The San Diego, California-based company blames lower billings for lowering its third-quarter revenue estimates to $50.4m, from earlier guidance of $51 to $51.5m. Billings for the quarter are now pegged at $52.2m, down from the guided range of $56m to $59m.
Websense now expects earnings, excluding items, within its previous outlook range of 22 to 23 cents per share. That’s more or less in line with analysts that are expecting 22 cents EPS. But the company’s revised revenue forecasts still fall well below analyst expectations of $54.5m quarter.
Websense also said that it had closed the acquisition of its British rival last week and has now said that approximately three-quarters of the anticipated cost synergies are expected to result from reductions in the workforce.
Websense had 728 employees at the end of last year, and SurfControl reached the end of June with 611. The company declined to go into exact details as to how many jobs would go or when, not least because it is dealing with the more complex labor laws in the UK and Germany.
Websense said the statement of intended cost savings was a refinement of what it had published after announcing its intention to acquire SurfControl, and what is actually new in the latest document is the $10m figure for the fourth quarter. Also new is the information that combined third-quarter billings for the two companies are expected to be $79m, $27m of which will be from the SurfControl business.
