Blue Coat Systems (BCSI)
Q4 2011 Earnings Call
May 26, 2011 5:00 pm ET
Jane Underwood - Senior Director for investor relations
Gordon Brooks - Chief Financial Officer, Principal Accounting Officer and Senior Vice President
Michael Borman - Chief Executive Officer, President and Director
Scott Zeller - Needham & Company, LLC
Jess Lubert - Wells Fargo Securities, LLC
Erik Suppiger - Signal Hill Capital Group LLC
Ryan Hutchinson - Lazard Capital Markets LLC
Daniel Ives - FBR Capital Markets & Co.
Woo Jin Ho - Merrill Lynch
Rajesh Ghai - ThinkEquity LLC
Jack Monti - UBS Investment Bank
Douglas Ireland - JMP Securities LLC
Gary Spivak - Noble Financial Group, Inc.
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Ladies and gentlemen, good afternoon. Thank you for standing by, and welcome to the Blue Coat Systems Fourth Quarter Results Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Vice President of Investor Relations, Ms. Jane Underwood. Please go ahead.
Good afternoon, and thank you for joining us to discuss Blue Coat's financial results for the fourth quarter of fiscal year 2011. With me on today's call are Mike Borman, our President and Chief Executive Officer; and Gordon Brooks, our Chief Financial Officer.
Before I turn the call over to Gordy, let me remind you that during the course of this call, we will make forward-looking statements about Blue Coat Systems, Inc. These include statements regarding expectations concerning market growth and business opportunities, including levels of IT spending; expectations regarding future revenues, expenses, margins, profits, tax rates and other financial metrics; plans to develop and offer new products and services and enter new markets; market trends and customer requirements; success of our business strategy; go-to-market executions and changes in our business model and operations; and other matters impacting Blue Coat's financial outlook for future business.
All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements, including any statements of expectation or belief and any statements of assumptions underlying any of the foregoing risks, uncertainties and assumptions including the risks that are described from time to time in the reports filed by Blue Coat with the Securities and Exchange Commission, including but not limited to the risks described in Blue Coat's annual report on 10-K for the year ended April 30, 2010, and its quarterly report on 10-Q for the quarter ended January 31, 2011.
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, what impact they will have on the results of operations or financial condition of Blue Coat. Blue Coat assumes no obligation and does not intend to update these forward-looking statements except as required by applicable law.
Now, I'd like to turn the call over to Gordy.
Thank you, Jane. Good afternoon. To begin, Mike and I are very disappointed in our results for the quarter and our guidance into Q1. Before I provide context for guidance, let me review the financial results for the quarter and the fiscal year.
Net revenue for fiscal Q4 was $121 million, a decrease of 2% sequentially and a decrease of 9% compared with the same quarter a year ago. Net revenue for the fiscal year ended April 30, 2011, was $487 million, a decrease of 2% compared with a net revenue of $496 million for the fiscal year ended April 30, 2010.
Product revenue for fiscal Q4 was $70 million, a decrease of 5% from the prior quarter. PacketShaper product revenue was $13 million, an increase of 7% sequentially. MACH5 product revenue was $8 million, an increase of 15% sequentially and 78% year-over-year. Lastly, Blue Coat WebFilter was $4 million.
Product revenue for 2011 was $292 million, a decrease of 9% from fiscal 2010. For the year, PacketShaper product revenue was $49 million. MACH5 revenue was $27 million, an increase of 84%. And Blue Coat WebFilter was $21 million.
Service revenue, which is primarily comprised of revenue related to support and maintenance contracts, was $51 million, an increase of 3% sequentially and 14% compared with the same quarter a year ago. PacketShaper service revenue was $9 million, and Blue Coat WebFilter service revenue was $3 million.
Service revenue for fiscal 2011 was $195 million, an increase of 12% over fiscal year 2010. For the year, PacketShaper service revenue was $37 million, and Blue Coat WebFilter service revenue was $12 million.
On a geographic basis in Q4, net revenue in the Americas was $54 million and represented 45% of total revenue. Net revenue in EMEA was $43 million and represented 36% of total revenue. And net revenue in Asia Pac was $24 million and represented 19% of total revenue. Net revenue in the Americas decreased sequentially 2% and 8% compared with the same quarter a year ago. Net revenue in EMEA decreased 1% sequentially and 9% compared to the same quarter a year ago. And net revenue in Asia Pac decreased 3% sequentially and 11% compared to the same quarter a year ago.
On a geographic basis in fiscal 2011, net revenue in the Americas was $221 million and represented 45% of total revenue. Net revenue in EMEA was $170 million and represented 35% of total revenue. And net revenue in Asia Pac was $96 million and represented 20% of total revenue. Net revenue in the Americas was flat in fiscal 2011 compared with 2010. Net revenue in EMEA decreased 8% in fiscal 2011 compared to fiscal 2010. And net revenue in Asia Pac increased 6% in fiscal 2011 compared to fiscal 2010.