Websense Leads Web Security Market, Achieves Rapid Growth in SaaS Security

Websense, Inc. leads the worldwide Web security market for the seventh consecutive year and nearly doubled its share of the software-as-a-service segment of the Web security market in 2008, according to a recent report from research firm IDC.(1)

IDC again named Websense the leader in the overall Web security market, which comprises software, appliance and software-as-a-service (SaaS) Web security to protect against both inbound (malware) threats and outbound (data leakage) threats. Websense captured 26.2 percent of the 2008 worldwide market growth for Web security software and grew 96.3 percent in the SaaS Web security segment.

According to the report, the growing use of Web 2.0 tools by enterprises and an increasing number of mobile and remote workers have created both a risk of data leaks and new channels for malware. As these market drivers continue, IDC forecasts the worldwide Web security market to grow 12.3 percent from $1.4 billion in 2008 to $2.5 billion in 2013, with SaaS Web security being the fastest-growing segment. To balance the business value of Web 2.0 technologies with the security risks, organizations need real-time deep content analysis and classification, as well as data loss prevention technologies.

"Websense once again leads the pack in Web security and in 2008 grew its market share of the SaaS Web security segment as well," said Brian Burke, security program director, IDC. "Websense continues to develop its core strength in discovering and classifying content across all its product offerings and provides its customers visibility and management over their information in a Web 2.0 world to control where users and data can go online."

"Websense has long been the global leader in Web security and we're now extending our leadership and experience in on-premise software to the SaaS and appliance segments of the overall Web security market with our quickly growing

Hosted Web Security and Websense V10000 Web Security Gateway appliance offerings," said John McCormack, president, Websense.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Schedules Third Quarter 2009 Earnings Announcement and Conference Call

Websense, Inc. (NASDAQ: WBSN) plans to release its third quarter 2009 financial results before the market open on October 29, 2009.

Management will host a conference call and simultaneous webcast to discuss the final results at 6:00 a.m. Pacific Time. To participate in the conference call, investors should dial 888-503-8171 (domestic) or 719-457-2626 (international) ten minutes prior to the scheduled start of the call. A simultaneous audio-only webcast of the call may be accessed on the Internet at www.websense.com/investors.

To Purchase Websense Products Visit http://www.guardsense.com

NEW RESEARCH: Websense Security Labs Reports 671 Percent Increase of Malicious Sites

Websense, Inc. (NASDAQ: WBSN) today revealed the findings from its bi-annual research report "Websense Security Labs, State of Internet Security, Q1-Q2 2009." The full report can be downloaded at http://www.websense.com/threatreport. Major findings from the report, include:

-- Websense(R) Security Labs(TM) identified a 233 percent growth in the number of malicious sites in the last six months and 671 percent growth in the number of malicious sites during the last year.

-- In the first half of 2009, 77 percent of Web sites with malicious code are legitimate sites that have been compromised. This high percentage was maintained over the past six months due in part to widespread attacks including Gumblar, Beladen and Nine Ball which aimed to compromise trusted and known Web properties with massive injection campaigns.

-- Web 2.0 sites allowing user-generated content are a top target for cybercriminals and spammers. Websense Defensio(TM) technology enabled Websense Security Labs to identify that 95 percent of user-generated comments to blogs, chat rooms and message boards are spam or malicious.

-- Efforts to self police Web 2.0 properties have been largely ineffective. Websense research shows that community-driven security tools used on sites like YouTube and BlogSpot are 65 percent to 75 percent ineffective in protecting Web users from objectionable content and security risks.

-- The "dirty" Web is getting dirtier: 69 percent of all Web pages with content classified as objectionable (e.g. Sex, Adult Content, Gambling, Drugs) also had at least one malicious link. This is becoming even more pervasive, as 78 percent of new Web pages discovered in the first half of 2009 with objectionable content had at least one malicious link.

-- Websense Security Labs found that 37 percent of malicious Web attacks included data-stealing code, demonstrating that attackers are after essential information and data.

-- The Web continues to be the most popular vector for data-stealing attacks. In the first half of 2009 the Websense Security Labs found that 57 percent of data-stealing attacks are conducted over the Web.

-- The convergence of blended Web and email threats continues to increase. Websense Security Labs reports that 85.6 percent of all unwanted emails in circulation during this period contained links to spam sites and/or malicious Web sites.

-- In June alone, the total number of emails detected as containing viruses increased 600 percent over the previous month.

Every hour, Websense Security Labs ThreatSeeker(TM) Network scans more than 40 million Web sites and ten million emails for unwanted content and malicious code. Using more than 50 million real-time data collecting systems, ThreatSeeker Network monitors and classifies Web, email and data content -- providing Websense with unparalleled visibility into the state of content on the Internet and in email.

Quote:

Websense Chief Technology Officer Dan Hubbard -- "The last six months have shown that malicious hackers and fraudsters go where the people are on the Web -- and have heightened their attacks on popular Web 2.0 sites and continued to compromise established, trusted Web sites in the hope of infecting unsuspecting users. From malicious Twitter spam campaigns and blog comment spam to the massive injection attacks, those perpetrating fraud are exploiting the inherent trust users have of known Web properties and other users."

To Purchase Websense Products Visit http://www.guardsense.com

Websense to Revise OEM Royalty Revenue Recognition Policy

Websense, Inc. today announced it will correct its revenue recognition policy relating to its original equipment manufacturer (OEM) arrangements. The change affects the timing of royalty revenue recognized over a period of seven quarters from October 2007 through June 2009. The new policy is expected to decrease revenue recognized during the seven quarter period by an aggregate of $12.0 million to $16.0 million, or $8.0 million to $12.0 million, depending upon which of two potential revised accounting treatments is applied by the company, and increase deferred revenue as of June 30, 2009 by the same amount as the applicable decrease in recognized revenue. This change will not affect the company's fundamental business operations and does not affect billings, cash flow from operations, or the total amount of revenue that ultimately will be recognized on these OEM arrangements. These arrangements were acquired in connection with the company's purchase of SurfControl plc in October 2007. The company has been recognizing the royalty revenue consistent with the manner in which SurfControl recognized royalty revenue prior to its acquisition.

"We have always been committed to providing accurate, timely and transparent information to our stockholders," said Gene Hodges, Websense chief executive officer. "These accounting changes impact the timing of revenue recognition for a relatively small part of our total revenue and deferred revenue and have no impact on our fundamental outlook or our financial strength. We discovered this issue as a part of an examination of our OEM arrangements and as soon as we determined the need to revise our accounting policies, we made the information available to our stockholders."

As a result of this change, the company's financial statements for the fiscal years ended December 31, 2007 and 2008 and for the fiscal quarters ended March 31, 2008, June 30, 2008, September 30, 2008, March 31, 2009 and June 30, 2009 should no longer be relied upon. Similarly, the reports of the company's independent registered public accounting firm, Ernst & Young, related to these financial statements and to the effectiveness of the company's internal control over financial reporting for the related periods also should no longer be relied upon.

Under the revised royalty revenue recognition policy, the company will recognize royalty revenue ratably over a period of time specified under the terms of the OEM arrangements based on resale schedules provided by OEM partners. The company is currently considering two methods of recognizing the royalty revenue: (i) a Contract Term Method whereby the company recognizes the royalty revenue ratably over a period of time equal to the greater of the company's contractual obligations to its OEM partners or the specific subscription period for end customers under the OEM arrangements, and (ii) a Subscription Method whereby the company recognizes the royalty revenue ratably over the subscription term the OEM partner enters into with the end customer. The previous accounting recognized the full amount of royalty revenue when OEM partners reported product resales.

Based on a preliminary application of the revised revenue recognition policy to subscription data in the OEM partner resale schedules, if the company accounts for the OEM royalty revenue using the Contract Term Method, the company estimates the affect on its reported revenues to be within the following ranges for the periods identified:

Estimated Decrease in Reported
Fiscal Quarter Ended Revenue
-------------------------------------- -----------------------------------
December 31, 2007 $1.0-1.5 million
March 31, 2008 $2.0-2.5 million
June 30, 2008 $2.5-3.0 million
September 30, 2008 $1.5-2.0 million
December 31, 2008 $1.0-1.5 million
March 31, 2009 $3.0-4.0 million
June 30, 2009 $1.0-1.5 million


Based on a preliminary application of the revised revenue recognition policy to subscription data in the OEM partner resale schedules, if the company accounts for the OEM royalty revenue using the Subscription Method, the company estimates the affect on its reported revenues to be within the following ranges for the periods identified:

Estimated Decrease in Reported
Fiscal Quarter Ended Revenue
------------------------------------- ------------------------------------
December 31, 2007 $1.0-1.5 million
March 31, 2008 $1.5-2.0 million
June 30, 2008 $2.0-2.5 million
September 30, 2008 $0.5-1.0 million
December 31, 2008 $0.5-1.0 million
March 31, 2009 $2.0-3.0 million
June 30, 2009 $0.5-1.0 million


Management identified the need to change the OEM royalty revenue recognition policy, and the company's audit committee and management have discussed these matters with the company's independent registered public accounting firm, Ernst & Young LLP. Management is continuing its review of this matter to determine which accounting method is most appropriate and the final impact on the company's consolidated financial statements for each of the affected periods. The company's independent registered public accounting firm has not completed its audit of the estimates described above, and management may determine that additional adjustments are required as a result of its ongoing review. The company will issue restated financial statements reflecting the changed recognition of OEM royalty revenue as soon as practicable following completion of the review and related audit by our independent registered public accounting firm.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Tops Symantec and McAfee

Websense, Inc. the leader in content security solutions, today announced that Information Security™ magazine readers honored Websense solutions across Web, email and data security categories in the fourth annual Information Security magazine and SearchSecurity.com™ 2009 Readers' Choice Awards. Websense is the only security provider to be recognized in all three content security categories.

Websense® Data Security Suite was awarded the "Gold" in the Data Loss Prevention category over competing solutions from Symantec and McAfee. Information Security described why Websense was selected as the preferred solution stating, "Receiving top scores in all categories, the Websense Data Security Suite was lauded by readers for its ease of installation, configuration and administration, its scalability, and its comprehensive and flexible reporting. Perhaps most notable were its top rankings for vendor service and support, as well as ROI."

Websense Email Security and Websense Web Security Gateway were also recognized by the magazine's readers, receiving the "Bronze" award in the Email Security and Web Security Gateway categories. About Websense Email Security, Information Security wrote, "The Websense product impressed with its ability to block spam and phishing attacks and detect email-borne viruses and spyware." Regarding the Websense Web Security Gateway, the publication noted that the product "Provides extensive, multilayered protection from Web-based threats with a combination of Websense Web protection services and ThreatSeeker™ Network to guard Web sites and servers and continually scan the Internet for emerging threats. The product has comprehensive reporting capabilities, detailed policy creation and enforcement features and impressive threat detection capabilities, according to consumers."

A record number 1721 Information Security magazine and SearchSecurity.com readers voted to determine the market's best security products, rating 380 products and services in 17 different categories. Respondents were asked to rate each product based on criteria specific to each category.

Securing wins across all three content security categories further validates Websense leadership in the content security market. Websense is the only security company that independent analyst firm Forrester Research has named a leader in all three categories for content security suites: Web, email and data security. Specifically, Websense was named a leader in The Forrester Wave™: Web Filtering, Q2 2009(1) (April 2009), The Forrester Wave™: Email Filtering Q2 2009(2) (April 2009), and The Forrester Wave™: Data Leak Prevention, Q2 2008(3) (June 2008).

"We're honored that Information Security and SearchSecurity.com readers have voiced their preference for Websense solutions across Web, email and data categories and believe it validates our focus on protecting organizations' essential information from both inbound and outbound threats and from accidental or malicious loss," said Jim Haskin, CIO and senior vice president of marketing, Websense.

All Websense solutions, including Websense Web Security Gateway, Websense Data Security Suite, and Websense Email Security are powered by the Websense ThreatSeeker™ Network, which continuously monitors the Internet for changes and emerging Web threats. The resulting intelligence is incorporated in real-time into the company's Web, data and email security solutions. As a result, Websense solutions adapt to the rapidly changing Internet threat environment at speeds not possible for traditional security solutions.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Harnesses the Cloud for Software-as-a-Service Content Security

Websense, Inc. today announced that its Software-as-a-Service (SaaS) Email and Web security solutions reached a significant new milestone processing more than one and a half billion end-user security requests per day starting in August. This is coupled with the news that Websense is discovering and preventing more than

250,000 new threats each month that legacy anti-virus security systems do not cover. Websense also revealed a clear vision for the increased role of SaaS and cloud-based security within its integrated line of content-based security solutions, highlighting its extensive infrastructure and product momentum in SaaS.

"We've reached a significant milestone of one and a half billion security requests processed per day which shows the rise in adoption of SaaS content security," said John McCormack, president, Websense. "The number is even higher when you consider all of the bad connections prevented based on the poor reputation of the source. Additionally, we are now processing more than one billion daily Web security-as-a-service transactions -- the closest competitors in this space claim less than half that number. When you combine these transactions with the number of new threats we protect customers from that no other legacy security system can match, it shows the value of our cloud-based system and infrastructure."

Websense has a long and innovative history of leveraging the cloud for security-as-a-service, both as a core, backend infrastructure and as a delivery platform for its inbound security and outbound compliance and data loss prevention solutions. Websense currently has millions of active end-users supported across its SaaS offerings, including Web Security, Email Security, Hybrid Email Security, Social Network Security, and original equipment manufacturer (OEM) partner arrangements. Websense has experienced rapid adoption of its SaaS security solutions and was recently cited in an IDC market share report as the fastest growing vendor among the top six in the Web security SaaS market.(1)

"Based on our latest research, Websense is broadening its security SaaS leadership from email to Web, the fastest growing segment of the Web security market," said Brian Burke, program director, Security Products, IDC. "Today, Websense solutions provide reliable, global coverage for thousands of enterprise and smaller customers, as well as technology and service provider partners, worldwide. As for the future, we are optimistic that its products will keep pace with customers' changing needs."

In addition to the growth in its SaaS product adoption, Websense also boasts many firsts in integrated cloud and SaaS security technology. These include the industry-leading ThreatSeeker™ Network, the industry's first and only Web 2.0 social network sensor and SaaS security system, Defensio, and the first SaaS email security solution to integrate industry leading data loss prevention technology.

Building on this integrated content security system the company is paving the way for the future of SaaS by combining the Websense cloud and on-premise platforms. The company's vision is uniquely designed to meet market requirements such as the need for flexibility and lower total-cost-of-ownership, without sacrificing security or control. With this model, customers can choose between deploying their integrated content security solution solely on-premise, solely in the cloud as a service, or in a hybrid combination with the industry's only adaptive anywhere service and management system.

This vision of a flexible delivery platform provides customers with the ability to choose the delivery platform that best meets their ever-changing network requirements and differentiates Websense from other solutions that offer only single, un-integrated points of delivery that increase costs and limit value. In fact, the Forrester Wave for Content Security Suites, Q2, 2009 states, "We believe that Websense's product strategy, built on cloud-based intelligence and cloud delivery, laid the strongest foundation for an integrated content security suite."(2)

"We are delivering the future of SaaS Web, Web 2.0 and email security today, but believe our clear direction provides a competitive advantage for tomorrow as well," added McCormack. "We will continue to leverage more of our cloud-based ThreatSeeker Network in our technologies as well as with partner-delivered solutions. What's more, we will integrate our on-premise and SaaS product capabilities into a unified management and reporting console. This integration will allow customers the choice of deploying our Web and email security anywhere -- for large and small sites, remote users, on premise, in the cloud, and as a combination of the two -- with the flexibility to transition back and forth seamlessly. Ultimately, this will give customers the greatest protection with the deployment flexibility they require."

To Purchase Websense Products Visit http://www.guardsense.com

Websense Offers Industry's Most Advanced Protection From Cybercriminals

Secure Web Gateway Classifies Specific Content on Web Pages in Real-Time, Enabling Organizations to Take Advantage of Benefits of Web 2.0, With Up-to-the-Second Protection From Threats and Inappropriate Content. Websense, Inc. today affirmed its advanced content security solutions provide protection from the growing number of shortened URLs used and shared on social networking sites such as Facebook and Twitter and in blog comments.

Unlike other Web security solutions that rely primarily on antivirus signatures to detect malware -- unique to Websense and only available with the Websense® Web Security Gateway -- if the shortened URL leads the user to a Web 2.0 Web site with dynamic content, the Websense secure Web gateway in real-time classifies the content on that page and will either allow the user to go to the site if its deemed safe and appropriate or prevent the user from visiting the page. Websense Web Security Gateway is the only secure Web gateway that can scan Web 2.0 properties in real time for content across more than 90 categories.

"For years, Websense Web Security solutions have protected customers from URLs that attempt to redirect users to malicious Web sites," said Sr. Director of Technical Marketing Bill Gardner, Websense. "Many of today's Web 2.0 sites used for business purposes are 'mashups' of different applications. Additionally, Web 2.0 sites allow third party applications and user-generated content that can change from minute-to-minute. With Websense Web Security Gateway, customers are protected from the latest threats, such as malicious shortened URLs."

View Slideshare presentation on the dangers of shortened URLs

Additional Facts

-- Use of URL shortening services like TinyURL, Snipurl, Bit.ly and Cligs is exploding due to the growing popularity of Twitter, blogs, social networking sites and other Web 2.0 sites that allow user-generated content and where users often share links with their friends, business associates and followers.

-- In June 2009, hackers were able to exploit a flaw in the Cligs' URL editing software, allowing them to hijack 2.2 million Cligs links.

-- In May 2009, Websense Security Labs alerted that "Koobface" malware, which has plagued social networking sites like Facebook, MySpace and Hi5, was spread among friend networks through the use of TinyURLs and other shortened links.

-- Taking advantage of the convenience of these services, business use of shortened URLs is growing rapidly. Most shortened URL providers now offer free analytics that enable organizations to track important data such as the number of people that have clicked on the links, where they are located and more.

-- Shortened URL service providers are reporting massive growth. According to media reports, Bit.ly is used to create 5 million to 7 million shortened URLs each day, and Snipurl has delivered 53 billion since its inception.

-- Despite the risks, organizations are continuing to adopt Web 2.0 for the many benefits it can provide. In fact, a recent Websense survey of 1,300 IT managers worldwide called Web 2.0 @ Work found that 95 percent of respondents currently allow employee access to some Web 2.0 sites and applications and 62 percent of IT managers believe that Web 2.0 is necessary to their business.

"The volume of shortened URLs and the increased use by businesses have encouraged the attention of criminals because they are a perfect way to get an unsuspecting user to click on a spam or malicious link -- the URL identity is masked to the user and they are used so commonly on sites like Twitter, social networking sites and blogs that people don't hesitate to click on them," added Gardner. "Without Web 2.0 content security that understands where the link is trying to direct the user and what type of content is on that page, in real time, malicious shortened URLs will continue to plague both businesses and consumers."

With Websense Web Security solutions, including the latest Websense Web Security and Web Filter version 7, customers are protected from shortened URLs. When a user clicks on a shortened URL, Websense technology knows if the destination Web site is serving up spam, malicious or in violation of the organization's Web use policies and protects the organization from those threats.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Releases Monthly Threat Video

Websense, Inc. today released the most recent video report covering Web threat activity for July 2009. The video supplement to the monthly "This Month in the Threat Webscape" report produced by Websense Security Labs presents an informative recap of the most pressing

Web, email and data security challenges for the month.

The video is designed to provide researchers, information security professionals and Websense customers with an up-to-date overview on breaking security research conducted by the Websense Security Lbs and other security researchers around the globe. This month's report covers:

-- Zero Day and critical threats in Microsoft IE, Firefox and Adobe
applications

-- Koobface worm maliciously targeting Twitter

-- Rumors on Twitter spreading malicious links

-- Hackers using search engine optimization (SEO) poisoning on Google to
lead to Rogue anti-virus sites

-- An exploit on Apple's iPhone which could allow a hacker to take
control of the phone through a series of text messages

To Purchase Websense Products Visit http://www.guardsense.com

Websense Secure Web Gateway Awarded Product Innovation of the Year

Websense, Inc. today announced that Frost & Sullivan, a leading research and consulting firm, awarded Websense with two prestigious awards for product innovation and marketing leadership.

Websense received the North American Product Innovation of the Year Award for Web Content Management due to its innovative Web security products, particularly the Websense(R) Web Security Gateway. Frost & Sullivan recognized Websense for developing security products that address the unique security challenges of dynamic content on today's feature-rich Web sites, especially Web 2.0 sites and applications.

"One of the important features of Websense Web Security Gateway is its ability to identify and prevent dynamic threats associated with Web 2.0 sites and applications by analyzing never-before-seen Web content in real time and blocking just the portion of the Web page that presents the threat," said Yin Fern Ko, research analyst at Frost & Sullivan. "With its dynamic threat protection and complete portfolio of Web, email and data security solutions, Websense enables companies to take advantage of the business benefits of Web 2.0 while protecting their networks and essential information from Web-based threats and data loss."

Frost & Sullivan also awarded Websense the Global Content Filtering Products Market Leadership Award for its strong product development and market strategy that have enabled Websense to remain the leader in the content filtering market for the past four years. The analyst firm reports that Websense has grown continually year after year, and that it held more than 26 percent of the $2.7 billion global content filtering market in 2008.

"While Websense has a solid foundation in the Web filtering market, the acquisition of SurfControl, PortAuthority, and the release of the Web Security Gateway has provided Websense with a strong set of integrated solutions across the converging areas of Web security, email security, and data loss prevention," said Ko.

"Websense has invested heavily in product development and strategic acquisitions to broaden our product portfolio and transform the company into the industry leader in integrated Web security, email security and data loss prevention solutions," said Jim Haskin, senior vice president of marketing and chief information officer, Websense. "These awards from Frost & Sullivan validate our product offering strategy, and we're honored to be recognized for providing innovative solutions that protect businesses and their essential information from security threats, particularly Web 2.0 threats."

To Purchase Websense Products Visit http://www.guardsense.com

Websense to Present at the 11th Annual Pacific Crest Technology Leadership Forum

Websense, Inc. , the technology leader in integrated Web security, email security and data loss prevention solutions, today announced that management will present at the 11th Annual Pacific Crest Technology Leadership Forum in Vail, Colo. on Monday, August 10, 2009 at 2:25pm PT.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Expands Management Team to Support Growing Leadership in Security and DLP

Websense, Inc. today announced the expansion of its management team with the appointments of Didier Guibal as Executive Vice President of Worldwide Sales, effective immediately, and Arthur S. Locke, who will join the company as Senior Vice President and Chief Financial Officer (CFO) on July 31, 2009.

Guibal brings more than 20 years of experience in sales and marketing and more than 12 years as a senior executive at publicly-traded and private companies, including security and software-as-a-service providers McAfee, RightNow Technologies, and Panda Security, where he was most recently president.

Locke has more than 23 years of experience in finance, tax and accounting and most recently was Executive Vice President & CFO at MicroStrategy Incorporated, a publicly-traded worldwide provider of business intelligence software and services.

"I'm delighted to welcome Didier and Art to the executive team. Websense has the right strategy, and adding depth to our management team will help us hone our ability to execute during these difficult financial times," said Websense Chief Executive Officer Gene Hodges. "Their extensive industry experience will play a pivotal role in the continued growth of Websense and the innovation and delivery of our content-based security product suite."

Guibal to Integrate Sales Globally to Drive Future Growth

At Panda Security, Guibal oversaw the company's U.S. corporate and consumer security products business and architected the company's turnaround strategy. Reporting to the CEO, he worked closely with the board and management team to define and roll out best practices throughout the organization and to bring the organization back to growth.

For more than six years, Guibal was vice president of sales at RightNow Technologies, a successful pioneer in software-as-a-service (SaaS) business applications. There he grew the business from the early start-up phase to a successful initial public offering and beyond.

At security vendor McAfee, he grew through the ranks and held multiple strategic roles from Managing Director for Southern Europe to Vice President of EMEA and Latin America Sales. He was appointed Vice President Worldwide of Marketing and Alliances and Vice President of Sales for the Americas. His background also includes sales roles at Sun Microsystems, Wyse Technologies and UNILOG.

Locke to Lead Finance, Tax and Accounting

Arthur S. Locke will join Websense as Senior Vice President and Chief Financial Officer (CFO), reporting to Hodges, on July 31, 2009. Websense announced the search for a new CFO on March 12, 2009.

Locke most recently was Executive Vice President & CFO at MicroStrategy Inc. During his eight year tenure he led the global accounting and finance team as the company grew from 809 employees with $148 million in revenue to 1,915 employees with $360 million in revenue, while the business expanded its operations worldwide. He has led finance, tax and accounting at multiple publicly-traded and private companies including EIS International, Inc. and Biospherics Inc.

Doug Wride, who joined Websense in 1999 as CFO and became Chief Operating Officer (COO) in January 2009, will retain the title of COO through at least the end of 2009.

"Doug will reduce his operational responsibilities sometime in the first half of 2010 and will be working to hand off many of his key responsibilities to Art Locke, Didier Gubail and John McCormack," added Hodges. "Given the depth and breadth of his experience with Websense, there will be many operational areas where he will be able to contribute meaningfully. We expect he will remain actively involved with Websense for years to come."

To Purchase Websense Products Visit http://www.guardsense.com

Websense Confirms Second Quarter 2009 Results

Company Returns to GAAP Profitability

SAN DIEGO, CA, Jul 28, 2009 (MARKETWIRE via COMTEX News Network) -- Websense, Inc. (NASDAQ: WBSN) today confirmed financial results for the second quarter of 2009 consistent with preliminary results for billings, non-GAAP revenue and non-GAAP earnings per diluted share announced on July 7, 2009. Separately, the company announced that it has expanded its management team with the additions of Art Locke as Senior Vice President and Chief Financial Officer and Didier Guibal as Executive Vice President, Worldwide Sales.

Second Quarter 2009 GAAP Financial Highlights

-- Revenue, calculated in accordance with generally accepted accounting
principles (GAAP), increased 9 percent from the second quarter of 2008 to
$79.5 million.
-- Operating income was $2.7 million, compared to an operating loss of
$8.1 million in the second quarter of 2008.
-- Net income was $3.1 million, or 7 cents per diluted share, compared to
a net loss of $8.2 million, or 18 cents per diluted share, in the second
quarter of 2008.



Second Quarter 2009 Non-GAAP Financial Highlights

-- Billings, which represent the full amount of subscription contracts
billed to customers during the period, totaled $82.2 million, compared to
$87.3 million in the second quarter of 2008.
-- International billings were approximately $40.1 million, compared to
$46.5 million in the second quarter of 2008. Using the same currency
exchange rates that prevailed in the second quarter of 2008, international
billings would have been approximately $45.1 million.
-- Non-GAAP revenue of $84.1 million included approximately $4.6 million
of revenue from SurfControl that would have been recognized during this
period had SurfControl remained an independent operating company reporting
under GAAP. This subscription revenue was included in SurfControl's
deferred revenue as of the date of the acquisition, but was not recognized
as revenue on a post-acquisition basis under GAAP due to a required write-
down of SurfControl's deferred revenue to fair value as of the acquisition
date. Non-GAAP revenue in the second quarter of 2008 was $88.2 million,
and included approximately $15.2 million of revenue from SurfControl that
would have been recognized during this period had SurfControl remained an
independent company.
-- Non-GAAP operating income was $23.5 million, representing 28.0 percent
of non-GAAP revenue. This compares to $27.6 million in the second quarter
of 2008, representing 31.3 percent of non-GAAP revenue.
-- Non-GAAP net income was $14.5 million, or 32 cents per diluted share,
compared to $17.1 million, or 37 cents per diluted share, in the second
quarter of 2008.

To Purchase Websense Products Visit http://www.guardsense.com

Industry Expert Offers Tips About Adopting Web 2.0 Safely

Websense, Inc. , has released a new video featuring noted security and Web 2.0 expert Michael Osterman, principal and founder of Osterman Research, discussing how businesses can adopt Web 2.0 safely in the workplace.

In the video -- available at no cost at http://www.websense.com/content/web20-at-work-osterman-research-video-reg.aspx?cmpid=prnr -- Osterman discusses how the workplace dynamic, employee behavior and security threats have shifted with the rise of Web 2.0 at work. Osterman offers his take on:

-- How the rise of Web 2.0 has affected businesses and changed the way
people work

-- The Web as a primary security threat vector and how Web 2.0 can
potentially drive threats to enterprises

-- What organizations can do to measure the risk of the potential
security threats and assess the business value of Web 2.0

-- The technologies needed to take advantage of the dynamic Web, while
protecting from zero-hour, constantly changing Web, data and email threats.



The video follows a global survey of 1,300 information technology managers across ten countries, asking their perceptions of Web 2.0 in the workplace. Findings from the Web2.0 @Work survey demonstrate that IT professionals around the globe are struggling to strike a balance between taking advantage of the benefits of Web 2.0 while mitigating the security risks. The reality of the business environment today is that organizations can no longer simply block access to Web 2.0. With members of the "millennial" generation now in the workforce, employees not only expect access to Web 2.0, but some even use it as their preferred method of communication.

The Websense Web Security Gateway provides the industry's most comprehensive solution for Web 2.0 content control, content filtering and threat protection on the most advanced security platform. Websense gives organizations the power to use Web 2.0 sites safely to meet business goals without having to worry about security, productivity and liability threats, such as malware, inappropriate content and data loss.

To Purchase Websense Products Visit http://www.guardsense.com

Transport Company Achieves 40 Percent IT Cost Reduction by Moving to Websense

Italian Transportation Company Eliminates Spam and Blended Threats and Dramatically Increases System Uptime With Websense Hosted Email Security. Websense, Inc. today announced that Atac S.p.A., a regional transport organization based in Rome -- has selected award-winning Websense Hosted Email Security to protect its 3,000 employees from blended threats and spam and increase system uptime -- while reducing IT expenses by 40 percent.

Atac also uses Websense Web Security to protect its network from emerging Web threats and to manage Web usage to reduce risk and comply with regulatory requirements.

"Blended attacks were an issue for us as we had noticed that a very high proportion of our unwanted emails contained embedded URLs," said Giorgio Sgarbazzini, CIO, Atac S.p.A. "We're impressed by the real-time threat protection of the Websense ThreatSeeker™ Network that powers the Websense Web Security solution and wanted the same protection and intelligence for our email security."

Websense Hosted Email Security was evaluated and selected over other managed security solutions for several reasons including: superior protection from emerging Internet threats, the ability to stop spam and threats in-the-cloud before reaching the network, as well as guaranteed service-level agreements that competitive solutions couldn't match.

"Managing our email security was a serious concern within the company," added Sgarbazzini. "Our previous on-premise solution was constantly failing and our IT resources were limited to regular business hours. Users did not appreciate being woken up in the middle of the night from the buzz of their BlackBerries as spam landed in their inboxes. Once we moved to Websense Hosted Email Security however, spam disappeared and we now have continuous system uptime. Our users are happy and we've saved money -- the results are really incredible."

"The guaranteed service level of 99.999 percent exceeded our expectations and couldn't be matched by any of the competitive solutions we evaluated," says Sgarbazzini. "This was in addition to 100 percent protection from known viruses and 99 percent spam detection. Websense was by far the best solution for our needs."

Websense Hosted Email Security eliminates spam and malware before they reach the network. The hosted deployment model provides centralized security with built-in redundancy, failover and business continuity while easing administration and optimizing network operating capacity planning costs. Guaranteed by industry-leading service level agreements, Websense Hosted Email Security reduces business costs, eliminates the complexity of managing email threats and provides the highest possible degree of protection.

All Websense solutions are powered by the Websense ThreatSeeker™ Network which continuously monitors the Internet for changes and emerging threats. The resulting intelligence is incorporated in real-time into the company's Web, data and email security solutions. As a result, Websense solutions adapt to the rapidly changing Internet threat environment at speeds not possible by traditional security solutions.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Announces Preliminary Results for Q2'09

Websense, Inc. today announced preliminary, unaudited results for the second quarter of 2009.Preliminary results for the second quarter of 2009 include:

-- Revenue, calculated in accordance with generally accepted accounting
principles (GAAP), is expected to be in the range of $79.3 to $79.6
million, compared to $73.0 million in the second quarter of 2008.
-- Second quarter non-GAAP revenue is expected to be between $83.9 and
$84.2 million and includes approximately $4.6 million in revenue from
SurfControl that would have been recognized during this period had
SurfControl remained an independent operating company. This subscription
revenue was included in SurfControl's deferred revenue as of the date of
the acquisition, but will not be recognized as revenue on a post-
acquisition basis under GAAP due to a required write-down of SurfControl's
deferred revenue to fair value as of the acquisition date. This compares to
non-GAAP revenue of $88.2 million in the second quarter of 2008.
-- Second quarter billings, which represent the full amount of
subscriptions billed to customers during the quarter, are expected to be
approximately $82.2 million, compared to $87.3 million in the second
quarter of 2008. Using the average foreign exchange rates that prevailed
in the second quarter of 2008, total billings would have been approximately
$87.2 million. Compared to the second quarter of 2008, average contract
duration lengthened 0.9 months, predominantly due to an increase in the
duration of Websense Web Security Gateway and other new product
subscriptions for new and upgrading customers.
-- Non-GAAP earnings per diluted share are expected to be between $0.30
and $0.32, compared to $0.37 in non-GAAP earnings per diluted share in the
second quarter of 2008. Second quarter non-GAAP earnings per diluted share
in both years excludes stock-based compensation expense as well as certain
cash and non-cash expenses related to the company's acquisitions, and
includes revenue from SurfControl that would have been recognized as
described above.



Final results, including GAAP and non-GAAP revenue and earnings per diluted share and a reconciliation of GAAP to non-GAAP financial measures, will be released on July 28, 2009.

"We experienced a greater impact from recessionary global economic conditions in the second quarter of 2009. The impact was concentrated primarily in our renewing Web filtering customers, especially outside the U.S.," said Gene Hodges, Websense Chief Executive Officer. "However, our second quarter results show continued momentum for our new Web security products, including the Websense Web Security Gateway and the V10000 secure Web gateway appliance, from both new and upgrading customers. We continue to believe that our strategy of delivering essential information protection from inbound threats and outbound leaks is aligned with market requirements, which is demonstrated by the growth in demand for our Web security gateway and data loss prevention solutions."

Additional financial highlights from the second quarter include:

-- Incremental billings, including upgrading and new customers, increased
more than 15 percent from a year ago and more than 35 percent from the
first quarter of 2009.
-- Billings for our Websense Web Security Gateway and new V10000 secure
Web appliance totaled more than $11 million, compared to approximately $4.4
million in the first quarter.
-- Billings for our data loss prevention solutions totaled approximately
$3.6 million, an increase of 44 percent from the second quarter of 2008.
-- Repurchase of approximately 447,000 shares of common stock for a total
of approximately $7.5 million.
-- Continued strong balance sheet, with cash balances greater than $76
million.

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