Websense Swings To A 4Q Profit, Beats Estimates

SAN DIEGO (AP) - Websense Inc. on Tuesday said it swung to a profit in the fourth quarter, reporting revenue and adjusted net income that both topped Wall Street analysts' expectations. It also issued a rosier-than-expected forecast for the year.

Websense, based in San Diego, makes Internet filtering and security software, which it sells to businesses as well as manufacturers who in turn install the software on systems they sell.

The earned $8.9 million, or 21 cents per share, in the quarter ended Dec. 31. That compares with a year-earlier loss of $11 million, or 25 cents per share.

Excluding one-time items, the company said it earned 32 cents per share. Analysts polled by FactSet were expecting 31 cents per share. Analysts typically exclude one-time items from their estimates.

Revenue rose to $86.4 million from $79.7 million. Analysts predicted $85.7 million.

The company said that it closed several seven-figure deals with business customers during the quarter. Websense's management said it expects its new products to gain traction throughout 2011, though it expects sales in the current first quarter to remain relatively flat compared to the same period last year.

For the year, the company earned $18.7 million, or 43 cents per share. In 2009, the company posted a loss of $10.7 million, or 24 cents per share.

Revenue rose to $332.8 million from $313.7 million.

For 2011, the company expects earnings of $1.50 to $1.60 per share, not taking into account one-time items. It also expects between $358 million and $368 million in revenue

Analysts expect earnings of $1.35 per share on $350.2 million in revenue, according to FactSet.

Websense reported its fourth-quarter results after U.S. markets closed on Tuesday. Its stock closed at $19.65, up 49 cents, or 2.6 percent. Its shares dipped 14 cents to $19.51 in extended trading.