Websense (WBSN) released earnings with revenue in the third quarter was $50.4 million, an increase of 10 percent from the third quarter of 2006. Net income calculated using generally accepted accounting principles (GAAP) was $6.4 million, or 14 cents per diluted share, compared with net income of $8.3 million or 18 cents per diluted share in the third quarter of 2006
Wall St. had been looking for revenue of $50.5 million and EPS of $.22.
Websense completed the acquisition of SurfControl on October 3, 2007. Combined third quarter net billings for Websense and SurfControl were $79.1 million and within the anticipated range of billings for the combined company. Websense billings were below the previously guided range of $56 to $59 million, primarily due to increased competition from SurfControl in North America.
The newly combined company expects revenue in the range of $92 million to $95 million in the fourth quarter and $.20 to $.23 EPS. For the full-year 2008, the merger operation is expected to have revenue of $330 to $345 million and EPS of $1.10 to $1.17.
The stock looks like it will be hit with some selling as the evening wears on.
Douglas A. McIntyre
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