Websense Reports Record Second Quarter Revenues

PRESS RELEASE

SAN DIEGO, July 26, 2011 /PRNewswire/ --Websense, Inc. (NASDAQ: WBSN) today announced financial results for the second quarter of 2011. Commenting on the company's performance and outlook for the remainder of 2011, Websense CEO Gene Hodges said,

"We delivered solid second quarter results, with incremental billings up 12 percent and renewal billings up one percent from a year ago. Overall, retention improved from last year and demand for our TRITON(TM) web, email, and data security solutions increased in the wake of multiple high-profile data-stealing attacks. As a result, sales of TRITON solutions continued to accelerate compared with prior quarters and the average annual contract value increased nearly 20 percent from a year ago."

"Billings for solutions which included data security increased nearly 200 percent as a record number of customers purchased data loss prevention-enabled versions of our TRITON-based gateways. These positive trends support our assessment that our product strategy is aligned to market requirements, our competitive position is strong, and we are well positioned to meet our objectives for the second half of 2011," added Hodges.

Referencing the company's revised guidance for end-user billings, Hodges acknowledged the impact of macro-economic factors in Europe and progress in the company's sales transformation process, "While most of our sales territories posted strong incremental billings growth in the second quarter, we continued to experience softness in a few regions around the world. This was most pronounced in continental Europe, which we attributed to our own execution and economic disruption. At the same time, there were multiple signs that sales productivity across the organization continued to improve. Looking ahead, we remain positive in our ability to leverage our technology leadership to generate increased end-user billings growth in the second half of the year and double-digit growth in 2012."