Blue Coat Reports Financial Results for Fourth Quarter and Year Ended April 30, 2009

Blue Coat Reports Financial Results for Fourth Quarter and Year Ended April 30, 2009

Blue Coat Systems, Inc. (NASDAQ: BCSI), the technology leader in Application Delivery Networking, today reported its financial results for its fourth quarter and fiscal year ended April 30, 2009.  Total net revenue for the fourth quarter of fiscal 2009 was $114 million, an increase of 29% compared to net revenue of $88 million in the same quarter last year, and an increase of 4% compared to net revenue of $110 million in the immediately preceding quarter.  Excluding net revenue associated with Packeteer, net revenue for the fourth quarter of fiscal 2009 was $89 million, an increase of 1% compared to net revenue of $88 million in the same quarter last year, and an increase of 3% compared to net revenue of $86 million in the immediately preceding quarter.

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.â€Â  

“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.â€Â 

 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.

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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.

Financial Outlook

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.