These results would be substantially better than the current consensus pro forma estimate of $0.02 per share.
Websense also anticipates revenue for the third quarter to exceed $9.5 million, representing sequential quarterly growth of approximately 16 percent, and total deferred revenue to exceed $35 million. This would generate more than $5 million in Q3 positive cash flow. With this third quarter contribution, Websense expects to have approximately $94 million in cash and cash equivalents on its balance sheet at Sept. 30, 2001 (approximately $4.10 per share) and no debt.
Our subscription business model, by which customers subscribe to our database on a pre-paid, one-, two- or three-year basis, insulates Websense to many of the difficulties that other software companies are experiencing at this time, said John B. Carrington, Websense Inc. chairman and CEO. We continue to see steady demand for our core product, Websense Enterprise. We believe that Websense’s financial viability makes our software appealing to customers who need stability from their suppliers to ensure that services they have purchased are provided over the long term. It also appears that companies need an EIM system more than ever before – and customers choose strong suppliers in a difficult economy.
SOURCE: COMPANY PRESS RELEASE
