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Technology Stocks : Sonicwall Inc. - SNWL

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To: caly who wrote (45)4/20/2001 1:33:48 PM
From: caly   of 63
Thursday April 19, 4:32 pm Eastern Time

Press Release

SonicWALL Reports Record First Quarter Revenues and Profits

SUNNYVALE, Calif.--(BUSINESS WIRE)--April 19, 2001--SonicWALL, Inc. (Nasdaq:SNWL - news), a leading provider of Internet security solutions, today reported revenues of $24.6 million for the first quarter ended March 31, 2001, representing an increase of 83% compared to revenues of $13.4 million for the same period of 2000.

Pro forma net income for the first quarter, which excludes acquisition related charges and stock based compensation expense, increased 44% to $5.2 million, or $0.08 per diluted share, compared to pro forma net income of $3.6 million, or $0.07 per diluted share in the same period a year ago. The net loss, including acquisition related charges and stock based compensation expense, for the first quarter of 2001 was $5.5 million, or $(0.09) per share, compared to net income of $1.8 million during the same period of the previous year.

Revenues increased by 16% on a sequential basis over the $21.2 million reported in the fourth quarter of 2000 and pro forma net income increased 19% from the $4.3 million, or $0.07 per diluted share, reported in the fourth quarter of 2000.

``We are very encouraged by our strong results in the first quarter of 2001,'' said Sreekanth Ravi, President and CEO of SonicWALL. ``We expanded our market share for our access security products in terms of both revenues and units, with our installed base of appliances growing to over 140,000 units worldwide. We have also seen strong progress in sales of our SSL products, with successful deployments into several large enterprise accounts, including among others Chase Mellon Bank, Intuit, Verizon and EMC. These accomplishments underscore our strategy of expanding and diversifying our industry-leading product portfolio, our addressable markets and our sales channels.''

``We are pleased with several developments during the quarter,'' said Michael Sheridan, COO and interim CFO of SonicWALL. ``In the fourth quarter of 2000, we entered the transaction security market through our acquisition of Phobos Corporation, and in the quarter just ended we enhanced our ability to succeed in this new marketplace through the acquisition of Ignyte Technology. Ignyte allows us to offer 24x7 technical support via its fully operational Network Operations Center as well as professional services to the large enterprise customer. We have also continued to make significant gains in our access security business. In addition to strong growth in our worldwide installed base, we experienced a 240% growth over last year in our upgrades and services revenues, which grew to 19% of total revenues for the quarter.''

Highlights from the first quarter include:

Increased worldwide installed base of firewall appliances to more than 140,000 units;
SonicWALL ranked the market share leader for VPN-enabled hardware unit shipments to overall and midrange market categories by Infonetics Research;
Completed acquisition of Ignyte Technology to expand technical support and professional services capabilities;
Announcement of a new high performance security ASIC, which accelerates VPN throughput to a maximum speed of 45 Mbps;
Announcement of joint marketing agreement with Cisco for our SSL products.
Cautionary Note Regarding Forward-looking Statements

Certain statements in this press release are ``forward-looking statements'' within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect SonicWALL's actual results include, but are not limited to, the ``Risk Factors'' described in our Securities and Exchange Commission filings, including our Prospectus dated March 16, 2000, and customary risks associated with the acquisitions of companies. All forward-looking statements included in this release are based upon information available to SonicWALL as of the date of the release, and we assume no obligation to update any such forward-looking statement.

About SonicWALL

SonicWALL, Inc. is the leading provider of integrated Internet security appliances offering access security, transaction security and security services for the enterprise, e-commerce, SME and education markets. Core technologies include firewall, VPN, SSL, high availability, anti-virus, strong authentication with digital certificates and content filtering. Together, these products and technologies provide the most comprehensive Distributed Security Architecture available. SonicWALL, Inc. is headquartered in Sunnyvale, CA and trades on the NASDAQ exchange under the symbol SNWL. For more information, contact SonicWALL at 408/745-9600 or visit the company Web site at

Note to Editors: SonicWALL is a registered trademark of SonicWALL, Inc. Other product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

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