Websense, a San Diego maker of Internet security and filtering products, beat Wall Street's expectations for earnings and revenue for its fiscal third quarter.
The company posted sales of $90.4 million and net income of $15.9 million, or 43 cents per share, excluding certain charges.
Wall Street analysts had predicted sales of $89 million and earnings of 39 cents a share, excluding charges.
"In the third quarter, we had double-digit growth in sales to new customers and we started to see a recovery in our international sales territories, with sales outside the U.S. growing by 14 percent," said Chief Executive Gene Hodges. "While our customer retention rates remain solid, we were negatively impacted by fewer upgrades from our installed base in the U.S."
Looking ahead, Websense expects fourth quarter sales of $90 million to $92 million and earnings per share of 32 cents to 35 cents, excluding charges.
Daniel Ives, an analyst with FBR Capital Markets, described Websense's results as "mixed" in a research note Wednesday. He said billings -- a key indicator of future business -- came in below Wall Street's estimates. In addition, Websense's fourth quarter forecast called for little growth.
"It appears that macro headwinds and company-specific challenges in the U.S. are leading to longer sales cycles and to slower upgrades to (the company's latest TRITON product) from Websense's legacy business -- a very challenging dynamic in our opinion given the competitive landscape," Ives wrote.