Websense News Releases

Websense Reports Record First Quarter Billings on Strong TRITON Performance

News Release Archive — Tue, 24 Apr 2012 20:05:00 GMT

- First quarter revenues of $89.5 million, up one percent year-over-year - First quarter billings of $80.6 million, up five percent year-over-year - First quarter TRITON billings of $49.0 million, up 42 percent year-over-year SAN DIEGO, April 24, 2012 /PRNewswire/ -- Websense, Inc. (NASDAQ: WBSN) today announced financial results for the first quarter of 2012. The company also announced the promotion of Michael A. Newman to executive vice president and chief financial officer. "This was the fourth consecutive quarter where Websense ® TRITON ™ solutions accounted for the majority of billings. It demonstrates continued success of our sales team in upgrading our filtering customers to our integrated web, email, mobile, and data security offerings," said Gene Hodges, Websense CEO. "Growth in business with new customers accelerated as we closed more enterprise transactions, consistent with the maturity and experience of our sales force. Awareness of the need for data-centric security is increasing, and security experts recognize we have the best solution to protect against modern data-stealing threats." First Quarter 2012 GAAP Financial Highlights Revenues of $89.5 million, compared with $88.6 million in the first quarter of 2011. Software and service revenues of $82.0 million, compared with $80.3 million in the first quarter of 2011. Appliance revenues of $7.5 million, which consisted of approximately $5.8 million in current-period appliance sales and approximately $1.7 million of deferred appliance revenue from pre-2011 appliance sales, compared with $8.3 million of appliance revenues in the first quarter of 2011, which consisted of approximately $4.8 million in current-period appliance sales and the remainder from deferred appliance revenue from pre-2011 appliance sales. Operating income of $10.7 million, compared with $7.8 million in the first quarter of 2011. Provision for income taxes of $11.7 million, which included $8.8 million related to an expected settlement of the U.S. Internal Revenue Service (IRS) tax audits for the 2005 through 2007 tax years. This matter is discussed in more detail later in this news release under "IRS Tax Settlement." A net loss of $1.8 million, or five cents per diluted share, compared with net income of $8.1 million, or 20 cents per diluted share, in the first quarter of 2011. The net loss of $1.8 million is the result of the $8.8 million increase in the tax provision related to the expected settlement with the IRS. Weighted average diluted shares outstanding of 37.6 million, compared with 41.4 million in the first quarter of 2011. Cash flow from operations of $22.4 million, compared with $31.4 million in the first quarter of 2011. The decrease in cash flow from operations was primarily due to lower cash collections and a $2.3 million increase in cash taxes in the first quarter of 2012 compared with the first quarter of 2011. Quarter-end accounts receivable of $61.9 million, compared with $55.4 million at the end of the first quarter of 2011 and $80.1 million at the end of the fourth quarter of 2011. Days billings outstanding of 69 days, compared with 65 days at the end of the first quarter of 2011 and 62 days billings outstanding at the end of the fourth quarter of 2011. Deferred revenue of $384.1 million, an increase of $1.8 million compared with deferred revenue of $382.3 million at the end of the first quarter of 2011. Deferred revenue at the end of the first quarter of 2012 included $6.9 million from pre-2011 appliance sales, a decrease of $9.6 million from the year ago period. Deferred revenue from pre-2011 appliance sales will continue to decrease quarterly. First Quarter 2012 Non-GAAP 1 Financial Highlights Billings of $80.6 million, an increase of five percent compared with the first quarter of 2011. Changes in currency exchange rates, compared with exchange rates prevailing in the first quarter of 2011, did not materially impact first quarter 2012 billings performance. Non-GAAP operating income of $17.8 million, compared with non-GAAP operating income of $17.1 million in the first quarter of 2011. Non-GAAP operating margin in the first quarter of 2012, calculated as a percentage of revenues, was 19.9 percent, compared with 19.3 percent in the first quarter of 2011. Billings-based operating margin of 11.9 percent, compared with billings-based operating margin of 8.8 percent in the first quarter of 2011. Billings-based operating margin is calculated like revenue-based non-GAAP operating margin, but is computed using billings as the top-line measure and excludes deferred appliance costs to match current period sales activities with current period costs. A non-GAAP tax provision of $3.2 million, based on a long-term effective tax rate of 19 percent, compared with a non-GAAP tax provision of $3.6 million, based on an effective tax rate of 20 percent, in the first quarter of 2011. Non-GAAP net income of $13.7 million, or 36 cents per diluted share, compared with $14.6 million, or 35 cents per diluted share, in the first quarter of 2011 . Summary Metrics Millions, except percentages, duration, number of transactions, and days billings outstanding Q1'12 Q1'11 Y/Y Chg Total billings $80.6 $76.7 5% U.S. billings $37.5 $34.4 9% International billings $43.1 $42.3 2% TRITON solution billings 2 $49.0 $34.4 42% Appliance billings $6.0 $5.3 13% Number of transactions >$100K 124 101 23% Average contract duration (months) 25.5 23.6 8% Days billings outstanding (DSOs) 69 65 4 days Cash and cash equivalents $70.3 $79.3 -11% Balance on revolving credit facility $68.0 $63.0 8% Share repurchases ($) $20.0 $25.0 -20% Shares repurchased 1.1 1.2 -8% 1. A detailed description of the company's non-GAAP financial measures appears under "Non-GAAP Financial Measures" and a full reconciliation of GAAP to non-GAAP results is included at the end of this news release in the tables "Reconciliation of GAAP to Non-GAAP Financial Measures." 2. TRITON solutions include the TRITON family of security gateways for web, email, mobile, and data security (including related appliances and technical support subscriptions), Websense Data Security Suite and cloud-based security solutions. Non-TRITON solutions include web filtering products, including Websense Web Filtering, Websense Web Security Suite and related appliances, plus SurfControl email security products. Outlook for the Second Quarter and Fiscal Year 2012 Websense provides guidance on anticipated financial performance for the second quarter and the fiscal year based on an assessment of the current business environment, historical seasonal business trends, and prevailing exchange rates between the U.S. dollar and other major currencies. Annual guidance is updated each quarter with the release of quarterly results. In providing guidance, the company emphasizes that all forward-looking statements are based on current expectations, including average contract duration between 23 and 24 months and prevailing currency exchange rates of $1.33 for the Euro and $1.60 for the Pound Sterling. The company disclaims any obligation to update the statements as circumstances change. Millions, except percentages and per-share amounts Q2'12 Outlook 2012 Outlook Total billings $88 – 92 $373 – 393 Appliance billings (% of total billings) 7 – 8% 7 – 8% Revenues $89 – 91 $364 – 374 Non-GAAP gross profit margin 84 – 85% 84 – 85% Non-GAAP operating margin 17 – 19% 19 – 21% Non-GAAP earnings per diluted share $0.34 – 0.37 $1.50 – 1.65 Non-GAAP effective tax rate 19% 19% Average diluted shares outstanding 37.5 – 38 37 – 38 Cash flow from operations $8 – 10 $56 – 67 Capital expenditures ~$3.0 $12 – 14 Additionally, outlook ranges for 2012 reflect: Billings-based non-GAAP operating margin of 22 to 25 percent. Billings-based non-GAAP operating margin is calculated like revenue-based non-GAAP operating margin, but uses billings as the top-line measure and excludes deferred appliance costs to match current period sales activities with current period costs. Expected cash tax payments of: Approximately $5 million in the second quarter of 2012. Approximately $21-22 million in the second half of 2012, including $15-16 million related to the expected settlement with the IRS for tax years 2005 through 2007. Non-cash items related to the recognition of revenue and costs associated with pre-2011 appliance billings: Remaining deferred revenue of $6.9 million from pre-2011 appliance billings (as of March 31, 2012) that will continue to be recognized ratably according to the original subscription periods, including $1.6 million to be recognized in the second quarter of 2012 (compared to $3.2 million in the second quarter of 2011). Remaining deferred costs of $3.2 million from pre-2011 appliance billings (as of March 31, 2012) that will continue to be recognized ratably according to the original subscription periods, including $0.7 million to be recognized in the second quarter of 2012 (compared to $1.5 million in the second quarter of 2011). On January 1, 2011, Websense was required to adopt Accounting Standards Update (ASU) 2009-13 (Multiple Deliverable Revenue Arrangements) and ASU 2009-14 (Certain Revenue Arrangements that Include Software Elements), which require the immediate recognition of appliance revenues upon sale. Prior to January 1, 2011, the company recognized revenue and costs from appliance sales ratably according to the original subscription terms. The schedules below summarize the actual and expected recognition of remaining deferred appliance revenues and costs by quarter for 2011 and 2012: 2011 Summary of Amounts Related to pre-2011 Appliance Sales Millions Deferred balances as of 12/31/10 (actual) 2011 Recognition Schedule (actual) Remaining deferred balances as of 12/31/11 (actual) Q1'11 Q2'11 Q3'11 Q4'11 2011 Revenue $20.0 $3.5 $3.2 $2.6 $2.1 $11.4 $8.6 Costs $9.2 $1.6 $1.5 $1.1 $1.0 $5.2 $4.0 2012 Summary of Amounts Related to pre-2011 Appliance Sales Millions Deferred balances as of 12/31/11 (actual) 2012 Recognition Schedule Remaining deferred balances as of 12/31/12 (expected) Q1'12 (actual) Q2'12 (expected) Q3'12 (expected) Q4'12 (expected) 2012 (expected) Revenue $8.6 $1.7 $1.6 $1.4 $1.2 $5.9 $2.7 Costs $4.0 $0.8 $0.7 $0.6 $0.5 $2.6 $1.4 IRS Tax Settlement The company announced an agreement in principle to settle an outstanding dispute with the IRS relating to an audit of the company's 2005 through 2007 tax years. During the first quarter of 2010, the company was informed by the IRS that it had completed its audit of the company's tax returns from 2005 through 2007, and the IRS proposed tax adjustments relating to the company's buy-in and cost-sharing arrangement with its Irish subsidiary, the company's research and development tax credits, and income tax deductions for certain equity compensation. The amount of additional tax proposed by the IRS totaled approximately $19.0 million. As a result of settlement discussions during the first quarter of 2012, the company reached an agreement in principle with the IRS to settle the audit adjustments. Upon entering into a definitive settlement agreement, the company expects to pay approximately $10 million in federal tax, plus $5-6 million in state tax and accumulated interest. The company expects these additional tax amounts to be offset in part by approximately $4 million of future tax benefits. When finalized, the settlement completely resolves the issues in dispute, including issues related to buy-in payments associated with the company's cost-sharing arrangement with its Irish subsidiary. Newman to Lead Finance and Administration The company announced the promotion of Michael A. Newman to executive vice president and chief financial officer. Since September 2011, Newman has been serving as interim chief financial officer in addition to his roles as general counsel and chief administrative officer. As chief financial officer, Newman's responsibilities will include finance, accounting, tax, investor relations, human resources, legal, and facilities. He also will continue to serve as the company's corporate secretary. The company has initiated a search to fill the general counsel role. "Mike knows our business well and is eminently qualified to lead our finance and accounting organizations," said Gene Hodges, Websense CEO. "He played a central role in the development and execution of our transformation strategy. As general counsel and chief administrative officer, he participates in virtually every aspect of our business, from collaborating with sales leadership on sales process to working with engineers in expanding the company's patent portfolio. We have strong leaders in each of the functional areas Mike manages, and he has proven his ability to lead this team since assuming the interim CFO role last fall." Newman joined the company in 2002 as general counsel and later broadened his areas of responsibility to include human resources, facilities, and administration. Conference Call Details Management will host a conference call and simultaneous webcast to discuss the financial results and outlook today, April 24, at 2 p.m. Pacific Daylight Time. To participate in the conference call, investors should dial (866) 757-5630 (domestic) or 707-287-9356 (international) 10 minutes prior to the scheduled start of the call. A simultaneous audio-only webcast of the call may be accessed at www.websense.com/investors . An archive of the webcast will be available on the company's website through June 30, 2012, and a recorded replay of the call will be available for one week at (855) 859-2056 and (404) 537-3406, pass code 68383874. Non-GAAP Financial Measures This news release provides financial measures for non-GAAP gross profit, operating expenses, operating margin, income from operations, provision for income taxes, net income, and diluted earnings per share that are not calculated in accordance with GAAP. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding 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. Reconciliations of the GAAP and non-GAAP financial measures for the first quarters of 2012 and 2011 are provided at the end of this news release. This news release also includes financial measures for various categories of billings, billings operating margin and other billings-related measures that are not numerical measures that can be calculated in accordance with GAAP. Websense provides these measurements in reporting financial performance because these measurements provide a consistent basis for understanding the company's sales activities in the current period. The company believes that these measurements are useful to investors because the GAAP measurements of revenues and deferred revenue in the current period include subscription contracts commenced in prior periods. The roll forward of deferred revenue (which includes billings and revenues) for the first quarter of 2012 is set forth at the end of this news release. About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security , email security , mobile security , and data loss prevention (DLP) solutions, delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as software, appliance and Security-as-a-Service (SaaS), Websense content security solutions help organizations leverage web 2.0 and cloud communication, collaboration, and social media while protecting from advanced persistent threats, preventing the loss of confidential information and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.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's 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 financial estimates; the statements of Gene Hodges; statements about our expected continued success selling TRITON solutions; statements about the effectiveness of our products; billings, revenues, and growth trends; statements regarding the expected settlement with the IRS; and statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. The potential risks and uncertainties that contribute to the uncertain nature of these statements include, among others, risks associated with customer acceptance of the company's products and services, product performance, launching new product offerings, products and fee structures in a changing market, the success of Websense's brand development efforts, the volatile and competitive nature of the internet and security industries, changes in domestic and international market conditions (including in continental Europe), fluctuations in currency exchange rates and impacts of macro-economic conditions on our customers, ongoing compliance with the covenants in the company's credit facility, changes in accounting interpretations, and the other risks and uncertainties described in Websense's public filings with the Securities and Exchange Commission, available at www.websense.com/investors . 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: MEDIA CONTACT: Kate Patterson Patricia Hogan Websense, Inc. Websense, Inc. (858) 320-8072 (858) 320-9393 kpatterson@websense.com phogan@websense.com Websense, Inc. Consolidated Balance Sheets (In thousands) March 31, 2012 December 31, 2011 Assets (Unaudited) Current assets: Cash and cash equivalents $ 70,346 $ 76,201 Accounts receivable, net 61,914 80,147 Income tax receivable/prepaid income tax 155 738 Current portion of deferred income taxes 30,055 30,021 Other current assets 13,408 13,793 Total current assets 175,878 200,900 Cash and cash equivalents - restricted, less current portion 659 628 Property and equipment, net 17,492 16,832 Intangible assets, net 24,294 26,412 Goodwill 372,445 372,445 Deferred income taxes, less current portion 8,667 8,599 Deposits and other assets 7,906 8,622 Total assets $ 607,341 $ 634,438 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 6,319 $ 9,026 Accrued compensation and related benefits 22,356 22,770 Other accrued expenses 15,390 16,534 Current portion of income taxes payable 10,819 3,187 Current portion of deferred tax liability 87 86 Current portion of deferred revenue 242,363 250,597 Total current liabilities 297,334 302,200 Other long term liabilities 2,456 2,600 Income taxes payable, less current portion 12,235 11,955 Secured loan 68,000 73,000 Deferred tax liability, less current portion 2,520 2,501 Deferred revenue, less current portion 141,713 142,437 Total liabilities 524,258 534,693 Stockholders' equity: Common stock 571 568 Additional paid-in capital 421,635 415,573 Treasury stock, at cost (407,018) (385,544) Retained earnings 70,414 72,247 Accumulated other comprehensive loss (2,519) (3,099) Total stockholders' equity 83,083 99,745 Total liabilities and stockholders' equity $ 607,341 $ 634,438 Websense, Inc. Consolidated Statements of Operations (Unaudited and in thousands, except per share amounts) Three Months Ended March 31, 2012 2011 Revenues: Software and service $ 82,008 $ 80,303 Appliance 7,516 8,331 Total revenues 89,524 88,634 Cost of revenues: Software and service 10,975 10,426 Appliance 3,187 4,237 Total cost of revenues 14,162 14,663 Gross profit 75,362 73,971 Operating expenses: Selling and marketing 39,027 40,855 Research and development 15,290 14,160 General and administrative 10,318 11,164 Total operating expenses 64,635 66,179 Income from operations 10,727 7,792 Interest expense (656) (426) Other (expense) income, net (252) 1,464 Income before income taxes 9,819 8,830 Provision for income taxes 11,652 709 Net (loss) income $ (1,833) $ 8,121 Basic net (loss) income per share $ (0.05) $ 0.20 Diluted net (loss) income per share $ (0.05) $ 0.20 Weighted average shares - basic 37,630 40,531 Weighted average shares - diluted 37,630 41,398 Financial Data: Total deferred revenue $ 384,076 $ 382,334 Websense, Inc. Consolidated Statements of Cash Flows (Unaudited and in thousands) Three Months Ended March 31, 2012 2011 Operating activities: Net (loss) income $ (1,833) $ 8,121 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 4,906 6,510 Share-based compensation 5,014 5,505 Deferred income taxes - 119 Unrealized gain on foreign exchange 144 (750) Excess tax benefit from share-based compensation (130) (529) Changes in operating assets and liabilities: Accounts receivable 18,968 26,779 Other assets 321 (1,316) Accounts payable (3,206) (403) Accrued compensation and related benefits (680) (1,078) Other liabilities (483) (2,201) Deferred revenue (8,962) (11,974) Income taxes payable and receivable/prepaid 8,297 2,627 Net cash provided by operating activities 22,356 31,410 Investing activities: Change in restricted cash and cash equivalents (17) 38 Purchase of property and equipment (2,784) (1,911) Purchase of intangible assets - (275) Net cash used in investing activities (2,801) (2,148) Financing activities: Proceeds from secured loan - 26,000 Principal payments on secured loan (5,000) (30,000) Principal payments on capital lease obligation (587) (569) Proceeds from exercise of stock options 1,383 1,711 Excess tax benefit from share-based compensation 130 529 Tax payments related to restricted stock unit issuances (1,475) (1,401) Purchase of treasury stock (20,490) (23,969) Net cash used in financing activities (26,039) (27,699) Effect of exchange rate changes on cash and cash equivalents 629 390 (Decrease) Increase in cash and cash equivalents (5,855) 1,953 Cash and cash equivalents at beginning of period 76,201 77,390 Cash and cash equivalents at end of period $ 70,346 $ 79,343 Cash paid during the period for: Income taxes, net of refunds $ 2,997 $ 694 Interest $ 607 $ 393 Non-cash financing activities: Change in operating assets and liabilities for unsettled purchase of treasury stock and exercise of stock options $ 313 $ 1,030 Websense, Inc. Rollforward of Deferred Revenue (Unaudited and in thousands) Deferred revenue balance at December 31, 2011 $ 393,034 Net billings during first quarter 2012 80,567 Less revenue recognized during first quarter 2012 (89,524) Translation adjustment (1) Deferred revenue balance at March 31, 2012 $ 384,076 Websense, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited and in thousands, except per share amounts) Three Months Ended March 31, 2012 2011 GAAP Gross profit $ 75,362 $ 73,971 Amortization of acquired technology (2) 539 645 Share-based compensation (1) 338 285 Gross profit adjustment 877 930 Non-GAAP Gross profit $ 76,239 $ 74,901 GAAP Operating expenses $ 64,635 $ 66,179 Amortization of other intangible assets (2) (1,512) (3,160) Share-based compensation (1) (4,675) (5,220) Operating expense adjustment (6,187) (8,380) Non-GAAP Operating expenses $ 58,448 $ 57,799 GAAP Income from operations $ 10,727 $ 7,792 Gross profit adjustment 877 930 Operating expense adjustment 6,187 8,380 Non-GAAP Income from operations $ 17,791 $ 17,102 GAAP Provision for income taxes $ 11,652 $ 709 Provision for income taxes adjustment (8,433) 2,931 Non-GAAP Provision for income taxes (3) $ 3,219 $ 3,640 GAAP Net (loss) income $ (1,833) $ 8,121 Gross profit adjustment 877 930 Operating expense adjustment 6,187 8,380 Amortization of deferred financing fees (4) 60 60 Provision for income tax adjustment 8,433 (102) Tax related adjustments from other discrete items (5) - (2,829) Non-GAAP Net income $ 13,724 $ 14,560 GAAP Net (loss) income per share $ (0.05) $ 0.20 Non-GAAP adjustments as described above per share, net of tax (1-5) 0.41 0.15 Non-GAAP Net income per share $ 0.36 $ 0.35 GAAP Diluted common shares 37,630 41,398 Effect of dilutive securities 540 - Non-GAAP Diluted common shares 38,170 41,398 (1) Share-based compensation. Consists of non-cash expenses for employee stock options, restricted stock units and our employee stock purchase plan determined in accordance with the fair value method of accounting for share-based compensation. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it is useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results. (2) Amortization of acquired technology and other intangible assets. When conducting internal development of intangible assets (including developed technology, customer relationships, trademarks, etc.), GAAP accounting rules require that we expense the costs as incurred. In the case of acquired businesses, however, we are required to allocate a portion of the purchase price to the accounting value assigned to intangible assets acquired and amortize this amount over the estimated useful lives of the acquired intangibles. The acquired company, in most cases, has itself previously expensed the costs incurred to develop the acquired intangible assets, and the purchase price allocated to these assets is not necessarily reflective of the cost we would incur in developing the intangible asset. We eliminate these amortization charges from our non-GAAP operating results to provide better comparability of pre- and post-acquisition operating results and comparability to results of businesses utilizing internally developed intangible assets. (3) Non-GAAP effective tax rate. The company's annual non-GAAP effective tax rate is calculated by dividing the company's estimated annual non-GAAP tax expense by its estimated annual non-GAAP taxable income. The company's estimated non-GAAP taxable income is determined by adjusting its estimated GAAP taxable income for its non-GAAP adjustments on a country-by-country basis. The company determines its annual estimated non-GAAP tax expense by adding together the estimated non-GAAP tax expense for each country based on each country's applicable tax rate. The company determines its interim non-GAAP effective tax expense in accordance with the general principles of ASC 740, Accounting for Income Taxes. In 2012, the company's effective tax rate is based on the company's anticipated long term non-GAAP tax expense divided by the company's long term non-GAAP taxable income on a country by country basis. (4) Amortization of deferred financing fees. This is a non-cash charge that is disregarded by the company's management when evaluating our ongoing performance and/or predicting our earnings trends, and excluded by us when presenting our non-GAAP financial measures. Further, we believe it is useful to investors to understand the specific impact of this charge on our operating results. (5) Tax related adjustments from other discrete items. This amount represents the non-recurring tax effect from the transfer of customer relationship intangible assets and the related deferred tax liabilities from a higher tax rate jurisdiction to a lower tax rate jurisdiction. The tax benefit is reflected in the first quarter of 2011 upon the completion of our global distribution restructuring and is not expected to recur. Websense, Inc. Non-GAAP Billings Operating Margin Reconciliation (Unaudited and in thousands, except percentages) Three Months Ended March 31, Billings: 2012 2011 Software and service billings $ 74,615 92.6% $ 71,409 93.2% Appliance billings 5,952 7.4% 5,250 6.8% Total billings 80,567 100.0% 76,659 100.0% Non-GAAP Cost of billings: Software and service cost of billings 10,098 13.5% 9,496 13.3% Appliance cost of billings (1) 2,429 40.8% 2,623 50.0% Non-GAAP Cost of billings 12,527 15.5% 12,119 15.8% Non-GAAP Gross margin: Software and service gross margin 64,517 86.5% 61,913 86.7% Appliance gross margin 3,523 59.2% 2,627 50.0% Non-GAAP Gross margin 68,040 84.5% 64,540 84.2% Non-GAAP Operating expenses: Selling and marketing 35,734 44.4% 36,365 47.4% Research and development 14,019 17.4% 13,116 17.1% General and administrative 8,695 10.8% 8,318 10.9% Non-GAAP Operating expenses 58,448 72.6% 57,799 75.4% Non-GAAP Billings operating margin $ 9,592 11.9% $ 6,741 8.8% (1) Excluding deferred appliance expenses associated with pre-2011 appliance sales. The non-GAAP financial measures included in the tables above are non-GAAP gross profit, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP provision for income taxes, non-GAAP net income and non-GAAP net income per share, which adjust for the following items: acquisition related adjustments, share-based compensation expense, amortization of intangible assets and certain other items. We believe the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance for the reasons discussed below. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods. The annual operating plan approved by our Board of Directors is based upon non-GAAP financial measures and our management incentive plans also use non-GAAP financial measures as performance objectives. We believe that these non-GAAP financial measures also facilitate comparisons of the Company's performance to prior periods and to our peers and that investors benefit from an understanding of these non-financial measures. SOURCE Websense, Inc....(read more)

Websense 2012 Threat Report: How Cybercriminals Are Infecting Networks and Stealing Data Undetected

News Release Archive — Thu, 19 Apr 2012 12:05:00 GMT

Award-winning Websense Security Labs outlines top recommendations and insights for protecting from and containing sophisticated malware and targeted attacks SAN DIEGO, April 19, 2012 /PRNewswire/ -- Research released today by the Websense ® Security Labs™ in the Websense 2012 Threat Report reveals the trifecta that is driving epidemic levels of data theft: 1) extremely effective social media lures; 2) evasive and hard-to-detect infiltration of malware; and 3) sophisticated exfiltration of confidential data. The report provides real-world examples, and offers practical advice to IT security practitioners. "Traditional defenses just aren't working any more. Organizations need real-time defenses with multiple detection points that deeply analyze both the inbound content of each website and email as well as the outbound transmission of sensitive data," said Charles Renert, vice president of research and development for Websense. "Nearly all data-stealing attacks today involve the web and/or e-mail. And many increasingly use social engineering to take advantage of the human element as the weakest link. Since the current generation of attackers use multiple data points and threat vectors to target their victims, only a solution that understands the entire threat lifecycle and combines data from each phase can protect against them." Below are key findings: 82 percent of malicious websites are hosted on compromised hosts. If compromised hosts are the norm, cloud and hosting services can't be trusted. This threatens to put a damper on our economy, which is tapping the cloud as a backbone for commerce, communications, and culture. 55 percent of data-stealing malware communications are web-based. 43 percent of Facebook activity is streaming media, including viral videos. That's more than five times the next largest category of news and media within Facebook. The streaming media percentage is important because web lures (like videos, fake gift offers, surveys, and scams) prey on human curiosity and have moved onto the social network. Websense has partnered with Facebook to scan all clicked Facebook web links so that Websense researchers have unprecedented visibility into the social network's content. 50 percent of malware redirects lead to the United States followed by Canada. 60 percent of phishing attacks are hosted in the United States trailed by Canada. The United States is also the top host of malware (36 percent), followed by Russia. 74 percent of email is spam, compared to the previous year of 84 percent. It's clear that efforts to take down spam botnets are showing results. However, while overall spam is down, 92 percent of email spam contains a URL, illustrating the increasingly blended nature of today's email threats. The top five email malware lures are: order notifications, ticket confirmations, delivery notices, test emails, and tax refund information. Spear phishing also continues to increase as a delivery vehicle for targeted attacks. Websense Labs has analyzed more than 200,000 Android apps and does see a noticeable quantity with malicious intent or permissions. The number of users who will be exposed to a malicious mobile app is increasing quickly. Advanced threats can be described in six stages: lures, redirects, exploit kits, dropper files, call-home communications, and data theft. Each stage has unique characteristics that need specific real-time defenses . Traditional defenses mainly focus on the fourth stage and known threats by looking at malware files, and in large part that is why they are ineffective. Advanced threats use unique dropper files that go undetected by traditional defenses for hours or days. Multimedia Elements: A full copy of the Websense 2012 Threat Report can be downloaded here . Click to share the Websense 2012 Threat Report on Facebook. Click to share on Twitter: New @Websense 2012 threat report finds more targeted cyber-attacks are stealing confidential data http://ow.ly/9NyFf Websense Links: Facebook: "Like" Websense . Twitter: Follow @Websense. About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, mobile security, and data loss prevention (DLP), delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense...(read more)

Websense Beats All Security Competitors By Winning Three SC Magazine Awards

News Release Archive — Wed, 11 Apr 2012 12:05:00 GMT

Websense TRITON named Best Enterprise Security Solution and Best Web Content Management Solution SAN DIEGO, April 11, 2012 /PRNewswire/ -- Twenty-eight security companies won one SC Magazine award each this year. Just three security companies won two awards. But only Websense won three security awards—including Best Enterprise Security Solution. Up against Sourcefire, Splunk, Verdasys, and WhiteHat Security for Best Enterprise Security Solution, Websense proved to an expert panel of security professionals that its next-generation containment defenses are the most effective at stopping advanced malware and data theft. In addition to winning Best Enterprise Security Solution, Websense Web Security Gateway Anywhere was a dual winner and also won Best Web Content Management Solution. And the Websense® Security Labs™ Blog was named Best Corporate Security Blog. "Effectiveness against advanced threats and data theft is what makes Websense stand out," said Tom Clare, senior director of product marketing for Websense. "Targeted attacks, social lures, exploit kits, and data theft have changed the security playing field and are showing the weaknesses in traditional and competitive products. These awards are the latest validation that Websense Security Labs and the Websense TRITON™ solutions are the leaders for effective enterprise security." Websense Web Security Gateway Anywhere is part of the Websense TRITON architecture , which unifies all of the key components of threat defense and data theft prevention into a cohesive content security system. The TRITON solution brings together web security, email security, mobile security, and data loss prevention (DLP) defenses and unified security intelligence. And all under one management console. TRITON solutions can be deployed on enterprise-grade appliances, as cloud-based services, and as powerful and efficient hybrids of on-premise and cloud elements working together. Websense won the Best Web Content Management Solution award after proving the strength and overall impact of Websense Web Security Gateway Anywhere to the Reader Trust Voting Panel. The panel represented a cross-section of SC Magazine readers and included large, medium, and small enterprises from all major markets. The Websense Security Labs blog was voted the winner of Best Corporate Security Blog by online votes from security professionals. The blog is a trusted source for up-to-date information on the latest outbreaks, threats, and other research-focused security topics. The research expertise of the Websense Security Labs is also responsible for the ongoing threat detection and effectiveness of the Websense ACE (Advanced Classification Engine) and Websense TRITON products. "Congratulations to Websense for winning three 2012 SC Magazine Awards," said Illena Armstrong, VP and editorial director, SC Magazine . "Websense impressed SC Magazine readers, our distinguished panel of judges, and the SC Magazine editors with their innovations and effectiveness." In its 15th year, the annual SC Awards showcase the best solutions, services and professionals, while recognizing achievement and technical excellence. The ceremony took place on February 28, 2012 at the SC Awards Gala, held in conjunction with the annual RSA Conference in San Francisco. SC Magazine distinguishes the achievements of the security professionals in the trenches, the innovations happening in the vendor and service provider communities and the passionate work of government, commercial and nonprofits—all working to help improve global security. For more information and a detailed list of categories and winners, please visit www.scmagazineus.com/awards . About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, mobile security, and data loss prevention (DLP), delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense About SC Magazine SC Magazine provides IT security professionals with in-depth and unbiased information through timely news, comprehensive analysis, cutting-edge features, contributions from thought leaders and the best, most extensive collection of product reviews in the business. By offering a consolidated view of IT security through independent product tests and well-researched editorial content that provides the contextual backdrop for how these IT security tools will address larger demands put on businesses today, SC Magazine enables IT security pros to make the right security decisions for their companies. The brand's portfolio includes the SC World Conference and Expo, SC Congress Canada, SC Magazine Awards, SC Directory, SC Magazine Newswire and SC Magazine IT Security Executives Forums. Fan us on Facebook! http://www.facebook.com/SCMag Follow us on Twitter: http://twitter.com/scmagazine Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense, Inc....(read more)

Websense Schedules Conference Call to Review First Quarter 2012 Financial Results on April 24, 2012

News Release Archive — Wed, 04 Apr 2012 12:05:00 GMT

SAN DIEGO, April 4, 2012 /PRNewswire/ -- Websense, Inc. (NASDAQ: WBSN) confirms plans to release financial results for the first quarter of 2012 after the market close on April 24, 2012. Management will host a conference call and simultaneous webcast to discuss the results at 2 p.m. Pacific Time. To participate in the conference call, investors may dial 866-757-5630 (domestic) or 707-287-9356 (international) at least 10 minutes prior to the scheduled start of the call. The press release, supporting materials, and link to the simultaneous webcast of the call will be available at investor.websense.com . For investors unable to participate in the live event, an archive of the webcast will be available on the company's website through June 30, 2012 and a taped replay of the call will be available for one week at 855-859-2056 or 404-537-3406, pass code 68383874. About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security , email security , mobile security , and data loss prevention (DLP) , delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense INVESTOR CONTACT: MEDIA CONTACT: Kate Patterson Patricia Hogan Websense, Inc. Websense, Inc. (858) 320-8072 (858) 320-9393 kpatterson@websense.com phogan@websense.com SOURCE Websense, Inc....(read more)

Survey Says Canada Tops Mobile Data Loss, 58 Percent of Organizations Lose Data Through Insecure Mobile Devices

Patricia Hogan — Mon, 19 Mar 2012 18:55:00 GMT

TORONTO—March 19, 2012— A new “Global Study on Mobility Risks” reveals that corporate mobile devices and the bring-your-own-device (BYOD) phenomenon are rapidly circumventing enterprise security and policies in Canada. Seventy-one percent of more than 400 respondents in Canada agree that the use of mobile devices in the workplace is important to achieving business objectives. But 72 percent also believe that these devices put their organizations at risk—and only half the organizations surveyed have the necessary security controls to address the risk.

“IT has spent years working on desktop security and trying to prevent data loss over web and email channels—but mobile devices are radically changing the game,” said Fiaaz Walji, Websense Canadian Country Manager. “Tablets and iOS devices are replacing corporate laptops as employees bring-their-own-devices to work and access corporate information. These devices open the door to unprecedented loss of sensitive data. IT needs to be concerned about the data that mobile devices access and not the device itself.”

According to a previous Ponemon Institute^© survey, IT respondents said 63 percent of breaches occurred as a result of mobile devices. And only 28 percent said employee desktop computers were the cause.⁽ⁱ⁾

Today’s research, conducted by the Ponemon Institute and sponsored by content security provider Websense, Inc.^® (NASDAQ: WBSN), is designed to help IT security professionals plan for an increasingly mobile workforce. The research shows that organizations often don’t know how and what data is leaving their networks through non-secure mobile devices. Traditional static security solutions such as antivirus (AV), firewalls, and passwords are not effective at stopping advanced malware and data theft from malicious or negligent insiders. This survey defines mobile devices as laptops, USB drives, smartphones, and tablets.

To safely permit corporate use of mobile devices, Websense recently released its new Websense TRITON Mobile Security solution. It combines four key components (web security, data security, mobile malware and app protection, and vital mobile device management features) into one solution. As a cloud security service, available anytime anywhere, it prevents confidential data loss on iPads, iPhones, Android, and other mobile devices.

Key findings

- Forty-five percent of respondents report that employees circumvent or disengage security features, such as passwords and key locks, on corporate and personal mobile devices.

- Fifty-eight percent of the organizations in this study experienced data loss resulting from employee use of insecure mobile devices, including laptops, smartphones, USB devices, and tablets. Canada and Italy ranked the highest out of the 12 countries surveyed for mobile data loss.

- Seventy-one percent of respondents agree that the use of mobile devices in the workplace is important to achieving business objectives. A similar percentage (72 percent) believes that these tools put their organizations at risk. Only half of the organizations have the necessary security controls to address the risk, and only six percent say that all employees are compliant and five percent do not know.

- Sixty-two percent of respondents say that over the past 12 months, their organizations experienced an increase in malware infections as a result of insecure mobile devices in the workplace. Twenty-six percent of respondents say that mobile devices are responsible for an increase of more than 50 percent in malware infections. And, out of the 12 countries surveyed, Canada made the top three for the highest amount of infections.

- Sixty-five percent of respondents are most concerned with employees taking photos or videos in the workplace—probably due to fears about the theft or exposure of confidential information.

Websense cloud security services protect remote users anytime and anywhere, including mobile devices and laptops.

Quotes

“This survey shows that Canadian organizations need a safe way to manage their mobile devices,” said Fiaaz Walji, Websense Canadian Country Manager. “Websense saw that need and developed our new Websense TRITON Mobile Security solution. We believe we are the only vendor that addresses the security gaps detailed in the survey. We take mobile security to the next level by combining device management (MDM) with real-time protection from data loss, dynamic web threats, mobile malware, and malicious mobile apps.”

“We surveyed hundreds of IT security professionals, and mobile devices were overwhelmingly important to business objectives,” said Dr. Larry Ponemon, chairman and founder of the Ponemon Institute. “However, mobile devices put organizations at risk—risks that they do not have the necessary security controls and enforceable policies to address. It’s also clear that employees are deliberately disabling security controls, which is a serious concern.”

Multimedia Elements:

A full copy of the Websense “Global Study on Mobility Risks,” which focuses on the Canadian results, can be downloaded here.

Click to share the Canadian survey results on Facebook.

Click to share on Twitter:

New survey finds 58 percent of Canadian businesses lost data through mobile devices http://ow.ly/9HKLs

Websense Links:

Facebook: “Like” Websense Canada.

Twitter: Follow @Websense.

(i) Source: Ponemon Institute “Perceptions about Network Security” by Ponemon Institute, June 2011.

About Websense, Inc.

Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, mobile security, and data loss prevention (DLP), delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com.

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

Join the discussion on Facebook: www.facebook.com/websense

###

Websense Redefines Mobile Security by Combining Industry-Leading Web and Data Security with Device Management

News Release Archive — Wed, 29 Feb 2012 13:35:00 GMT

Only mobile security solution that combines web security, data security, malicious app and mobile malware protection, with MDM features SAN FRANCISCO, Feb. 29, 2012 /PRNewswire/ -- RSA CONFERENCE – BOOTH # 1332 -- More than half of the organizations recently surveyed report that unsecure mobile devices have caused data loss. Websense now makes it safe to go mobile by adding Websense® TRITON™ Mobile Security to the highly effective TRITON suite of offerings. Websense TRITON Mobile Security combines four key elements. First, content aware data security features prevent confidential data loss on iPads, iPhones, Android, and other mobile devices. Second, it provides real-time web and application security, policy controls, and reporting for added visibility into the mobile risk profile. Third, it prevents malicious app downloads and blocks mobile malware. And finally, it includes mobile device management (MDM). "Today's mobile platforms put unprecedented power and information into the hands of end users. That opens a huge door for data theft and loss," said John McCormack, president, Websense. "As mobile devices become more pervasive and more employees bring their own smartphones and tablets to work, IT is being challenged like never before. They need to immediately protect data, and they need to establish and enforce security practices and policies. The new capabilities of the Websense TRITON Mobile Security solution go way beyond simple mobile device management to keep confidential information safe. Simply put, IT needs a solution that addresses data security and not just the device." The new Websense TRITON Mobile Security solution controls mobile device security, risk, and compliance on mobile wireless networks and public Wi-Fi networks. Unlike MDM offerings, Websense integrates leading web, email, data, and mobile security with the award-winning and highly effective Websense TRITON platform . With Websense TRITON Mobile Security, customers can confidentially enable the business while helping prevent data loss and IP theft, increasing productivity, reducing network exposure to vulnerabilities, and remaining compliant. It delivers mobile security via the cloud for remote workers anytime and anywhere. Reporting and controls, which are part of the unified TRITON management console, provide customers visibility into their mobile risk profile for devices, apps, data, and user activity. This visibility will include insight on which devices are connecting to the corporate network and to confidential information, what apps are on the devices, and what web activity and cloud applications may have put data at risk. 5 Characteristics of an Effective Mobile Security Solution Data security — Users are protected in real-time from data theft by cloud defenses with inline contextual analysis from within the Websense Advanced Classification Engine (see below). ACE uses composite risk scoring and real time analytics to deliver the most effective security available. It provides containment by analyzing inbound and outbound traffic that detects data-stealing attacks, mobile malware, malicious mobile apps, and updates. Web security — Web security protection includes blocking social lures, redirects to exploit kits, malware dropper files, and call-home communications. This protection is combined with controls for web applications and categories. Mobile DLP for email — Websense mobile DLP enables enterprise DLP controls for any mobile device. Email content and attachments that are considered high risk for mobile device access and storage are replaced with an administrator-configured email notice. MDM —Websense uniquely combines leading web and data security with MDM features including remote lock/wipe, password enforcement, app controls, and reporting. Compliance, policies, and reporting — The TRITON architecture provides a unified console to manage web, email, data, and mobile security policies to reduce administrative overhead and operational costs. Granular policies for users and groups provide support for enterprise-issued mobile devices and BYOD (bring-your-own-device) environments. The proven security effectiveness of the Websense TRITON Mobile Security solution is based on ACE (the Advanced Classification Engine). Real-time inline contextual defenses within ACE use security, data, and content classifiers that adjust dynamically, based on composite risk scoring, for the most effective security available. Security intelligence and analytics in ACE come from the ThreatSeeker™ Network, which unites more than 850 million end points and analyzes 3-5 billion requests per day from social networks, websites, and email. Mobile app research on hundreds of thousands of apps also enables machine learning and analytics on permissions, commands, authorship, and other characteristics for effective mobile app security. Websense TRITON Mobile Security is part of the Websense TRITON solution. The TRITON solution also offers unified web, email, mobile, and data loss prevention (DLP) security. They can be bundled together or purchased as standalone packages. They are available in enterprise-grade appliances, as cloud-based services, and as powerful and efficient hybrids of on-premise and cloud elements working together. Learn more about the Websense TRITON Mobile Security solution and Websense TRITON solution . To hear more about Websense current and future mobile roadmap, please visit booth #1332 at the RSA Conference . About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, mobile security, and data loss prevention (DLP), delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense, Inc....(read more)

Survey Says 51 Percent of Organizations Lose Data Through Mobile Devices, 59 Percent of Employees Dodge Security Controls

News Release Archive — Wed, 29 Feb 2012 13:05:00 GMT

Mobile devices help business, but security is needed to prevent costly data loss SAN FRANCISCO, Feb. 29, 2012 /PRNewswire/ -- RSA CONFERENCE -- BOOTH # 1332 -- A new " Global Study on Mobility Risks " reveals that corporate mobile devices and the bring-your-own-device (BYOD) phenomenon are rapidly circumventing enterprise security and policies. Seventy-seven percent of more than 4,000 respondents in 12 countries agree that the use of mobile devices in the workplace is important to achieving business objectives. But 76 percent also believe that these devices put their organizations at risk—and only 39 percent have the necessary security controls to address the risk. "IT has spent years working on desktop security and trying to prevent data loss over web and email channels—but mobile devices are radically changing the game," said Tom Clare, senior director of Product Marketing Management. "Tablets and iOS devices are replacing corporate laptops as employees bring-their-own-devices to work and access corporate information. These devices open the door to unprecedented loss of sensitive data. IT needs to be concerned about the data that mobile devices access and not the device itself." According to a previous Ponemon Institute survey, IT respondents said 63 percent of breaches occurred as a result of mobile devices. And only 28 percent said employee desktop computers were the cause.(i) Today's research, conducted by the Ponemon Institute© and sponsored by content security provider Websense, Inc. ® (NASDAQ: WBSN), is designed to help IT security professionals plan for an increasingly mobile workforce. The research shows that organizations often don't know how and what data is leaving their networks through non-secure mobile devices. Traditional static security solutions such as antivirus (AV), firewalls, and passwords are not effective at stopping advanced malware and data theft threats from malicious or negligent insiders. To safely permit corporate use of mobile devices, Websense today released its new Websense TRITON Mobile Security solution. It combines four key components (web security, data security, mobile malware and app protection, and vital mobile device management features) into one solution. As a cloud security service, available anytime anywhere, it prevents confidential data loss on iPads, iPhones, Android, and other mobile devices. More than 4,600 IT and IT security practitioners in Australia, Brazil, Canada, France, Germany, Hong Kong, India, Italy, Mexico, Singapore, United Kingdom, and the United States were surveyed. With an average of 10 years' experience in the field, fifty-four percent are supervisors (or above) and 42 percent are from organizations with more than 5,000 employees. This survey defines mobile devices as laptops, USB drives, smartphones, and tablets. Key findings Fifty-nine percent of respondents report that employees circumvent or disengage security features, such as passwords and key locks, on corporate and personal mobile devices. During the past 12 months, 51 percent of the organizations in this study experienced data loss resulting from employee use of insecure mobile devices, including laptops, smartphones, USB devices, and tablets. Seventy-seven percent of respondents agree that the use of mobile devices in the workplace is important to achieving business objectives. A similar percentage (76 percent) believes that these tools put their organizations at risk. Only 39 percent have the necessary security controls to address the risk, and only 45 percent have enforceable policies. Insecure mobile devices increase rates of malware infections. Fifty-nine percent of respondents say that over the past 12 months, their organizations experienced an increase in malware infections as a result of insecure mobile devices in the workplace, with another 25 percent unsure. Sixty-five percent of respondents are most concerned with employees taking photos or videos in the workplace -- probably due to fears about the theft or exposure of confidential information. Other unacceptable uses include downloading and using internet apps (44 percent) and using personal email accounts (43 percent). Forty-two percent say that downloading confidential data onto devices (USB or Bluetooth) is not acceptable in their organizations. Websense cloud security services protect remote users anytime and anywhere, including mobile devices and laptops. Endpoint protection on the laptop includes data encryption with portal decryption for USB drives to securely share information between users. Quotes "This survey shows that organizations need a safe way to manage their mobile devices," said Tom Clare, senior director of Product Marketing Management. "Websense saw that need and developed our new Websense TRITON Mobile Security solution. We think we are the only vendor that addresses the security gaps detailed in the survey. We take mobile security to the next level by combining device management (MDM) with real-time protection from data loss, dynamic web threats, mobile malware, and malicious mobile apps." "We asked thousands of IT security professionals and mobile devices were overwhelmingly important to business objectives," said Dr. Larry Ponemon, chairman and founder of the Ponemon Institute. "However, mobile devices put organizations at risk—risks that they do not have the necessary security controls and enforceable policies to address. It's also clear that employees are deliberately disabling security controls, which is a serious concern." Multimedia Elements: A full copy of the Websense "Global Study on Mobility Risks" can be downloaded here . Click to share the Websense "Global Study on Mobility Risks" on Facebook. Click to share on Twitter : New survey finds 51 percent of businesses lost data through mobile devices http://ow.ly/9jBHo @Websense Websense Links: Facebook: "Like" Websense . Twitter: Follow @Websense. (i) Source: Ponemon Institute "Perceptions about Network Security" by Ponemon Institute, June 2011. About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, mobile security, and data loss prevention (DLP), delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or SaaS-based cloud services, Websense content security solutions help organizations leverage social media and cloud-based communication, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense, Inc....(read more)

Websense Extends Security Leadership with High-Performing X-Series Modular Chassis that Scales for Large Enterprises and Prevents Data Loss

News Release Archive — Tue, 14 Feb 2012 13:05:00 GMT

Only solution that provides aggressive real-time web and data security on a scalable modular chassis with 10G interfaces for up to 100,000 users SAN DIEGO, Feb. 14, 2012 /PRNewswire/ -- Large enterprises and service providers urgently need a scalable way to stop advanced malware and data theft that is easily evading first-generation web proxies. Content security leader Websense has the answer—the new Websense® X10G model . It is a highly available and scalable system with critical real-time data-aware contextual defenses, which are applied to all inbound and outbound requests, and that defend against advanced malware and prevent intellectual property theft. "The new Websense X10G will be well received by Fortune 500 customers because it has the performance and scale that they need to be secure given the realities of today's threats," said Jeff Wilson, principal security analyst for Infonetics Research. "Websense is improving security technology by examining web and data content as it attempts to enter and leave an organization. The company continues to innovate and deliver security technology that protects organizations from the latest malware while proving its proficiency in data theft protection. Real-time malware security that isn't based on static updates is a must-have to combat today's cybercriminals." In the new Websense X-Series product line, the Websense X10G modular chassis architecture goes beyond traditional legacy web gateways that rely on antivirus (AV) and static URL filtering. Through the Websense TRITON architecture , the X10G is unmatched in its ability to correlate unified security intelligence in real time for multiple classifiers such as security, data, and content for all requests. It also allows IT to set policies once across platforms and provides a "single pane of glass" for management and reporting. "Websense is the established leader in web and data security and the X10G is targeted to address the unique security needs of large enterprises and service providers with its market-leading performance, linear scalability, and aggressive real-time security that is unmatched," said John McCormack, president, Websense. "First generation proxies and firewalls are no match for the targeted attacks and dangerous malware that cybercriminals unleash against organizations. The Websense X10G and TRITON architecture gives you the unique choice to deploy on-premise appliances and leverage cloud security services to protect against the latest threats and keep confidential data safe. Aggressive security on all requests, with unique security intelligence from the Websense ThreatSeeker® Network, and industry-leading performance and availability isn't something our competitors can offer." Before the X10G, organizations with a large volume of users and network traffic had to settle on a reduced security posture to not jeopardize network availability. Now, any global organization can use the X10G in their headquarters, and protect remote workers and small branch offices with a unified cloud delivery capability. The X10G model supports up to 16 blades, so it can scale from 10,000 to 100,000 users per chassis. No other solution: provides real-time composite risk scoring of security, data, and content classifiers combined with real-time cloud security intelligence and analytics embeds enterprise-class DLP for data-aware contextual security policies classifies individual social networking and other web 2.0 pages in real time across all policy categories unifies management of cloud and on-premise deployment options for a "single pane of glass" administration experience with policy re-use The new Websense X10G supports the award-winning Websense TRITON architecture, which over the past three years has unified web, email, and data security across cloud, on-premise, and unique hybrid deployments. Websense technology innovation and leadership has also been recognized by numerous industry analysts. For example, Gartner, Inc. positioned Websense as a leader in its " Magic Quadrant for Content-Aware Data Loss Prevention "(i) and " Gartner Magic Quadrant for Web Security Gateway ."(ii) The proven security effectiveness of the TRITON solution is based on ACE (the Websense Advanced Classification Engine) . ACE integrates real-time security, data, and content analysis into composite assessments. These assessments are based on real-time security intelligence and analytics from the Websense ThreatSeeker® Network —which contains more than 850 million end points covering social networking, blogs, email, and web traffic. It is the largest security intelligence network on the web. The X10G model and the TRITON architecture are also backed by Websense support services, which have won numerous awards, including Association of Support Professionals (ASP) 2011 and 2010 awards for "The Year's Ten Best Support Web Sites", plus Service Capability & Performance (SCP) Support Standard certification. Learn more about the Websense X10G model and Websense TRITON solution . (i) Source: Gartner, Inc. " Magic Quadrant for Content-Aware Data Loss Prevention" by Eric Ouellet and Rob McMillan, August 10, 2011. (ii) Source: Gartner, Inc. "Magic Quadrant for Secure Web Gateway" by Lawrence Orans and Peter Firstbrook, May 25, 2011. About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, and data loss prevention (DLP) solutions, delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or Security-as-a-Service (SaaS), Websense content security solutions help organizations leverage web 2.0 and cloud-based communication, collaboration, and social media, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense...(read more)

Websense to Host 8th Annual Financial Analyst Briefing

News Release Archive — Mon, 13 Feb 2012 21:05:00 GMT

SAN DIEGO, Feb. 13, 2012 /PRNewswire/ -- Websense, Inc. (NASDAQ: WBSN), a global leader in unified web, data and email security solutions, today announced that the company will host its Eighth Annual Financial Analyst Briefing in conjunction with the 2012 RSA Conference in San Francisco on February 28, 2012, beginning at 9 a.m. PT. Gene Hodges, CEO, and other Websense executives will discuss the company's growth opportunities, product offerings, competitive position, and financial model. Also featured will be case studies by two Websense customers on the deployment and effectiveness of their Websense® TRITON™ content security solutions. To register for the event, visit http://investor.websense.com/events.cfm . In addition, a live webcast of the event may be accessed on the internet at http://investor.websense.com/ . About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security , email security , and data loss prevention (DLP) solutions, delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as software, appliance and Security-as-a-Service (SaaS), Websense content security solutions help organizations leverage web 2.0 and cloud communication, collaboration, and social media while protecting from advanced persistent threats, preventing the loss of confidential information and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense INVESTOR CONTACT: MEDIA CONTACT: Kate Patterson Patricia Hogan Websense, Inc. Websense, Inc. (858) 320-8072 (858) 320-9393 kpatterson@websense.com phogan@websense.com SOURCE Websense, Inc....(read more)

Websense #1 in Web Security Fourth Year in a Row

News Release Archive — Thu, 09 Feb 2012 13:05:00 GMT

Leading market research firm recognizes Websense appliances and software; lauds superior web security intelligence and threat/data loss defenses SAN DIEGO, Feb. 9, 2012 /PRNewswire/ -- For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 – 2015 Forecast and 2010 Vendor Shares report . "Websense foresaw that web security, email security, and data loss prevention are inextricably linked. And the integrated Websense® TRITON™ technology was built to address all three as 'content security'," said Phil Hochmuth, program manager of Security Products at IDC. "The company's web security leadership has been solidified by continued innovation and commitment to security effectiveness." The IDC report notes that Websense has: Definitive market leadership, with 18 percent web security market share, which is more than twice the nearest competitor. The number one share in web security software and appliances. Mastered the integration of the three pillars of content security—web, email/messaging, and data loss prevention (DLP)—with its TRITON platform, through which each respective content security feature can be deployed and centrally managed. Superior web security intelligence for inbound threats and outbound risks with the Websense Advanced Classification Engine and the Websense TRITON solutions . Tens of thousands of customers worldwide rely on Websense content security. The company's flagship Websense TRITON solutions offer unified web, email, and data security together or as standalone packages. The TRITON solution is available in enterprise-grade appliances, as cloud-based services, and as powerful and efficient hybrids of on-premise and cloud elements working together. Only Websense supports a hybrid cloud/on-premise architecture that features unified threat analysis and a single management console with unified inbound and outbound controls. No other vendor offers a similar level of security effectiveness and ease of deployment and use. "Websense makes it easy for us to secure our data and increase productivity," said Ben Schoenecker, information security specialist for AllSouth Federal Credit Union. "We hold very sensitive financial information, so we need a solution that keeps us protected from the latest web threats, has DLP built in, and maximizes staff productivity. Websense Web Security Gateway Anywhere does all of that—on-premise and in the cloud. It is obvious why Websense leads the market." For more information about Websense TRITON solutions and Websense Web Security Gateway, please visit: http://www.websense.com/content/TRITON-solutions.aspx . About Websense, Inc. Websense, Inc. (NASDAQ: WBSN), a global leader in unified web security, email security, and data loss prevention (DLP) solutions, delivers the best content security for modern threats at the lowest total cost of ownership to tens of thousands of enterprise, mid-market and small organizations around the world. Distributed through a global network of channel partners and delivered as appliance-based software or Security-as-a-Service (SaaS), Websense content security solutions help organizations leverage web 2.0 and cloud-based communication, collaboration, and social media, while protecting from advanced persistent threats and modern malware, preventing the loss of confidential information, and enforcing internet use and security policies. Websense is headquartered in San Diego, California with offices around the world. For more information, visit www.websense.com . Follow Websense on Twitter: www.twitter.com/websense Join the discussion on Facebook: www.facebook.com/websense Websense Media Contact: Patricia Hogan Websense, Inc. (858) 320-9393 phogan@websense.com SOURCE Websense, Inc....(read more)