Product revenue fell 20%
Secure network infrastructure firm SonicWall has reported an 85% decline in net income to $3.45m for the fourth quarter 2008, compared to net income of $23m in the year-ago quarter, on revenue down 3% at $54.25m.
Operating income was $4.83m compared to a loss of $0.89m in the same period last year. Diluted EPS declined to $0.06 from $0.35 last year. The company generated cash flow from operations of $5.4m and shipped 42,000 revenue units in the quarter.
It said product revenue fell 20% to $21.8m, while license and service revenue grew 13% to $32.38m.
For fiscal 2008, the company reported a 83% decline in net income to $4.88m compared to $28.62m a year ago, on revenue up 10% at $218.64m. The company points out that 2007 revenue benefited from a one-time tax benefit, which has impacted subsequent figures.
Matt Medeiros, chief executive at SonicWall, said: In a challenging environment, we gained market share, improved operating margin, and generated strong operating cash flow, all while investing heavily in technology advancement and infrastructure development that will support the future growth of SonicWall.
For the first quarter 2009, the company expects revenue between $48m and $52m, non-GAAP gross margin between 71% and 72%, and diluted EPS between $0.00 and $0.02.