IT security company Websense ( WBSN) beat analyst expectations for the third quarter but said it is dropping quarterly guidance for the next fiscal year because of accounting problems stemming from a key acquisition. Websense, which offers web filtering and management products that prevent data leaks, said third-quarter net income was $6.4 million, or 14 cents a share, compared to $8.3 million, or 18 cents a share in the year-ago quarter. Excluding acquisition-related and other charges, net income fell 3% to $10.9 million, or 24 cents a share, from $11.3 million, or 25 cents a share, a year ago. Analysts polled by Thomson Financial were expecting earnings of 22 cents a share. The decline in net income stemmed from charges related to its acquisition of data leak prevention company Port Authority in January and a shift in its distribution model. Revenue rose 10% to $50.4 million, compared to $45.7 million a year ago. Analysts were expecting revenue of $50.5 million. Third-quarter revenue is net of approximately $950,000 in marketing payments and rebates to channel partners. Websense said it will not offer quarterly guidance beginning with fiscal year 2008 and will update its annual guidance on a quarterly basis. "Quarterly variations are difficult to predict and not the best way to manage the business," Dudley Mendenhall, chief financial officer of Websense told analysts on a conference call.