Net income for the first quarter of 2009 calculated in accordance with U.S. generally-accepted accounting principles (GAAP) was $1.7 million, or $0.03 per diluted share. In comparison, GAAP net loss for the first quarter of 2008 was ($66,000), or $0.00 per diluted share.
Non-GAAP net income for the first quarter of 2009 was $3.9 million or $0.07 per diluted share. In comparison, non-GAAP net income for the first quarter of 2008 was $3.2 million, or $0.05 per diluted share. Non-GAAP net income excludes amortization of purchased intangible assets, restructuring charges, 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."
The Company reported first quarter non-GAAP operating margin of 12%. In comparison, non-GAAP operating margin for the first quarter of 2008 was 5%. Non-GAAP Gross margin in the first quarter was 74%, compared to 72% in the first quarter of 2008.
"Our operational results demonstrate our strong commitment to improving profitability," said Matt Medeiros, CEO of SonicWALL. "The progress we have made in our cost structure, cash generation, subscription billings and deferred revenue, while continuing our investment in product innovation, position the company to capitalize on growth when demand conditions improve."
Guidance for Q2 2009
SonicWALL expects second quarter 2009 revenue to be in the range of $46 million to $49 million. The Company expects non-GAAP gross margin to be in the range of 72% to 74% of revenue. SonicWALL expects earnings per share in the second quarter of 2009 to be in the range of $0.06 to $0.07 per diluted share on a non-GAAP basis. On a GAAP basis, the Company expects earnings per share to be in the range of $0.02 to $0.03. GAAP earnings per share expectations are inclusive of a total of approximately $3.0 million, before taxes, in combined amortization of purchased intangibles assets, and share-based compensation expense.
This is the only statement SonicWALL will be giving during the quarter with respect to guidance, unless a decision is made to provide an update.
A conference call to discuss first quarter 2009 results will take place today, April 27, 2009, at 2:00 p.m. PT (5:00 p.m. ET). SonicWALL President and CEO Matt Medeiros and SonicWALL CFO Rob Selvi will host the call. A web cast of the live call can be found at http://www.sonicwall.com/us/company/2518.html. A replay of the call will be available beginning at approximately 5:00 p.m. PT (8:00 p.m. ET) today at the Company's website or by telephone until 5:00 p.m. PT on May 1 at 888-203-1112 (toll-free) or 719-457-0820 (International), passcode 5244162.
About SonicWALL, Inc.
Founded in 1991, SonicWALL, Inc. designs, develops and manufactures comprehensive network security, email security, secure remote access, and continuous data protection solutions. For more information, contact SonicWALL at +1 (408) 745-9600 or visit the company web site at http://www.sonicwall.com/.