Exhibit 99.1
BLUE COAT ANNOUNCES PRELIMINARY RESULTS FOR FISCAL FOURTH QUARTER 2005,
EXCEEDING PREVIOUS GUIDANCE
Company to Host Conference Call at 2 p.m. PDT
SUNNYVALE, Calif., May 5 /PRNewswire-FirstCall/ -- Blue Coat(R) Systems,
Inc. (Nasdaq: BCSI), a leading provider of proxy appliances, today announced
preliminary results for its fiscal fourth quarter ended April 30, 2005.
Based on preliminary financial data, the company expects total revenue to
be between $27.8 million and $28.3 million and GAAP earnings per diluted share
to be between $0.19 and $0.21. GAAP earnings per diluted share reflects a
benefit of approximately $0.1 million from the reversal of restructuring
reserves and a benefit of approximately $0.8 million from the reversal of stock
compensation expense previously recorded in the third quarter of fiscal 2005.
Non-GAAP earnings per diluted share, which exclude the amortization of
intangible assets, stock option expense, the benefit from the reversal of
restructuring reserves and the benefit from the reversal of stock compensation
expense, are expected to be between $0.15 and $0.17. On February 24, 2005 the
company provided guidance for its fourth fiscal quarter of 6-8% sequential
growth on the revenue of $24.7 million, or revenue of $26.2 million to $26.7
million, GAAP earnings per diluted share of $0.07-$0.09, and non-GAAP earnings
per diluted share (excluding intangible asset amortization and stock
compensation adjustments) of $0.09-$0.11. Fourth quarter results are preliminary
and thus are subject to the company's management and independent registered
accounting firm completing their year end audit procedures.
"Our strong performance in the fourth quarter reflects the benefits of our
investments in sales and marketing, which we began making several quarters ago,"
said Brian NeSmith, president and CEO of Blue Coat. "We believe that these
investments, in addition to our anti-virus and recently announced spyware
offering, will allow us to further extend our leadership in the proxy appliance
market."
The non-GAAP earnings per share amounts described above, which exclude
intangible asset amortization, stock compensation, the benefit from the reversal
of restructuring reserves and the benefit from the reversal of stock
compensation expense previously recorded in the third quarter of fiscal 2005,
are not in accordance with generally accepted accounting principles used in the
United States (GAAP). Blue Coat historically uses the non-GAAP financial
measures of income discussed above for internal evaluation and to report results
of its business. Blue Coat believes that these measures best allow its
management, board of directors and investors to understand its activities and
business results. The company believes that inclusion of these non-GAAP
financial measures provides consistency and comparability with past reports of
its financial results, as well as comparability to other companies in its
industry, most of whom present similar non-GAAP financial measures to investors.
A reconciliation of our net income excluding certain charges and benefits
to our net income under accounting principles generally accepted in the United
States of America is presented below:
Low End High End
Fiscal Q4 '05 Fiscal Q4 '05
------------- -------------
Earnings per share:
Earnings per share excluding certain
charges and benefits (Non-GAAP) $ 0.15 $ 0.17
Certain charges and benefits:
Amortization of intangible assets (0.02) (0.02)
Reversal of restructuring reserve -- --
Reversal of stock compensation
expense previously recorded 0.06 0.06
Earnings per share - GAAP $ 0.19 $ 0.21
Diluted shares outstanding (millions) 13.5 13.5
Business Update Conference Call
The company will be hosting a conference call today, Thursday, May 5, 2005,
at 2:00 p.m. Pacific Daylight Time to discuss the fourth quarter preliminary
results as well as provide an update on investor relations communications, SEC
investigations and other recent business developments. To participate in the
conference call, please dial 800-762-4717 (toll-free) and 480-629-9025 (toll
call), pass code: 781486. A replay of the call will be available starting May 5,
2005 at 5:30 p.m. Pacific Time (8:30 p.m. Eastern Time), and can be accessed by
calling 800-475-6701 (toll-free) or 320-365-3844 (toll call) with the pass code:
781486. An audio Webcast of the call will also be available at
http://www.bluecoat.com/aboutus/investor_relations .
Fiscal Fourth Quarter and Year End Conference Call
Blue Coat will host a conference call and webcast on Thursday, June 2, 2005
at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the results of its
fiscal fourth quarter and fiscal year ended April 30, 2005. Participants should
call 888-428-4479 (toll-free) or 612-332-0107 (toll call), pass code: 758619. A
replay of the call will be available starting June 2, 2005 at 5:00 p.m. Pacific
Time (8:00 p.m. Eastern Time), and can be accessed by calling 800-475-6701
(toll-free) or 320-365-3844 with the pass code: 758619. An audio Webcast of the
call will also be available at
http://www.bluecoat.com/aboutus/investor_relations .
About Blue Coat Systems
Blue Coat helps organizations make the Web safe and productive for
business. Blue Coat proxy appliances provide visibility and control of Web
communications to protect against risks from spyware, Web viruses, inappropriate
Web surfing, instant messaging (IM), video streaming and peer-to-peer (P2P) file
sharing -- while actually improving Web performance. Trusted by many of the
world's largest organizations, Blue Coat has shipped more than 20,000 proxy
appliances. Blue Coat is headquartered in Sunnyvale, California, and can be
reached at 408-220-2200 or www.bluecoat.com.
FORWARD LOOKING STATEMENTS: The statements contained in this press release
that are not purely historical are forward-looking statements, including
statements regarding Blue Coat Systems' expectations, beliefs, intentions or
strategies regarding the future, and including statements regarding the
anticipated results for the quarter ended April 30, 2005 and market acceptance
of new product offerings. All forward-looking statements included in this press
release are based upon information available to Blue Coat Systems as of the date
hereof, and Blue Coat Systems assumes no obligation to update any such
forward-looking statements. Forward-looking statements involve risks and
uncertainties, which could cause actual results to differ materially from those
projected. Specifically, the Company's financial results for the fourth quarter
and fiscal year are preliminary and are subject to review and adjustment by
management and the Company's independent auditors in connection with normal
quarter closing procedures and the Company's year-end audit. These and other
risks relating to Blue Coat Systems' business are set forth in Blue Coat
Systems' most recently filed Form 10-Q for the quarter ended January 31, 2005,
and other reports filed from time to time with the Securities and Exchange
Commission.
NOTE: All trademarks, trade names or service marks used or mentioned herein
belong to their respective owners.
SOURCE Blue Coat Systems, Inc.
-0- 05/05/2005
/CONTACT: media, Tony Thompson of Blue Coat Systems, Inc.,
+1-408-220-2305, or tony.thompson@bluecoat.com; or investors, JoAnn Horne of
Market Street Partners, +1-415-445-3235, or maria@marketstreetpartners.com,
for Blue Coat/
/Web site: http://www.bluecoat.com /
_