Websense, Inc. F2Q08 (Qtr End 06/30/08) Earnings Call Transcript

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2008-07-28 16:59:11.0

Tags: Websense Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Samuel Wilson - JMP Securities

Samuel Wilson - JMP Securities

Ex post or looking backwards do you think that SurfControl customer retention has been above expectations?

Gene Hodges

Absolutely.

Samuel Wilson - JMP Securities

Commercial activity clearly back to normal this quarter, billings were above what we were expecting, do you think you’ve figured out now the right level of promotional activities to run to keep some of the volatility down?

Gene Hodges

You can always do better. I think I made a mistake in the first quarter given that the macro climate was darkening and we pulled typical promotions that we might use to give a good cost for money break to move customers to longer duration and we simply changed that back to what we’ve done in the past, generally used a little heavier in the US and in Europe and things went about half-way back to our expected durations.

Samuel Wilson - JMP Securities

What was the linearity for the quarter? Just sort of by month, did it get better as the months went on, worse, what are your thoughts there?

Dudley Mendenhall

Linearity actually improved this quarter. We saw a better upfront booking at the beginning of the quarter which also had a positive contribution of revenue.

Samuel Wilson - JMP Securities

You mentioned headcount at around 1,200, is that the exact headcount?

Douglas Wride

Its pretty close, plus or minus 10.

Operator

Your next question comes from the line of Todd Raker - Deutsche Bank

Todd Raker - Deutsche Bank

I was hoping you could give us some sense for economics per seat and I just wanted to understand, the low end solution being sold in China, does that mean you’re not selling SurfControl any other geography and so how do you see pricing changing here coming up into the anniversary of the acquisition?

Gene Hodges

Doug was referring to a specific product line, an appliance product line called Risk Filter. That was not a big seller in SurfControl anywhere but China. It came from an acquisition in China and was an important portion of the business there. So we kept that product going in China although we’re not selling it anywhere else. SurfControl’s web filter product and email filter product have both been brought forward and are being actively supported and maintained.

Douglas Wride

 

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