Websense Announces Preliminary Results for Q2'09

SAN DIEGO, CA, Jul 07 (MARKET WIRE) --
Websense, Inc. (NASDAQ: WBSN) today announced preliminary, unaudited
results for the second quarter of 2009.

Preliminary results for the second quarter of 2009 include:

-- Revenue, calculated in accordance with generally accepted accounting
principles (GAAP), is expected to be in the range of $79.3 to $79.6
million, compared to $73.0 million in the second quarter of 2008.
-- Second quarter non-GAAP revenue is expected to be between $83.9 and
$84.2 million and includes approximately $4.6 million in revenue from
SurfControl that would have been recognized during this period had
SurfControl remained an independent operating company. This subscription
revenue was included in SurfControl's deferred revenue as of the date of
the acquisition, but will not be recognized as revenue on a post-
acquisition basis under GAAP due to a required write-down of SurfControl's
deferred revenue to fair value as of the acquisition date. This compares to
non-GAAP revenue of $88.2 million in the second quarter of 2008.
-- Second quarter billings, which represent the full amount of
subscriptions billed to customers during the quarter, are expected to be
approximately $82.2 million, compared to $87.3 million in the second
quarter of 2008. Using the average foreign exchange rates that prevailed
in the second quarter of 2008, total billings would have been approximately
$87.2 million. Compared to the second quarter of 2008, average contract
duration lengthened 0.9 months, predominantly due to an increase in the
duration of Websense Web Security Gateway and other new product
subscriptions for new and upgrading customers.
-- Non-GAAP earnings per diluted share are expected to be between $0.30
and $0.32, compared to $0.37 in non-GAAP earnings per diluted share in the
second quarter of 2008. Second quarter non-GAAP earnings per diluted share
in both years excludes stock-based compensation expense as well as certain
cash and non-cash expenses related to the company's acquisitions, and
includes revenue from SurfControl that would have been recognized as
described above.

Final results, including GAAP and non-GAAP revenue and earnings per
diluted share and a reconciliation of GAAP to non-GAAP financial
measures, will be released on July 28, 2009.

"We experienced a greater impact from recessionary global economic
conditions in the second quarter of 2009. The impact was concentrated
primarily in our renewing Web filtering customers, especially outside the
U.S.," said Gene Hodges, Websense Chief Executive Officer. "However, our
second quarter results show continued momentum for our new Web security
products, including the Websense Web Security Gateway and the V10000
secure Web gateway appliance, from both new and upgrading customers. We
continue to believe that our strategy of delivering essential information
protection from inbound threats and outbound leaks is aligned with market
requirements, which is demonstrated by the growth in demand for our Web
security gateway and data loss prevention solutions."

Additional financial highlights from the second quarter include:

-- Incremental billings, including upgrading and new customers, increased
more than 15 percent from a year ago and more than 35 percent from the
first quarter of 2009.
-- Billings for our Websense Web Security Gateway and new V10000 secure
Web appliance totaled more than $11 million, compared to approximately $4.4
million in the first quarter.
-- Billings for our data loss prevention solutions totaled approximately
$3.6 million, an increase of 44 percent from the second quarter of 2008.
-- Repurchase of approximately 447,000 shares of common stock for a total
of approximately $7.5 million.
-- Continued strong balance sheet, with cash balances greater than $76
million.

Conference Call on Preliminary Results

Management will host a brief conference call to review preliminary results
today, July 7, at 1:30 p.m. Pacific Time. To participate in the conference
call, investors should dial 877-440-5784 (domestic) or 719-325-4885
(international) ten minutes prior to the scheduled start of the call. A
simultaneous audio-only webcast of the call may be accessed on the
Internet at www.websense.com/investors.

For investors unable to participate in the live event, an archive of the
webcast will be available on the company's Web site through July 27, 2009,
and a taped replay of the call will be available for one week at
719-457-0820 or 888-203-1112, passcode 2065649.

Second Quarter Final Results Conference Call

Websense intends to release final second quarter 2009 financial results
after market close on July 28, 2009. Management will host a conference
call and simultaneous webcast to discuss the final results at 2:00 p.m.
Pacific Time. To participate in the conference call, investors should dial
877-741-4244 (domestic) or 719-325-4824 (international) ten minutes prior
to the scheduled start of the call. A simultaneous audio-only webcast of
the call may be accessed on the Internet at www.websense.com/investors.

For investors unable to participate in the live event, an archive of the
webcast will be available on the company's Web site through September 30,
2009, and a taped replay of the call will be available for one week at
719-457-0820 or 888-203-1112, passcode 1160646.

Non-GAAP Financial Measures

This news release provides financial measures for revenue and earnings per
diluted share that are not calculated in accordance with generally
accepted accounting principles (GAAP). These financial measures include
revenue from SurfControl that would have been recognized during the
applicable periods in 2008 and 2009 under subscriptions that were
included in deferred revenue as of the date of the acquisition, but will
not be recognized as revenue on a post-acquisition basis under GAAP due
to the impact of the write-down of the majority of SurfControl's deferred
revenue to fair value on the acquisition date. Additionally, non-GAAP
earnings per diluted share excludes stock-based compensation expense, as
well as certain cash and non-cash expenses related to the company's
acquisitions. Management believes these non-GAAP financial measures
provide meaningful supplemental information regarding our performance
that enhances management's and investors' ability to evaluate the
company's operating results, trends and prospects and to compare current
operating results with historic operating results. A reconciliation of
the GAAP and non-GAAP financial measures for the second quarter of 2009
will be provided when our final second quarter financial results are
released on July 28, 2009.

This news release also includes financial measures for billings that are
not numerical measures that can be calculated in accordance with GAAP.
Websense provides this measurement in news releases reporting financial
performance because this measurement provides a consistent basis for
understanding the company's sales activities in the current period. The
company believes the billings measurement is useful to investors because
the GAAP measurements of revenue and deferred revenue in the current
period include subscription contracts commenced in prior periods. A
reconciliation of billings to deferred revenue for the second quarter of
2009 will be provided when final second quarter financial results are
released on July 28, 2009.

About Websense, Inc.

Websense, Inc. (NASDAQ: WBSN), a global leader in integrated Web, data and
email security solutions, provides Essential Information Protection(TM)
for more than 44 million product seats under subscription. Distributed
through its global network of channel partners, Websense software and
hosted security solutions help organizations block malicious code,
prevent the loss of confidential information and enforce Internet use and
security policies. For more information, visit www.websense.com.

Websense is a registered trademark of Websense, Inc. in the United States
and certain international markets. Websense has numerous other registered
and unregistered trademarks in the United States and internationally. All
other trademarks are the property of their respective owners.

Follow Websense on Twitter: http://www.twitter.com/websense.

This news release contains forward-looking statements that involve risks,
uncertainties, assumptions and other factors which, if they do not
materialize or prove correct, could cause Websense results to differ
materially from historical results or those expressed or implied by such
forward-looking statements. All statements, other than statements of
historical fact, are statements that could be deemed forward-looking
statements, including the estimates of second quarter 2009 results and
statements containing the words "planned," "expects," "believes,"
"strategy," "opportunity," "anticipates" and similar words. These
statements may include, among others, the fact that our actual second
quarter 2009 financial results may differ from our current estimates,
plans, strategies and objectives of management for future operations; any
statements regarding future product offerings; statements of belief and
any statements of assumptions underlying any of the foregoing. The
potential risks and uncertainties which contribute to the uncertain
nature of these statements include, among others, risks relating to
execution of growth initiatives, customer acceptance of the company's
services, products and fee structures; the success of Websense brand
development efforts; the volatile and competitive nature of the Internet
industry; changes in domestic and international market conditions,
including the impact of the global economy on renewal subscriptions, and
the entry into and development of international markets for the company's
products; risks relating to currency exchange rates and macroeconomic
conditions, risks relating to intellectual property ownership; risks
relating to the required use of cash for debt servicing, risks of ongoing
compliance with the covenants in our senior credit facility; and the
other risks and uncertainties described in Websense public filings with
the Securities and Exchange Commission, available at http://www.sec.gov.
Websense assumes no obligation to update any forward-looking statement to
reflect events or circumstances arising after the date on which it was
made.

INVESTOR CONTACT:
Kate Patterson
Websense, Inc.
(858) 320-8072
kpatterson@websense.com

MEDIA CONTACT:
Cas Purdy
Websense, Inc.
(858) 320-9493
cpurdy@websense.com

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