By The Associated Press
Friday, September 25, 2009
An analyst downgraded Websense Inc. Friday, saying he expects a decline in the Internet filtering and security software maker's renewal orders in the coming quarters.
FBR Capital Markets analyst Daniel Ives wrote in a note to clients that he expects the company to meet his third-quarter estimate of $82 million in subscription revenue. However, recent field checks show competition and weak spending will pressure orders in the fourth quarter and fiscal year 2010, he said.
Ives downgraded the company to "Market Perform" from "Outperform." He maintained a price target of $18 and fiscal 2009 estimates, but lowered his 2010 revenue estimate to $344.7 million, or $1.33 per share, from $347.2 million, or $1.37 a share.
In morning trading, Websense shares fell 66 cents, or 3.7 percent, to $17.02.