Better yet, think about investing in it. The stock's getting whacked today by nearly 19%, and from our vantage point, that's an opportunity, not a disgrace. (Getting caught at work looking at that Joe Millionaire contestant's sketchy video stills from her past life is a disgrace.)
So, what's hog-tying (eh-hm, sorry) shares of Websense today, even as it reports a stunningly strong fourth quarter and year? The company's outlook for its first quarter is disappointing the Street. Websense says it will earn $0.13 to $0.14 a share, and analysts were looking for $0.14. And the market reacts by dropkicking it 19%? That's senseless.
Revenues jumped 54% to $17.4 million for Q4, and 70% to $61 million for the year. Quarterly net income skyrocketed to $6.5 million from last year's $1.6 million. The company recorded a tax benefit that boosted earnings, but even without it, income would've more than tripled relative to last quarter. Earnings for the year were equally impressive. Net income was $16.7 million, compared to last year's $3.1 million.
Websense carries no debt and generates scads of free cash flow -- almost $30 million over the last four quarters, in fact. This from a company that has recorded net income of $11.9 million in the same time frame.
Making sense out of Websense isn't hard. Pay no mind to the Street's whining today. Investors looking for a small and quickly growing company should investigate further. You should get some return from your company's snooping ways, right?
Fool co-founder Tom Gardner picked Websense for the December 2002 issue of The Motley Fool Stock Advisor. For more of Tom and David's monthly picks, check it out.