SUNNYVALE, Calif. -- Blue Coat(TM) Systems, Inc. (Nasdaq: BCSI) today announced that it anticipates second quarter fiscal year 2004 revenue to be approximately $13.4 million, an increase of approximately 20 percent compared to $11.2 million in the same quarter last year, and an increase of approximately 8 percent compared to $12.4 million in the prior quarter. Final results for the quarter will be released after the market close on November 19, 2003.

"We are excited about our continued progress, and these expected results indicate positive momentum across the business," said Brian NeSmith, president and CEO of Blue Coat. "We will continue efforts to aggressively grow the business and provide customers with industry-leading tools for increasing productivity and minimizing business risks."

For the quarter, the company expects gross margins to be approximately 66 percent, while operating expenses are expected to be approximately $10.6 million, which includes $1.1 million related to the settlement of a patent infringement lawsuit. The company also anticipates recording approximately $0.9 million in additional restructuring reserves relating to vacant real estate, and $0.1 million in non-cash deferred stock compensation expense.

Blue Coat Systems Inc.