IT security company Websense ( WBSN) beat analysts' expectations for the fourth quarter and guided higher for the fiscal year 2008 on increased renewals from its existing customers. However for the fourth quarter it reported a net loss of $26.9 million, or 59 cents a share in the quarter, compared with an income of $7.7 million, or earnings of 17 cents a share, a year ago largely due to acquisition related charges and write-offs stemming from its purchase of U.K.- based company SurfControl last year. Excluding charges, net income was $12.8 million, or 28 cents a share, which was higher than analysts' expectations of 23 cents a share, and 3 cents higher than its EPS a year ago. Revenue for the quarter was $86.2 million compared with $47.33 million a year ago. Analysts were expecting earnings of $78.14 million. Shares of Websense were up $1.50, or 8.7%, to $18.50 in recent extended trading. The company's better-than-anticipated billings and its increased receivable collections helped generate strong cash flow during the quarter and helped the company pre-pay $20 million on the credit facility used to acquire SurfControl, said Websense. The move reduces its outstanding acquisition-related debt to $190 million. Billings for the fourth quarter were $108.6 million, which represents the full amount of subscription contracts billed to customers during the period, including subscription contracts billed to SurfControl customers. Fourth-quarter billings included about $2.2 million in billings for its data loss prevention solution, and about $5 million in billings for hosted security services. "Given our improved outlook for 2008, we expect we will continue to make pre-payments on the debt as well as resume limited share repurchases," said Dudley Mendenhall, Websense chief financial officer. For the fiscal year 2008, Websense expects revenue to range between $325 million and $335 million and earnings, excluding charges, of $1.15 to $1.25 a share. Analysts are expecting revenue of $309.50 and earnings of $1.15 a share. The company expects billings to range from $345 million to $355 million during the year.