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To: Mark Fowler who wrote (136210)	12/28/2001 8:22:26 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Markus, check out COVD. They just came out of busto 11. SBC has partnered with Yahoo to bring DSL to Yahoo's new internet service. SBC can only sell DSL in its region, but Yahoo reaches nationally. Covad is partnered with SBC to service DSL COVD outside of SBC's region. Get the connection? siliconinvestor.com

To: Mark Fowler who wrote (136210)	12/28/2001 11:15:51 AM
From: H James Morris	Respond to of 164684

But about 150 million Americans use the Internet at work, and Websense chief executive John Carrington sees strong growth potential. December 28, 2001 Everything seems to be falling into place for Websense, an Internet company -- yes, an Internet company -- that has become a Wall Street standout. The stock price of San Diego-based Websense is on a remarkable climb, closing yesterday at $32.16. That's about three times more than the stock's closing price three months ago. "The stock price has been astonishing," said Bud Leedom, an analyst with Wells Fargo Van Kasper who follows the company. "It has really taken off." Websense develops software that allows companies to control the Internet usage of their employees. Companies can keep workers from downloading music, for example, or from accessing Web sites devoted to pornography, shopping or gambling. About 15,000 companies, including more than half of the Fortune 500, use Websense's software for 10 million of their workers. But about 150 million Americans use the Internet at work, and Websense chief executive John Carrington sees strong growth potential. "The business is just really starting to take off," he said. Websense reported its first-ever profits this year, including a $1.9 million net income for the three-month period ended Sept. 30. The company received $9.5 million in revenue for the quarter, and is on track to receive $11 million in revenue for the current quarter, which ends Monday. "In a time when investors were expecting the worst from everybody, to have such positive news really drew a lot of attention to our stock," said Douglas Wride, chief financial officer. Moving into the black opened up Websense's stock to a new set of investors, including some large mutual funds that generally only invest in profitable companies, Wride said. Websense has a market capitalization of $650 million -- well over the $500 million threshold that some investors require before buying stock, Wride said. The Sept. 11 attacks caused financial problems for some companies as spending slowed. September is generally a busy month for software companies because it is the last month of the quarter, a time when deals are closed and more money is spent. Websense wasn't as devastated as other companies after the attacks because the company generally books 80 percent of its quarterly revenue before the quarter even starts, Leedom said. Websense may even benefit from new interest in the information security sector after Sept. 11, analysts say. Companies are looking everywhere to cut costs, and Websense says its software can help free up expensive Internet bandwidth by prohibiting movie and music downloading. Wride attributed some of the stock performance to Websense's history of delivering solid results and meeting investors' expectations. "We're just not going to tell people that we're going to shoot the moon and then pray that that happens," he said. The company is planning to raise the subscription fees for its software, which now costs about $15 to $20 per user per year. Websense raises its fees every year, and is considering a 30 percent increase for 2002. Kim Peterson: (619) 293-2022; kim.peterson@uniontrib.com Copyright 2001 Union-Tribune Publishing Co.