Websense's Profit Slips

Updated from 5:06 p.m. EDT

First-quarter profit at IT security company Websense was cut in half, but the company beat analysts' expectations and guided in-line for the current quarter.

Net income fell to $3.9 million, or 9 cents a share, from $7.9 million, or 16 cents a share, in the first quarter of 2006.

Excluding expenses and acquisition related costs, the company earned $9.6 million, or 21 cents a share.

Revenue for the quarter was up about 18% to $49.7 million.

Analysts polled by Thomson First Call were expecting earnings of 20 cents a share on revenue of $49 million.

During the quarter, Websense incorporated its acquisition of private company PortAuthority Technologies into a data loss and information leak prevention product called Websense Content Protection Suite. Net billings of $42.5 million in the first quarter reflected $1 million of billings from that product.

International revenue increased to 39% of total revenue, up from 35% from same time last year. "I think the Street is underestimating the international growth," said Websense CEO Gene Hodges in a conference call with investors. "We think there is still potential for extended growth there which should help us achieve our overall long-term growth target."

International revenue will approach almost half the company's revenue by the end of next year, said Hodges.

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