SonicWall Reports 1Q02SonicWall Reports 1Q02

SUNNYVALE, Calif. -- SonicWALL, Inc. (NASDAQ: SNWL), the leading provider of comprehensive Internet security solutions, today announced that based on preliminary estimates, it expects revenue for the first quarter ended March 31, 2002 to fall within the range of $28 million to $29 million, compared to $24.6 million reported in the first quarter of 2001. Pro forma net income for the first quarter, which excludes amortization of intangibles and stock based compensation expense, is expected to fall within the range of $1.5 million to $2.5 million, or $0.02 to $0.03 per diluted share, compared to pro forma net income of $5.2 million, or $0.08 per diluted share in the same period a year ago. Net loss, including amortization of intangibles and stock based compensation expense, for the first quarter of 2002 is expected to be within the range of $1.5 million to $2.5 million, or $0.02 to $0.03 per share, compared to a net loss of $5.5 million, or $0.09 per share, during the same period of the previous year. "While our revenues grew 15% to 18% compared to same quarter revenues last year, we were nonetheless disappointed in our operating results this quarter," said Cosmo Santullo, President and CEO of SonicWALL. "Our total unit shipments were significant at approximately 30,000 units. However, we did not achieve our planned level of penetration of large enterprise networks during the quarter, generally due to the currently challenging economic environment and its impact on buying patterns. In addition, the average revenue per unit of our PRO product line was lower than expected, caused by mix changes and some issues related to the roll-out of our new service offerings. We will comment more fully on the results of our quarter and our plans for the remainder of 2002 on our regularly scheduled conference call on April 18, 2002." SonicWall Inc.