Pro forma net income for the second quarter of 2001, which excludes acquisition related charges and stock based compensation expense, decreased 3% to $5.2 million, or $0.08 per diluted share, compared to pro forma net income of $5.4 million, or $0.09 per diluted share in the same period a year ago. The net loss for the second quarter of 2001, which includes acquisition related charges and stock based compensation expense, was $5.4 million, or $(0.08) per share, compared to net income of $4.2 million during the same period of the previous year.
In addition to strong financial results, we made significant progress this quarter in our strategic initiatives to diversify our business and penetrate the large enterprise market, said Sreekanth Ravi, President and CEO of SonicWALL. During the second quarter, we introduced the GX Series of gigabit performance access security appliances as well as our new, scalable SSL appliances, the R3 and R6. All of these products are designed for the high-performance security requirements of medium to large enterprises and data centers. In addition, transaction security product sales were fueled by our partnership with Cisco Systems, which transitioned from a marketing partnership to an OEM agreement during the quarter. We believe that the continued strength of our core access security products targeted at the small to medium enterprise, combined with our penetration into the large enterprise market, uniquely positions us for long term growth and market leadership.
We are encouraged by several significant developments during the second quarter, said Michael Sheridan, COO and Interim CFO of SonicWALL. Our installed base of access security appliances grew to over 165,000 units worldwide, reflecting an increase in both revenue and unit market share. We broadened our security services portfolio with the introduction of our Vulnerability Scanning Service. This new service, along with our content filtering, VPN, Anti-Virus and Authentication Services, contributed to a 172% increase over last year in our license and service revenues, which represented 21% of total revenues for the second quarter.
SOURCE: COMPANY PRESS RELEASE
