Wednesday, 17 September 2008 11:03

Websense Leads in Web Security, Anticipates Continued Gains in 2009

Websense, Inc. (NASDAQ: WBSN), continues to lead the growing global Web Security market, according to recently issued industry analyst reports and comments.

Specifically,

- Gartner says that Websense is the leader in the secure Web gateway market with 34 percent market share.(1)

- IDC again named Websense the global leader in the overall Web Security market with 20 percent share of the US$1.4 billion dollar market in 2007 - more than the next two vendors combined. IDC combines web security software, hosted services and appliance segments to determine overall Web Security market share. In Web Security software specifically, Websense had 25 percent market share.(2)

- Infonetics Research recently reported that "Websense, which acquired SurfControl in 2007, leads the worldwide content security gateway software market, as well as the overall content security gateway market."(3)

- Radicati Group, Inc. named Websense the top player in the corporate Web security market.(4)

"As both the market share and innovation leader in this space, Websense is defining new standards in  Web security effectiveness, manageability and usability for  Web security solutions," said Gene Hodges, chief executive officer, Websense. "Powered by the technology and methodologies of our ThreatSeeker™ Network, our new  Web security Gateway will offer the industry's only dynamic categorisation of Web 2.0 content, as well as real-time scanning for malicious code and prevention of outbound data loss.

"Our investments in Web security research and product development keep our customers ahead of the threat environment with superior protection from Web-based viruses, spyware, keyloggers and other malware, as well as inappropriate Web content. We deliver value every day, and this is the reason they renew their subscriptions year after year," continued Hodges. "As we have added data loss prevention solutions and anti-spam and hosted solutions to our portfolio, we have strengthened our ability to protect customers from attacks on their data from both external and internal sources. This expanded offering, which delivers on the promise of 'essential information protection,' creates a significant cross-selling opportunity for us within our base of more than 50,000 customers."

Multiple Business Opportunities to Drive 2009 Growth

The company has identified strategic growth opportunities within each of its primary product segments with the combined potential to drive billings growth of at least 10 percent in 2009. Specifically in:

 Web Security

- The upgrade of the global customer base to the Websense  Web Security Gateway to provide real-time protection from Web 2.0 threats;

- Continued international expansion, especially in emerging markets such as Asia, Latin America, the Middle East and Africa;

- Delivery of on-demand  Web security for small and medium sized businesses (SMBs) who are attracted to the platform's management and deployment simplicity and large distributed enterprises who are interested in these services to protect their mobile workforce;

- The upgrade of the SurfControl installed base to all levels of the Websense  Web security offering;

- Growth in sales of Websense Express, the entry-level on-premise  Web security solution designed for SMBs.

Data Loss Prevention (DLP)

- Cross-selling the award-winning Websense data security solution into the Websense installed base of more than 50,000 customers, as well as sales to new customers;

- Upgrading DLP customers using the monitoring and discovery modules to the full policy enforcement capabilities of Websense Data Security Suite;

- Sales of the new endpoint DLP solution to existing and new customers.

Email Security

- Sales of Websense Hosted Email Security to large distributed enterprises and SMBs;

- Cross-selling of on-premise email security to medium-sized organisations.

Additionally, management confirms the 2008 outlook, most recently updated on July 28, 2008.

2008 Outlook (as of 9/15/08 in US dollars)

Billings $345 - 355 million

GAAP revenue $290 - 295 million

Non-GAAP revenue $340 - 345 million

Non-GAAP earnings per diluted share $1.30 - 1.35

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