Blue Coat Reports Financial Results for Fourth Quarter and Year Ended April 30, 2009
Net revenue for the fiscal year ended April 30, 2009 was $445 million, an increase of 46% when compared to net revenue of $305 million for the fiscal year ended April 30, 2008. Excluding net revenue associated with Packeteer, net revenue for fiscal 2009 was $356 million, an increase of 16% compared to net revenue of $305 million in fiscal 2008.
"I am pleased with our team's ability to execute in the midst of a difficult economic environment," said Brian NeSmith, President and Chief Executive Officer, Blue Coat Systems. "Our Application Delivery Network value proposition, coupled with the mission-critical nature and compelling ROI of our products, positions us well in challenging times."
"Looking back on the year, I believe we had a strong fiscal 2009. In a fairly short period of time, Blue Coat has evolved to be a leader in WAN optimization and extended its leadership position in the secure Web gateway market."
On a GAAP basis, the Company reported net loss of $3 million, or $(0.09) per share, in the fourth quarter of fiscal 2009, compared to net income of $12 million, or $0.32 per diluted share, in the fourth quarter of fiscal 2008, and net income of $1 million, or $0.02 per diluted share, in the third quarter of fiscal 2009.
For the fiscal year 2009, the Company reported net loss of $9 million, or $(0.22) per share, compared to net income of $33 million, or $0.82 per diluted share, in fiscal 2008.
The Company reported non-GAAP net income of $8 million, or $0.19 per diluted share, in the fourth quarter of fiscal 2009, compared to non-GAAP net income of $13 million, or $0.33 per diluted share, in the fourth quarter of fiscal 2008, and non-GAAP net income of $9 million, or $0.21 per diluted share, in the third quarter of fiscal 2009.
For the fiscal year 2009, the Company reported non-GAAP net income of $36 million, or $0.84 per diluted share, compared to non-GAAP net income of $49 million, or $1.24 per diluted share, in fiscal 2008.
Non-GAAP net income generally excludes charges related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and assumes a long term effective tax rate of 30% on non-GAAP pre-tax income. A discussion of non-GAAP financial measures is provided under the section "About Non-GAAP Financial Measures" later in this press release. A detailed reconciliation of the GAAP to non-GAAP financial measures is included in Table 2 of this press release.
The Company ended the quarter on April 30, 2009, with cash, cash equivalents, and restricted cash of $115 million, an increase of $3 million from the prior quarter. Cash flow provided by operations in the fourth quarter of fiscal 2009 was $5 million and $58 million for the year ended April 30, 2009.
For the first quarter ending July 31, 2009, the company is currently planning net revenue in the range of $114 to $119 million. On a GAAP basis, the Company expects net income of $0.03 to $0.08 per diluted share. On a non-GAAP basis, the Company expects net income of $0.20 to $0.25 per diluted share.
About Non-GAAP Financial Measures
The Company uses non-GAAP financial measures of income for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted net income per share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be different from non-GAAP financial measures used by other companies. The Company believes that these measures provide useful information to its management, board of directors and investors regarding its ongoing operating activities and business trends related to its financial condition and results of operations. The Company believes that it is useful to provide investors with information to understand how specific line items in the statement of operations are affected by certain items, such as the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and income tax adjustments. In addition, the Company's management and board of directors use certain non-GAAP financial measures in developing operating budgets and in reviewing the Company's financial results of operations, since items such as expense related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and income tax adjustments do not impact its current resource allocation decisions. Additionally, the Company believes that inclusion of these non-GAAP financial measures provides consistency and comparability with its past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating income, net income/loss and net income/loss per share.
Conference Call & Webcast
The Company will hold its quarterly conference call to discuss results for the fourth quarter and fiscal year 2009 and the outlook for the first quarter of fiscal 2010 on Tuesday, June 2, 2009. The conference call will begin 2:00 Pacific and can be accessed through an audio webcast from the company's website, www.bluecoat.com/company/investorrelations, or through a dial-in phone conference at (800) 230-1951 (toll-free in the US) or (612) 288-0329. In addition, a replay of the call will be available beginning 4:00 p.m. Pacific on June 2, 2009 through June 16, 2009 at (800) 475-6701 (toll-free in the US) or (320) 365-3844, both with the access code 103195.
Blue Coat Financial Statements http://www.bluecoat.com/files/docs/Q409PressReleaseTables_0529.pdf
FORWARD LOOKING STATEMENTS: This document contains certain forward looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements including: statements regarding our business outlook, future financial and operating results; any statements of expectation or belief; any statements regarding plans, strategies and objectives of management for future operations; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the risks that are described from time to time in the Securities and Exchange Commission reports filed by the Company, including but not limited to the risks described in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. The Company assumes no obligation and does not intend to update these forward-looking statements except as required by applicable law after the date on which it was made.
Blue Coat Systems GmbH
Blue Coat Systems, Inc. is the technology leader in Application Delivery Networking. Blue Coat offers an Application Delivery Network Infrastructure that provides the visibility, acceleration and security required to optimize and secure the flow of information to any user, on any network, anywhere. This application intelligence enables enterprises to tightly align network investments with business requirements, speed decision making and secure business applications for long-term competitive advantage. For additional information, please visit www.bluecoat.com.