EdgeWave 8-K ST. Bernard Software Reports

Exhibit 99.1

ST. BERNARD SOFTWARE REPORTS

SECOND QUARTER 2007 FINANCIAL RESULTS

SAN DIEGO, CA, August 14, 2007 —St. Bernard Software, Inc. (OTCBB: SBSW), a global provider of security appliances and on-demand solutions, including secure content management, archiving and collaboration, today announced its financial results for the second quarter ended June 30, 2007.

Second Quarter Summary

The second quarter was very difficult as we continued to execute our new strategy and associated transition plan. Although we had better than industry average growth in our core iPrism product line, we experienced a several month delay in preparing our new LivePrism product line to effectively compete in medium and large customer opportunities. This delay negatively impacted our sales plan and caused the company to be cash constrained. We also experienced disruption in employee productivity as we implemented the next phase in our company restructuring and expense reduction plans. The cumulative result was a weaker than expected second quarter, a very low cash balance to operate the company, and a slow start to our third quarter.

Through this difficult period in the company’s transition we did continue to execute to our new strategy and made progress towards our new goals. Following are a few positive highlights for the quarter:

• iPrism experienced 13.5% year-over-year billings growth

• LivePrism acquired 202 new customers in the first six months of 2007

• Hired new VP Marketing to spearhead global marketing efforts

• Joined Jamcracker Delivery Network

• Secured new $4 Million credit facility with Silicon Valley Bank

• iPrism^® and LivePrism™ named Winners of the 2007 Global Product Excellence Awards by Info Security Products Guide

Financial Results

Revenue in the second quarter was $5.0 million, in line with the $4.6 to $5.2 million guidance previously provided. Subscription revenue from iPrism and LivePrism was $3.6 million in the second quarter. GAAP net loss was $(4.7) million, or $(0.32) per share for the second quarter compared to $(1.2) million, or $(0.12) loss per share reported for the second quarter of 2006. The company cautioned that the review by the company’s independent auditors of the second quarter financial statements contained in this release was not completed at the time of this release, and so, the financial statements that will be filed with the company’s Quarterly Report on Form 10-QSB may differ.

Divestiture of Legacy Open File Manager™ Product

In conjunction with our new strategy to focus the company on network based secure content management solutions, the company signed a definitive agreement on August 13^th to sell our legacy Open File Manager product line to EVault. The value of the transaction is $6.875M in cash and is expected to close in August 2007. The proceeds of

this sale will provide critically important funding for St. Bernard to support growth of our core iPrism and LivePrism products and continue the execution of our company strategy. We believe that Seagate is an excellent organization that will provide great value to our Open File Manager customers and partners.

Third Quarter Business Outlook

Mr. Rossi said, “We believe that we will continue to achieve solid sales growth and excellent customer retention in our iPrism and LivePrism product lines. In combination with our sales growth, the expense restructuring in Q2’07 will move our business toward a cash flow positive position. We currently expect our Q3 2007 revenue to range from $4.2 to $4.8 million. As a reminder, the company divested its UpdateEXPERT product line early in the first quarter of 2007 and also divested the Open File Manager product line in August 2007. Our guidance reflects the impact of these divestitures.”

Conference Call Information

What: St. Bernard’s Second Quarter 2007 Financial Results Conference Call

When: Tuesday, August 14th at 1:30pm PT (4:30 pm ET)

Dial In Number: 800-257-3401 (US and Canada) 303-205-0033 (International) Company name, ‘St. Bernard’

Webcast: To listen to the live Webcast, use the following link:http://www.vcall.com/IC/CEPage.asp?ID=119614 Or, log onto www.stbernard.com under the Investor Relations section.

Web Replay: 30 days

Call Replay: A replay of the conference call will be available at www.stbernard.com in the Investor Relations area of the site starting two hours after the call through Tuesday, May 22, 2007 at 11:59 pm PT

Replay Number: 800-405-2236 or 303-590-3000 (International) and enter the pass code: 11094529#

For the conference call, please dial-in five minutes in advance to ensure a proper connection. Questions and answers will be taken only from participants on the line. For the Webcast, please allow 15 minutes to register, download and install any necessary software.

About St. Bernard

St. Bernard Software, Inc. (OTCBB: SBSW) is a global provider of security appliances and hosted solutions, including secure content management, archiving and collaboration. The company’s award-winning products deliver innovative security solutions that offer the best combination of ease-of-use, performance and value. Established in 1995 with

headquarters in San Diego, CA and international offices in the United Kingdom and the Netherlands, St. Bernard sells and supports its products directly and through solution partners worldwide. For more information, please visit www.stbernard.com.

^©2007 St. Bernard Software Inc. All rights reserved. The St. Bernard Software logo, LivePrism, iPrism, iGuard and Open File Manager are trademarks of St. Bernard Software Inc. All other trademarks and registered trademarks are hereby acknowledged.

This press release may contain forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, among other things, any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include, among other things, performance of contracts by customers and partners; employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; and the difficulty of keeping expense growth at modest levels while increasing revenues. These and other risks and factors that could cause events or our results to differ from those expressed or implied by such forward-looking statements are described in our most recent annual report on Form 10-KSB, as well as other subsequent filings with the Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements.

# # #

Contact:

St Bernard Software:

Al Riedler, Chief Financial Officer

(858) 524-2050

or

MKR Group, Inc.

Marie Dagresto or Todd Kehrli

(323) 468-2300

sbsw@mkr-group.com

St. Bernard Software, Inc.

Consolidated Balance Sheets

	June 30, 2007			December 31, 2006
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	336,686		$	4,841,871
Accounts receivable - net of allowance for doubtful accounts of $646,000 and $678,000 at June 30, 2007, and
December 31, 2006, respectively		4,087,960			3,964,403
Inventories		725,911			729,739
Prepaid expenses and other current assets		492,000			483,840
Total current assets		5,642,557			10,019,853
Fixed Assets - Net		1,857,772			1,726,050
Other Assets		3,540,610			3,937,848
Goodwill		7,542,664			7,709,212
	$	18,583,603		$	23,392,963
Liabilities and Stockholders’ Deficit
Current Liabilities
Line of credit	$	2,338,408		$	296,410
Accounts payable		3,995,139			4,559,323
Accrued compensation expenses		1,413,962			1,525,821
Accrued expenses and other current liabilities		386,267			291,718
Current portion of capitalized lease obligations		144,846			75,087
Deferred revenue		10,878,632			11,873,376
Total current liabilities		19,157,254			18,621,735
Capitalized Lease Obligations, Less Current Portion		249,526			141,617
Deferred Revenue		5,604,670			5,842,809
Total liabilities		25,011,450			24,606,161
Commitments and Contingencies
Stockholders’ Deficit
Preferred stock, $0.01 par value; 5,000,000 shares authorized and 0 shares issued and outstanding		—			—
Common stock, $0.01 par value; 50,000,000 shares authorized and 14,742,534 and 14,764,251 shares issued and outstanding in 2007 and 2006, respectively		147,425			147,643
Additional paid-in capital		38,757,731			38,304,771
Accumulated deficit		(45,333,003	)		(39,665,612	)
Total stockholders’ deficit		(6,427,847	)		(1,213,198	)
	$	18,583,603		$	23,392,963

St. Bernard Software, Inc.

Unaudited Consolidated Statements of Operations

	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
Sales
License	$	559,478		$	975,987		$	1,415,123		$	1,860,382
Appliance		881,969			804,729			1,627,239			1,427,929
Subscription		3,600,039			3,831,228			7,372,356			7,592,236
Total Sales		5,041,486			5,611,944			10,414,718			10,880,547
Cost of Sales
License		17,936			20,505			50,253			29,891
Appliance		778,583			600,950			1,336,592			979,717
Subscription		1,007,742			957,438			2,065,381			1,921,327
Total Cost of Sales		1,804,261			1,578,893			3,452,226			2,930,935
Gross Profit		3,237,225			4,033,051			6,962,492			7,949,612
Sales and marketing expenses		3,414,415			2,712,357			7,474,019			5,276,687
Research and development expenses		1,805,270			1,432,447			3,682,872			3,027,811
General and administrative expenses		2,440,123			984,429			4,860,114			1,912,204
Total Operating Expenses		7,659,808			5,129,233			16,017,005			10,216,702
Loss from Operations		(4,422,583	)		(1,096,182	)		(9,054,513	)		(2,267,090	)
Other Expense (Income)
Interest expense - net		59,162			87,837			72,061			168,301
Loss (Gain) on sale of UpdateExpert		251,007			—			(3,463,418	)		—
Total Other Expense (Income)		310,169			87,837			(3,391,357	)		168,301
Loss Before Income Taxes		(4,732,752	)		(1,184,019	)		(5,663,156	)		(2,435,391	)
Income tax expense		—			—			(4,235	)		—
Net Loss	$	(4,732,752	)	$	(1,184,019	)	$	(5,667,391	)	$	(2,435,391	)
Basic and Diluted Loss Per Common Share	$	(0.32	)	$	(0.12	)	$	(0.38	)	$	(0.25	)
Weighted Average Shares Outstanding		14,764,512			9,756,433			14,779,434			9,752,043

St. Bernard Software, Inc.

Unaudited Consolidated Statements of Cash Flows

	Six months ended June 30,
	2007			2006
Cash Flows From Operating Activities
Net loss	$	(5,667,391	)	$	(2,435,391	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		740,156			294,526
Provision for bad debts		(31,654	)		20,071
Gain on sale of UpdateExpert		(3,463,418	)		—
Compensation expense		580,959			—
Noncash interest expense		2,318			—
Increase (decrease) in cash resulting from changes in:
Accounts receivable		(91,903	)		486,045
Inventories		3,828			96,077
Prepaid expenses and other current assets		(24,169	)		16,869
Accounts payable		(564,184	)		1,296,606
Accrued expenses and other current liabilities		72,113			34,480
Deferred revenue		1,030,535			211,107
Net cash provided by (used in) operating activities		(7,412,810	)		20,390
Cash Flows From Investing Activities
Additional costs related to purchase of business		(83,453	)		—
Purchases of fixed assets		(230,573	)		(30,932	)
Proceeds from the sale of UpdateExpert		1,200,000			—
Net cash provided by (used in) investing activities		885,974			(30,932	)
Cash Flows From Financing Activities
Merger costs		—			(464,941	)
Proceeds from stock option and warrant exercises		30,044			14,066
Principal payments on capitalized lease obligations		(50,391	)		(23,488	)
Proceeds from note payable		—			395,833
Net increase in line of credit		2,041,998			540,890
Net cash provided by financing activities		2,021,651			462,360
Net Increase (Decrease) in Cash and Cash Equivalents		(4,505,185	)		451,818
Cash and Cash Equivalents at Beginning of Period		4,841,871			9,211
Cash and Cash Equivalents at End of Period	$	336,686		$	461,029
Cash paid during the period for:
Interest	$	125,386		$	150,608
Income taxes	$	1,677		$	—

During the six months ended June 30, 2007, the Company entered into capitalized lease obligations for the purchase of $218,542 in fixed assets.

In April 2007, the shares issued in conjunction with the purchase AgaveOne were reduced by 66,667 shares or $250,000 as a result of indemnification claims.

In May 2007, the Company issued 100,000 warrants in conjunction with a loan agreement with a bank. See Note 4.