Websense shares fall after 4Q results, outlook

Shares of Websense Inc. fell Wednesday after the maker of Internet filtering and security software posted a smaller net loss for its fourth quarter but gave a forecast for the current year that seemed to disappoint investors.

The company late Tuesday recorded a net loss of $11.9 million, or 27 cents per share, compared with a loss of $27 million, or 59 cents per share, in the same period a year earlier.

Excluding items, adjusted earnings were 31 cents per share in the latest quarter.

Revenue rose 30 percent to $79.3 million from $61 million.

Adjusted revenue was $86.1 million, including subscription revenue from past billings to customers of British Internet security company SurfControl, which Websense agreed to buy in 2007.

Analysts, on average, were expecting a profit of 28 cents per share on sales of $84.3 million, according to a poll by Thomson Reuters. Analysts typically exclude one-time items from their estimates.

The quarter's performance "was okay relative to low expectations," wrote Stifel Nicolaus analyst Todd Weller in a note to investors, keeping a "Hold" rating on the stock.

Websense forecast 2009 adjusted earnings of $1.20 to $1.30 per share. Analysts project income of $1.39 per share.

Websense expects revenue of $326 million to $334 million and adjusted revenue of $342 million to $350 million. Analysts expect $353.9 million in sales.

Weller said the company's revenue and earnings-per-share forecast was light of his expectations, as Websense "continues to experience some pressures" from the economic turmoil and foreign currency fluctuations.

The company's full-year loss was $29.9 million, or 66 cents per share, compared with a loss of $14.6 million, or 32 cents per share, a year earlier.

Revenue was $295.9 million, up from $211.7 million in 2007.

Adjusted earnings were $1.38 per diluted share and adjusted revenue totaled $347.6 million.

Shares of the San Diego-based company fell $1.32, or 9.5 percent, to $12.63 in afternoon trading as the broader market advanced. In the past 52 weeks, the stock has traded between $12.01 and $24.60.