Websense Inc. (Nasdaq: WBSN) on Tuesday said its second-quarter net income dipped 6 percent and the Internet filtering and security software maker issued revenue guidance lower than Wall Street was expecting, citing concerns about foreign exchange rates and the overall economy.
Investors sent the company's shares sinking in after-hours trading.
For April through June, Websense's net income fell to $3.1 million from $3.3 million in the year-ago quarter. Earnings per share were flat at 7 cents.
That figure excludes certain items. Including them, Websense said it earned 31 cents per share.
Analysts surveyed by Thomson Reuters had forecast lower earnings of 28 cents per share.
Revenue edged up 5 percent to $81.9 million from $77.8 million in the same period last year. Including deferred revenue related to an acquisition, revenue totaled $83.2 million.
Analysts were looking for higher adjusted revenue of $84.3 million.
Websense set aside $2.9 million as a provision for income taxes in the quarter, compared with a year ago when it reported an income tax benefit of $3.6 million. That helped push net income lower than in the 2009 quarter.
"While we remain confident in our ability to leverage our technology leadership and our large installed base, we see challenges to our overall performance for the second half of the year from the volatility in European currency exchange rates and signs of moderate softening in the global economy," said CEO Gene Hodges in a statement.
For the current third quarter, Websense said it expects adjusted revenue of $82 million to $84 million, lower than the $86.6 million currently predicted by analysts. For the full year, the company forecast adjusted revenue of $333 million to $337 million. Wall Street is looking for $342.1 million.
On an adjusted basis, Websense said it expects to earn 29 cents to 32 cents per share in the current quarter and $1.17 to $1.22 per share for the year.
Analysts are currently expecting adjusted quarterly earnings of 32 cents per share and $1.20 per share for the year.
Websense's shares fell $1.87, or 8.8 percent, to $19.51 in after-hours trading Tuesday following the release of the earnings report. They had closed the regular session up 5 cents to $21.38.
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