FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2005
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
Commission File Number 000-30093
Websense, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
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51-0380839 |
(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
10240 Sorrento Valley Road
San Diego, California 92121
858-320-8000
(Add ress of principal executive offices, zip code and telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicat e by check mark whether the registrant is an accelerated filer (as defined in Rule 12-b-2 of the Exchange Act): Yes ý No o
The number of shares outstanding of the registrant’s Common Stock, $.01 par value, as of April 29, 2005 was 23,899,648.
Websense, Inc.
Form 10-Q
For the Period Ended March 31, 2005
TABLE OF CONTENTS
1
Part I — Financial Information
Item 1. Consolidated Financial Statements (Unaudited)
Websense, Inc.
(Unaudited and in thousands)
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March 31, |
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December 31, |
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(See Note 1) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
45,025 |
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$ |
38,878 |
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Marketable securities |
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222,527 |
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204,910 |
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Accounts receivable, net of allowance for doubtful accounts |
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32,399 |
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44,309 |
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Income taxes receivable |
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3,717 |
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3,201 |
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Current portion of deferred income taxes |
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8,530 |
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8,530 |
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Other current assets |
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3,165 |
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1,525 |
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Total current assets |
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315,363 |
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301,353 |
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Property and equipment, net |
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4,174 |
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3,955 |
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Deferred income taxes, less current portion |
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9,523 |
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9,523 |
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Deposits and other assets |
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461 |
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462 |
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Total assets |
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$ |
329,521 |
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$ |
315,293 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,747 |
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$ |
1,100 |
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Accrued payroll and related benefits |
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6,528 |
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7,163 |
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Other accrued expenses |
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5,605 |
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5,011 |
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Income taxes payable |
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1,667 |
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1,758 |
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Current portion of deferred revenue |
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91,919 |
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90,686 |
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Total current liabilities |
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107,466 |
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105,718 |
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Deferred revenue, less current portion |
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41,689 |
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41,631 |
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Stockholders’ equity: |
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Common stock |
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239 |
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235 |
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Additional paid-in capital |
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161,674 |
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150,447 |
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Treasury stock |
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(7,078 |
) |
— |
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Retained earnings |
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26,293 |
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17,681 |
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Accumulated other comprehensive loss |
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(762 |
) |
(419 |
) |
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Total stockholders’ equity |
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180,366 |
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167,944 |
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Total liabilities and stockholders’ equity |
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$ |
329,521 |
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$ |
315,293 |
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See accompanying notes.
2
Websense, Inc.
Consolidated Statements of Income
(Unaudited and in thousands, except per share amounts)
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Three Months Ended |
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March 31, |
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March 31, |
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Revenue |
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$ |
34,182 |
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$ |
24,611 |
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Cost of revenue |
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2,500 |
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1,691 |
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Gross margin |
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31,682 |
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22,920 |
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Operating expenses: |
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Selling and marketing |
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12,328 |
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9,416 |
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Research and development |
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4,024 |
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3,567 |
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