positive technology story of the week.
The provider of integrated Web, data and e-mail security solutions reported first-quarter revenue of $81 million, an increase of 21 percent from the first quarter of 2008.
The company reported a first-quarter net loss of $4.3 million, compared with a net loss of $6.2 million in the first quarter of 2008. Operating income was $5.5 million, compared with an operating loss of $14.1 million in the first quarter of 2008.
Websense also noted approximately $20.2 million worth of new and renewal subscriptions for SurfControl products.
"We continue to extend our technology and product leadership, and the results were evident in the growth of new and add-on business in the first quarter," said Websense CEO Gene Hodges in a prepared statement issued by the company. "Additionally, good renewal performance and ongoing expense management give us confidence we can meet our financial goals for the year."
What adds to this success story is the prepayment of debt. During the quarter, the company prepaid an additional $15 million in long-term debt, bringing total principal payments to $100 million since October 2007, and reducing long-term debt to $110 million as of March 31, 2009.
In addition, Websense anticipates a 30 percent growth this year in the Asia Pacific region. "We are strong in growth in markets like India. We had a terrific Q1 with about 34 percent growth. We will continue to invest in this mature market," said Timothy K. Lee, vice president for Asia Pacific and West Asia, in a prepared statement.
The company announced it will continue to invest in increasing its sales force and also in supporting and educating channel partners in the region. Websense has approximately 80 solution providers in India and will continue to sell its products exclusively through solution providers.