WatchGuard Reports Record Revenues
Q4 Revenues Highlight Expansive Worldwide Growth for Network Security Appliances in 2007; Sets Tone for Fast-Pace 2008
Seattle, WA - January 21, 2008. WatchGuard® Technologies, a global provider of network security solutions, today announced unprecedented financial results for the close of its fiscal 2007 year, culminating in record revenues, four consecutive quarters of increasing revenue growth, cash-positive profitability, accelerating unit sales and market share growth.
"2007 was an exceptional year for WatchGuard and specifically Q4 was a record-breaking quarter - the highest quarterly revenue in the company's history," said Joe Wang, CEO at WatchGuard. "Significantly improved execution coupled with investments in our business, technology, and regional markets around the globe have resulted in record numbers, success across market segments and geographies, and have laid the groundwork for continued growth in 2008."
Financial Highlights
For 2007, WatchGuard consistently grew top line revenue, with each quarter exceeding the previous. Financial highlights include:
o Year-over-year Q4 revenue growth of 17 percent;
o Accelerated revenue growth through 2007, with all four quarters having year-on-year growth exceeding each previous quarter;
o Profitability for all four quarters in 2007;
o Increased global sales of WatchGuard Firebox® X network security appliances with high-end appliance sales growing significantly, double of sales a year ago;
o Dramatic growth of WatchGuard LiveSecurity® attach and renewal rates.
"WatchGuard gained solidly in all areas, with strong regional growth in Europe, Asia Pacific and North America," said Bob Chamberlain, CFO at WatchGuard. "With this momentum, WatchGuard expects continued sales growth of our award-winning network security solutions, and greater penetration among enterprise and key verticals, such as education, healthcare and retail."
Business Highlights
The year also marked several noteworthy developments, market and business improvements at the company. Notably, these include:
o New executive management and aggressive engineering, sales and marketing talent recruitment;
o Capture of leading market share positions for UTM and VPN network security appliances;
o Increasing adoption among mid-market and enterprise customers;
o Robust worldwide channel expansion resulting in multiple awards and industry recognition for WatchGuard as a "best seller," "most likely to buy," and "reader's choice."
Technology Highlights
WatchGuard effectuated a variety of substantive product and technology innovations that invigorated and catalyzed product sales. Highlights of the company's technology developments include:
o WatchGuard Firebox X appliance performance improvements firmly positioning them as price/performance market leaders
o Product enhancements to command a greater lead in reliability and enhanced multi-function network security capability;
o Improved capabilities to block spam, viruses, malware, phishing and other e-mail and network attacks;
o Improving power consumption, making WatchGuard Firebox X appliances "greenest in the industry."
Wang concludes, "WatchGuard is poised to build upon its financial, business and technology momentum and turn 2008 into a stellar year. With new market, product and channel developments on the horizon, WatchGuard is well positioned to meet and exceed next generation security demands for businesses around the world."
About WatchGuard Technologies, Inc.
Since 1996, WatchGuard® Technologies, Inc. has been the advanced technology leader of network security solutions, providing mission-critical security to hundreds of thousands of businesses worldwide. The WatchGuard Firebox® X family of wired and wireless unified threat management appliances provide extensible network security, in-depth analysis, and unparalleled network visibility, management and control. WatchGuard products are backed by WatchGuard LiveSecurity® Service, an innovative support, maintenance, and education program. WatchGuard is headquartered in Seattle and has offices serving North America, Europe, Asia Pacific, and Latin America. To learn more, visit www.watchguard.com.
Contacts:
Chris McKie
WatchGuard Technologies
206.613.3760
Abbie Kendall
Tabor Communications
503.816.1067
