Blue Coat Reports Q1 Results

SUNNYVALE, Calif. -- Blue Coat Systems, Inc. (NASDAQ:BCSI), the leader in WAN Application Delivery and Secure Web Gateway, today reported its financial results for its first quarter of fiscal 2009 ended July 31, 2008. Total net revenue for the first fiscal quarter of 2009 was $102.5 million, an increase of 64% compared to net revenue of $62.4 million for the same quarter last year and a 16% increase compared to net revenue of $88.2 million in the immediately preceding quarter. Excluding net revenue associated with the acquisition of Packeteer, Inc. on June 6, 2008, net revenue for the first fiscal quarter of 2009 was $86.4 million.

On a GAAP basis, the Company reported a net loss of $5.8 million, or ($0.15) per diluted share, in the first quarter of fiscal 2009, compared to net income of $12.5 million, or $0.32 per diluted share in the fourth quarter of fiscal 2008.

The Company reported non-GAAP net income of $6.8 million, or $0.16 per diluted share, in the first quarter of fiscal 2009, compared to non-GAAP net income of $13.1 million, or $0.33 per diluted share, in the fourth quarter of fiscal 2008. Non-GAAP net income includes $4.8 million of expense for integration activities related to the acquisition of Packeteer. Non-GAAP net income excludes $6.1 million in expense related to the write-up of acquired inventory to its assessed fair value, $4.2 million in stock-based compensation expense, $2.1 million in amortization of intangible assets, $1.5 million in restructuring expense related to severance costs, and $0.7 million in expenses associated with matters related to the stock option investigation. Non-GAAP net income includes $2.1 million in additional income tax expense based on a 30% effective tax rate applied to non-GAAP pre-tax income. In the fourth quarter of fiscal 2008, non-GAAP net income excluded $4.0 million in stock-based compensation expense, $0.4 million in amortization of intangible assets and $1.3 million in expenses associated with matters related to the stock option investigation. Also excluded from non-GAAP net income in the fourth quarter of fiscal 2008 was a net tax benefit on a GAAP basis of $3.6 million related to the partial reversal of a valuation allowance on deferred tax assets, partially offset by a charge related to the implementation of a new global business structure. Non-GAAP net income also included $1.5 million in additional income tax expense based upon our effective tax rate.

Now that we have completed the acquisition of Packeteer we are focusing on integrating the two companies into a single organization and reaping the cost, management, technology, and market synergies,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “We remain unique with a combination of technologies for WAN and Internet gateway visibility, acceleration and security that solves the growing application delivery challenges faced by enterprises and organizations.”

Blue Coat Systems Inc.