Websense Climbs on Sales Outlook

The software company expects fourth-quarter billings to be in the range of $69 million to $72 million.
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Shares of

Websense

(WBSN)

continued climbing Wednesday, a day after the software firm posted third-quarter earnings results and gave strong billings guidance.

Third-quarter net income was $8.5 million, or 18 cents a share, down from the $10.1 million, or 21 cents a share, it posted in the third quarter last year. Excluding expenses, the company generated net income of $11.5 million, or 25 cents a share. Analysts, on average, were looking for earnings of 23 cents a share, according to Thomson First Call.

Websense reported third-quarter revenue of $46.1 million, up from the $38.3 million it generated in the prior-year period. Analysts were looking for $46.1 million in revenue.

Looking forward, the company expects to report fourth-quarter earnings of 16 to 17 cents a share and 24 to 25 cents, excluding expenses. Analysts are looking for an average 24 cents a share in the fourth quarter.

Billings for the third quarter were $53.3 million, an increase of 13 percent from the third quarter of 2005. The company expects fourth-quarter billings to be in the range of $69 million to $72 million.

Shares traded up in after-hours trade and opened higher Wednesday. They were recently up another $3.15, or 13.7%, at $26.14.