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Technology Stocks : Sonicwall Inc. - SNWL -- Ignore unavailable to you. Want to Upgrade?

To: caly who wrote (45)	1/24/2001 1:40:53 PM
From: TimeToMakeTheInvs	Read Replies (1) \| Respond to of 63

Right before earnings would be par for the course. "SonicWALL Launches TotalSecure" - siliconinvestor.com tim

To: caly who wrote (45)	4/20/2001 1:33:48 PM
From: caly	Respond to of 63

Thursday April 19, 4:32 pm Eastern Time Press Release SonicWALL Reports Record First Quarter Revenues and Profits SUNNYVALE, Calif.--(BUSINESS WIRE)--April 19, 2001--SonicWALL, Inc. (Nasdaq:SNWL - news), a leading provider of Internet security solutions, today reported revenues of $24.6 million for the first quarter ended March 31, 2001, representing an increase of 83% compared to revenues of $13.4 million for the same period of 2000. Pro forma net income for the first quarter, which excludes acquisition related charges and stock based compensation expense, increased 44% to $5.2 million, or $0.08 per diluted share, compared to pro forma net income of $3.6 million, or $0.07 per diluted share in the same period a year ago. The net loss, including acquisition related charges and stock based compensation expense, for the first quarter of 2001 was $5.5 million, or $(0.09) per share, compared to net income of $1.8 million during the same period of the previous year. Revenues increased by 16% on a sequential basis over the $21.2 million reported in the fourth quarter of 2000 and pro forma net income increased 19% from the $4.3 million, or $0.07 per diluted share, reported in the fourth quarter of 2000. ``We are very encouraged by our strong results in the first quarter of 2001,'' said Sreekanth Ravi, President and CEO of SonicWALL. ``We expanded our market share for our access security products in terms of both revenues and units, with our installed base of appliances growing to over 140,000 units worldwide. We have also seen strong progress in sales of our SSL products, with successful deployments into several large enterprise accounts, including among others Chase Mellon Bank, Intuit, Verizon and EMC. These accomplishments underscore our strategy of expanding and diversifying our industry-leading product portfolio, our addressable markets and our sales channels.'' ``We are pleased with several developments during the quarter,'' said Michael Sheridan, COO and interim CFO of SonicWALL. ``In the fourth quarter of 2000, we entered the transaction security market through our acquisition of Phobos Corporation, and in the quarter just ended we enhanced our ability to succeed in this new marketplace through the acquisition of Ignyte Technology. Ignyte allows us to offer 24x7 technical support via its fully operational Network Operations Center as well as professional services to the large enterprise customer. We have also continued to make significant gains in our access security business. In addition to strong growth in our worldwide installed base, we experienced a 240% growth over last year in our upgrades and services revenues, which grew to 19% of total revenues for the quarter.'' Highlights from the first quarter include: Increased worldwide installed base of firewall appliances to more than 140,000 units; SonicWALL ranked the market share leader for VPN-enabled hardware unit shipments to overall and midrange market categories by Infonetics Research; Completed acquisition of Ignyte Technology to expand technical support and professional services capabilities; Announcement of a new high performance security ASIC, which accelerates VPN throughput to a maximum speed of 45 Mbps; Announcement of joint marketing agreement with Cisco for our SSL products. Cautionary Note Regarding Forward-looking Statements Certain statements in this press release are ``forward-looking statements'' within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect SonicWALL's actual results include, but are not limited to, the ``Risk Factors'' described in our Securities and Exchange Commission filings, including our Prospectus dated March 16, 2000, and customary risks associated with the acquisitions of companies. All forward-looking statements included in this release are based upon information available to SonicWALL as of the date of the release, and we assume no obligation to update any such forward-looking statement. About SonicWALL SonicWALL, Inc. is the leading provider of integrated Internet security appliances offering access security, transaction security and security services for the enterprise, e-commerce, SME and education markets. Core technologies include firewall, VPN, SSL, high availability, anti-virus, strong authentication with digital certificates and content filtering. Together, these products and technologies provide the most comprehensive Distributed Security Architecture available. SonicWALL, Inc. is headquartered in Sunnyvale, CA and trades on the NASDAQ exchange under the symbol SNWL. For more information, contact SonicWALL at 408/745-9600 or visit the company Web site at sonicwall.com. Note to Editors: SonicWALL is a registered trademark of SonicWALL, Inc. Other product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies. -0-

To: caly who wrote (45)	4/20/2001 1:34:42 PM
From: caly	Read Replies (1) \| Respond to of 63

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS Excluding Amortization of Goodwill and Other Acquisition-Related Charges and Stock Based Compensation (In thousands, except per share amounts) (Unaudited) Quarter Ended March 31, March 31, 2001 2000 Revenue: Product $19,966 $12,047 License and Subscription 4,608 1,360 -------- -------- Total Revenue 24,574 13,407 Cost of Revenue: Product 5,739 3,623 License and Subscription 164 37 -------- -------- Total Cost of Revenue 5,903 3,660 -------- -------- Gross Margin 18,671 9,747 -------- -------- Operating Expenses: Research and development 5,394 1,985 Sales and marketing 6,722 2,602 General and administrative 1,985 861 -------- -------- Total Operating Expenses 14,101 5,448 -------- -------- Income from Operations 4,570 4,299 Other Income, net 3,010 1,209 -------- -------- Income Before Taxes 7,580 5,508 Provision for Income Taxes (2,426) (1,928) -------- -------- Net Income $ 5,154 $ 3,580 Net Income Per Share: Basic $ 0.08 $ 0.07 Diluted $ 0.08 $ 0.07 Shares Used in Per Share Calculations: Basic 62,616 47,898 Diluted 67,257 53,914 The above pro forma amount have been adjusted to exclude the following items: Amortization of goodwill and intangibles 10,227 -- Stock based compensation 926 1,801 Income tax effect (455) -- -------- -------- Net effect of pro forma adjustments $10,698 $1,801 SonicWALL, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Quarter Ended March 31, March 31 2001 2000 Revenue: Product $19,966 $12,047 License and Subscription 4,608 1,360 -------- -------- Total Revenue 24,574 13,407 Cost of Revenue: Product 5,739 3,623 License and Subscription 164 37 -------- -------- Total Cost of Revenue 5,903 3,660 -------- -------- Gross Margin 18,671 9,747 -------- -------- Operating Expenses: Research and development 5,394 1,985 Sales and marketing 6,722 2,602 General and administrative 1,985 861 Amortization of goodwill and intangibles 10,227 -- Stock based compensation 926 1,801 -------- -------- Total Operating Expenses 25,254 7,249 -------- -------- Income (Loss) from Operations (6,583) 2,498 Other Income, net 3,010 1,209 -------- -------- Income (Loss) Before Taxes (3,573) 3,707 Provision for Income Taxes (1,971) (1,928) -------- -------- Net Income (Loss) $(5,544) $ 1,779 Net Income (Loss) Per Share: Basic $ (0.09) $ 0.04 Diluted $ (0.09) $ 0.03 Shares Used in Per Share Calculations: Basic 62,616 47,898 Diluted 62,616 53,914 SonicWALL, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31, 2001 2000 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $107,394 $ 140,287 Short term investments 110,787 79,257 Accounts receivable, net 12,560 11,541 Inventories 2,906 2,509 Prepaid expenses and other 3,146 2,192 Deferred tax asset 18,188 19,171 -------- -------- Total Current Assets 254,981 254,957 Property and Equipment, net 5,220 3,831 Goodwill and other intangibles 230,478 228,711 Other Assets 158 618 -------- -------- $490,837 $488,117 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 6,736 $7,867 Accrued compensation and related benefits 3,082 4,561 Other accrued liabilities 5,896 8,501 Income taxes payable 2,826 2,192 Deferred revenue 10,280 8,812 -------- -------- Total Current Liabilities 28,820 31,933 Deferred tax liability 20,419 20,426 Long-term liabilities 356 -- -------- -------- Total liabilities 49,595 52,359 Shareholders' Equity 441,242 435,758 -------- -------- $490,837 $488,117 ======== ========