SonicWall Announces ResultsSonicWall Announces Results

SUNNYVALE, Calif. -- SonicWALL, Inc. (NASDAQ: SNWL), today reported revenue of $45.1 million for the first quarter of fiscal year 2007. Revenue in the quarter increased 13% compared to revenue of $39.8 million in the first quarter of 2006 and decreased 3% compared to $46.7 million in the fourth quarter of 2006.

Net income for the first quarter of 2007 calculated in accordance with U.S. generally accepted accounting principles (GAAP) was $2.3 million, or $0.03 per diluted share. In comparison, GAAP net loss for the first quarter of 2006 was $(5.6) million, or $(0.09) per diluted share.

Non-GAAP net income for the first quarter of 2007 was $5.0 million or $0.07 per diluted share as compared to non-GAAP net income for the first quarter of 2006 of $1.6 million or $0.02 per diluted share. Non-GAAP net income excludes amortization of purchased intangible assets and share-based compensation expense primarily associated with the expensing of stock options in accordance with Financial Accounting Standards No. 123R (FAS 123R). An explanation of our use of non-GAAP measures is included in the section in this press release entitled "Use of Non-GAAP Financial Measures."

"Our improved license and services revenue performance, excellent operating cash flow, deferred revenue growth and profitability during the quarter helped offset the effects of tough market conditions," said Matthew Medeiros, president and chief executive officer at SonicWALL. "I am confident that we are well positioned to take advantage of improvements in the business climate going forward."

SonicWall Inc. (Nasdaq: SNWL)