3SOF

Thanks eliteG .sincerely

We fail to watch this,
after each down trend it comes back.

52wk Range: 12.86 - 42.85
Volume: 185,305
Avg Vol (3m): 246,471
Market Cap: 348.72M

Technicals
Last Price Quote is:
4.02%above 13-day MA
5.95%above 50-day MA
RS Rating: 89 

Fundamentals
Key Data:
Market Cap (M): $278.63 
P/E Ratio: 35.51 
PEG Ratio: -3.57653 
Next Earnings: N/A
Last Analyst Rating: Positive

Anyone...Anyone...Geez

1)
BCSI: Q1 Adj EPS 43c vs 15c Beats 35c Est; Guidance Above Consensus
Wednesday, August 22, 2007 08:43ET

QUARTER RESULTS
Blue Coat Systems Inc (BCSI) reported Q1 results ended July 2007. Q1 Revenues were $62.40M; +71.33% vs yr-ago; BEATING revenue consensus by +6.16%. Q1 EPS was 14c. Adjusted Q1 EPS was 43c; +186.67% vs yr-ago; BEATING earnings consensus by +22.86%.

Q1 RESULTS      Reported      Year-Ago       Y/Y Chg      Estimate    SURPRISE
----------  ------------  ------------  ----------  ------------  ----------
Revenues:        $62.40M       $36.42M     +71.33%       $58.78M      +6.16%
----------  ------------  ------------  ----------  ------------  ----------
EPS:                 14c               N/A                  N/A              N/A               N/A
Adj EPS:          43c               15c               +186.67%       35c           +22.86%
----------  ------------  ------------  ----------  ------------  ----------

GUIDANCE

Q2-07 Revenue Outlook [$67.00 - $70.00M]: For the fiscal quarter ending October 31, 2007, the Company currently anticipates net revenue in the range of $67 - $70 million. The Q2-07 revenue forecast is above current consensus estimates.
Q2-07 Earnings Outlook [43c - 50c]: On a non-GAAP basis, which excludes the amortization of intangible assets, stock-based compensation expense, and expenses associated with the stock option investigation, net income is expected to be between $8.6 - $10.1 million, or $0.43 - $0.50 per diluted share. The Q2-07 earnings forecast is above current consensus estimates.


ADDITIONAL COMMENTARY:
On August 16, 2007, Blue Coat's Board of Directors approved a two-for-one forward stock split of the Company's common stock. The stock split will be effected by the issuance of a stock dividend of one share of BCSI common stock for each share of BCSI common stock issued and outstanding as of the record date of September 13, 2007. The shares of BCSI common stock resulting from the stock split will be issued by BCSI's transfer agent. Following the stock split, Blue Coat will have approximately 36.3 million shares outstanding, on an as converted basis, based on the number of shares outstanding as of August 21, 2007. BCSI will begin trading on the NASDAQ Global Market on a split- adjusted basis on October 3, 2007. The financial outlook of $0.43 - $0.50 per diluted share referenced above translates to $0.21 - $0.25 per diluted share, reflecting the effect of the stock split.

2)
Blue Coat Reports Financial Results For First Quarter Ended July 31, 2007
Wednesday, August 22, 2007 07:00ET

SUNNYVALE, Calif., Aug. 22 /PRNewswire-FirstCall/ -- Blue Coat Systems, Inc. (Nasdaq: BCSI), a leader in WAN Application Delivery and Secure Web Gateway, today reported its financial results for its first quarter of fiscal 2008 ended July 31, 2007. Net revenue for the first fiscal quarter of 2008 was $62.4 million, an increase of 71% compared to net revenue of $36.4 million for the same quarter last year and a 15% increase compared to net revenue of $54.5 million in the prior quarter.

"We attribute delivery of this quarterly record net revenue to our increasing success in the WAN Application Delivery market," said Brian NeSmith, President and Chief Executive Officer. "Clearly our customers see the value in our unique ability to provide security and high speed application delivery in one appliance, our ProxySG(R) product."

On a GAAP basis, the Company reported net income of $2.6 million, or $0.14 per diluted share, in the first quarter of fiscal 2008, compared to a net loss of $759,000, or $0.05 per diluted share, in the fourth quarter of fiscal 2007. Net income in the first quarter of fiscal 2008 includes $3.3 million in stock- based compensation expense, $1.9 million in expenses associated with the stock option investigation, and $0.4 million in amortization of intangible assets. In the fourth quarter of fiscal 2007, net income includes $2.5 million in legal and accounting expenses associated with the stock option investigation and related restatement of the Company's consolidated financial statements, $1.9 million in stock-based compensation expense, $1.7 million related to payroll taxes, interest and penalties on stock options, and $0.4 million in amortization of intangible assets.

The Company reported non-GAAP net income of $8.3 million, or $0.43 per diluted share, in the first quarter of fiscal 2008, compared to non-GAAP net income of $5.7 million, or $0.31 per diluted share, in the fourth quarter of fiscal 2007.

Blue Coat ended the quarter on July 31, 2007, with cash, cash equivalents, short-term investments, and restricted investments totaling $118 million, an increase of $19 million from the prior quarter.

The non-GAAP financial measures presented above exclude the amortization of intangible assets, stock-based compensation expense, expenses associated with the stock option investigation and related restatement of the Company's consolidated financial statements, and payroll taxes, interest and penalties on stock options. Refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP net income and earnings per share.

Financial Outlook

For the fiscal quarter ending October 31, 2007, the Company currently anticipates net revenue in the range of $67 - $70 million. On a non-GAAP basis, which excludes the amortization of intangible assets, stock-based compensation expense, and expenses associated with the stock option investigation, net income is expected to be between $8.6 - $10.1 million, or $0.43 - $0.50 per diluted share.

Two-for-One Stock Split

On August 16, 2007, Blue Coat's Board of Directors approved a two-for-one forward stock split of the Company's common stock. The stock split will be effected by the issuance of a stock dividend of one share of BCSI common stock for each share of BCSI common stock issued and outstanding as of the record date of September 13, 2007. The shares of BCSI common stock resulting from the stock split will be issued by BCSI's transfer agent. Following the stock split, Blue Coat will have approximately 36.3 million shares outstanding, on an as converted basis, based on the number of shares outstanding as of August 21, 2007. BCSI will begin trading on the NASDAQ Global Market on a split- adjusted basis on October 3, 2007.

The financial outlook of $0.43 - $0.50 per diluted share referenced above translates to $0.21 - $0.25 per diluted share, reflecting the effect of the stock split.

3)
BCSI: Roth Capital Keeps @ Buy; Ups Tgt to $80 vs $58
Wednesday, August 22, 2007 13:45ET
Issuer: Blue Coat Systems Inc (NasdaqNM: BCSI)
Analyst Firm:  Roth Capital Partners Inc.
Ratings Action: REITERATION
Current Rating: Buy
Target Price Action: INCREASE
Target Price: $80.00 (+37.93% from $58.00)

Blue Coat Systems initiated with "buy"

Friday, August 24, 2007 2:02:29 PM ET
Needham & Co

NEW YORK, August 24 (newratings.com) - Analysts at Needham & Co initiate coverage of Blue Coat Systems Inc (BCSI.NAS) with a "buy" rating. The target price is set to $90.

Beats by .06, beats on revs. guidance above consensus.

Blue Coat Reports Financial Results for Second Quarter Ended October 31, 2007
Tuesday November 20, 7:00 am ET 
Achieves Record Net Revenue and 18% Sequential Quarterly Growth


SUNNYVALE, Calif., Nov. 20 /PRNewswire-FirstCall/ -- Blue Coat Systems, Inc. (Nasdaq: BCSI - News), a leader in WAN Application Delivery and Secure Web Gateway, today reported its financial results for its second quarter of fiscal 2008 ended October 31, 2007. Net revenue for the second fiscal quarter of 2008 was $73.4 million, an increase of 85% compared to net revenue of $39.7 million for the same quarter last year and an 18% increase compared to net revenue of $62.4 million in the prior quarter.
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On a GAAP basis, the Company reported net income of $7.0 million, or $0.17 per diluted share, in the second quarter of fiscal 2008, compared to net income of $2.6 million, or $0.07 per diluted share in the first quarter of fiscal 2008. Net income in the second quarter of fiscal 2008 includes $4.0 million in stock-based compensation expense, $0.7 million in expenses associated with the stock option investigation, $0.4 million in amortization of intangible assets, and approximately $0.3 million related to legal settlement expenses. In the first quarter of fiscal 2008, net income included $3.3 million in stock-based compensation expense, $1.9 million in expenses associated with the stock option investigation, and $0.4 million in amortization of intangible assets.

The Company reported non-GAAP net income of $12.4 million, or $0.30 per diluted share, in the second quarter of fiscal 2008, compared to non-GAAP net income of $8.3 million, or $0.21 per diluted share in the first quarter of fiscal 2008.

"It is becoming increasingly evident that the WAN optimization market is evolving in a way that favors our unique approach to stopping the bad and accelerating the good," said Brian NeSmith, president and chief executive officer, Blue Coat Systems. "Our momentum demonstrates that the market is beginning to understand and insist on solving the broader, more strategic issues in application delivery."

Blue Coat ended the quarter on October 31, 2007, with cash, cash equivalents, short-term investments, and restricted investments totaling $152.4 million, an increase of $34.4 million from the prior quarter.

The non-GAAP financial measures presented above exclude stock-based compensation expense, expenses associated with the stock option investigation and related restatement of the Company's consolidated financial statements, amortization of intangible assets, and legal settlement expenses. Refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP net income and earnings per share.

Financial Outlook

For the fiscal quarter ending January 31, 2008, the Company currently anticipates net revenue in the range of $78 - $81 million. On a non-GAAP basis, which excludes the amortization of intangible assets, stock-based compensation expense, and expenses associated with the stock option investigation, earnings per share is expected to be between $0.31 - $0.35 per diluted share.

About Non-GAAP Financial Measures

Blue Coat uses the non-GAAP financial measures of income discussed above for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per share. These measures are not in accordance with, or an alternative to, GAAP. The measures are intended to supplement GAAP financial information, and may be different from non-GAAP financial measures used by other companies. Blue Coat believes that these measures provide useful information to its management, board of directors and investors regarding its ongoing operating activities and business trends related to its financial condition and results of operations. Blue Coat believes that it is useful to provide investors with information to understand how specific line items in the statement of operations are affected by certain items, such as stock-based compensation expense, expenses related to the stock option investigation and restatement of the Company's consolidated financial statements, amortization of intangible assets, restructuring expense, and legal settlement expenses. In addition, the Company's management and board of directors use certain non-GAAP financial measures in developing operating budgets and in reviewing the Company's financial results of operations since items such as stock-based compensation expense, expenses related to the stock option investigation and related restatement of the Company's consolidated financial statements, amortization of intangible assets, restructuring expense, and legal settlement expenses are not considered to impact current resource allocation decisions. The Company believes that inclusion of these non-GAAP financial measures provides consistency and comparability with past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

Conference Call & Webcast

The Company will host a conference call today at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time). Participants should call (612) 332-0932 with the passcode: 893289. A replay of the call will be available starting Tuesday, November 20, 2007 at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time), and can be accessed by calling (320) 365-3844 with the passcode: 893289. An audio Webcast of the call will also be available at http://www.bluecoat.com/aboutus/investor_relations.

About Blue Coat Systems

Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coat's family of appliances and client-based solutions -- deployed in branch offices, Internet gateways, end points, and data centers -- provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. Blue Coat has installed more than 40,000 appliances worldwide. Blue Coat is headquartered in Sunnyvale, California, and can be reached at (408) 220-2200 or http://www.bluecoat.com.

FORWARD LOOKING STATEMENTS: The statements contained in this press release that are not purely historical are forward-looking statements, including statements regarding the Company's expected net revenue, non-GAAP net income and non-GAAP earnings per share in the third fiscal quarter of 2008; and statements regarding Blue Coat Systems' expectations, beliefs, intentions or strategies regarding future events, economic and industry conditions, and market acceptance of its products. All forward-looking statements included in this press release are based upon information available to Blue Coat Systems as of the date hereof, and Blue Coat Systems assumes no obligation to update any such forward-looking statements. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to the risks described in the "Risk Factors" section of the Company's annual report on Form 10-K for the fiscal year ended April 30, 2007 and Form 10-Q for the quarter ended July 31, 2007.


     Media Contact:    Steve Schick
                       Blue Coat Systems
                       [email protected]
                       408-220-2076

     Investor Contact: Carla Chun
                       Blue Coat Systems
                       [email protected]
                       408-220-2318


     Anne Smith
     Loughlin/Michaels Group for Blue Coat Systems
     [email protected]
     408-313-8089



                           BLUE COAT SYSTEMS, INC.
                                   Table 1
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share amounts)

                               Three Months Ended           Six Months Ended
                       October 31,  July 31,  October 31,     October 31,
                          2007        2007      2006        2007      2006
                       (Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
    Net revenue:
      Product            $56,709    $48,076    $30,307    $104,785    $57,567
      Service             16,716     14,327      9,398      31,043     18,553
    Total net revenue     73,425     62,403     39,705     135,828     76,120
    Cost of net revenue:
      Product             10,815      9,819      7,029      20,634     14,246
      Service              5,563      4,792      3,093      10,355      6,126
    Total cost of
     net revenue          16,378     14,611     10,122      30,989     20,372

    Gross profit          57,047     47,792     29,583     104,839     55,748

    Operating expenses:
      Research and
       development        12,709     11,615      9,538      24,324     18,718
      Sales and
       marketing          31,358     28,614     15,444      59,972     29,863
      General and
       administrative      6,792      5,682      8,538      12,474     14,712
      Amortization of
       intangible assets     113        112        206         225        394
      Restructuring reversal   -          -        (19)          -        (19)
    Total operating
     expenses             50,972     46,023     33,707      96,995     63,668

    Operating income/
     (loss)                6,075      1,769     (4,124)      7,844     (7,920)
    Interest income        1,516      1,247      1,092       2,763      1,989
    Other expense           (146)       (43)      (148)       (189)      (268)
    Income/(loss) before
     income taxes          7,445      2,973     (3,180)     10,418     (6,199)
    Provision for
     income taxes            492        331        164         823        282
    Net income/(loss)     $6,953     $2,642    $(3,344)     $9,595    $(6,481)


    Basic net income/(loss)
     per common share      $0.20      $0.09     $(0.12)      $0.30     $(0.22)
    Diluted net income/(loss)
     per common share      $0.17      $0.07     $(0.12)      $0.24     $(0.22)

    Shares used in computing
     basic net income/(loss)
     per common share     34,625     30,424     29,048      32,524     28,864

    Shares used in computing
     diluted net income/(loss)
     per common share     40,835     38,820     29,048      39,951     28,864



                           BLUE COAT SYSTEMS, INC.
                                   Table 2
                NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
    Excluding Amortization of Intangible Assets, Stock-Based Compensation,
     Expenses Associated with the Stock Option Investigation and Related
           Restatement, Restructuring and Legal Settlement Expenses
                   (In thousands, except per share amounts)

                             Three Months Ended           Six Months Ended
                      October 31,  July 31, October 31,      October 31,
                         2007       2007      2006        2007        2006
                     (Unaudited)(Unaudited)(Unaudited)(Unaudited) (Unaudited)

    Net revenue:
      Product            $56,709    $48,076    $30,307    $104,785    $57,567
      Service             16,716     14,327      9,398      31,043     18,553
    Total net revenue     73,425     62,403     39,705     135,828     76,120
    Cost of net revenue:
      Product             10,289      9,211      6,595      19,500     13,382
      Service              5,369      4,559      2,996       9,928      5,892
    Total cost of
     net revenue          15,658     13,770      9,591      29,428     19,274

    Gross profit          57,767     48,633     30,114     106,400     56,846

    Operating expenses:
      Research and
       development        11,437      9,927      8,663      21,364     16,904
      Sales and
       marketing          29,927     26,980     14,575      56,907     27,971
      General and
       administrative      4,923      4,277      2,832       9,200      6,099
    Total operating
     expenses             46,287     41,184     26,070      87,471     50,974

    Operating income      11,480      7,449      4,044      18,929      5,872
    Interest income        1,516      1,247      1,092       2,763      1,989
    Other expense           (146)       (43)      (148)       (189)      (268)
    Income before
     income taxes         12,850      8,653      4,988      21,503      7,593
    Provision for
     income taxes            492        331        164         823        282
    Net income           $12,358     $8,322     $4,824     $20,680     $7,311


    Basic net income per
     common share          $0.36      $0.27      $0.17       $0.64      $0.25
    Diluted net income
     per common share      $0.30      $0.21      $0.14       $0.52      $0.22

    Shares used in computing
     basic net income
     per common share     34,625     30,424     29,048      32,524     28,864

    Shares used in computing
     diluted net income
     per common share     40,835     38,820     35,484      39,951     33,876



                           BLUE COAT SYSTEMS, INC.
                                   Table 3
     RECONCILIATION OF NON-GAAP TO GAAP NET INCOME AND EARNINGS PER SHARE
                   (In thousands, except per share amounts)
                                 (Unaudited)

                                Three Months Ended           Six Months Ended
                          October 31,  July 31,  October 31,    October 31,
                             2007        2007       2006      2007      2006

    Net income excluding
     certain charges and
     benefits (Non-GAAP)    $12,358    $8,322    $4,824    $20,680    $7,311

      Stock-based
       compensation     (1)  (3,966)   (3,349)   (2,581)    (7,315)   (5,525)
      Expenses related
       to stock option
       investigation
       and restatement  (2)    (740)   (1,883)   (5,103)    (2,623)   (7,298)
      Amortization of
       intangible assets
       (Cost of net
       revenue)         (3)    (336)     (336)     (297)      (672)     (594)
      Amortization of
       intangible
       assets (Opex)    (3)    (113)     (112)     (206)      (225)     (394)
      Legal settlement  (4)    (250)        -         -       (250)        -
      Restructuring               -         -        19          -        19

    Net income/(loss)        $6,953    $2,642   $(3,344)    $9,595   $(6,481)

    Diluted net income
     per common share
     excluding certain
     charges and benefits
     (Non-GAAP)               $0.30     $0.21     $0.14      $0.52     $0.22

      Stock-based
       compensation           (0.09)    (0.08)    (0.07)     (0.17)    (0.16)
      Expenses related
       to stock option
       investigation
       and restatement        (0.02)    (0.05)    (0.14)     (0.07)    (0.22)
      Amortization of
       intangible assets
       (Cost of net
       revenue)               (0.01)    (0.01)    (0.01)     (0.02)    (0.02)
      Amortization of
       intangible
       assets (Opex)              -         -     (0.01)     (0.01)    (0.01)
      Legal settlement        (0.01)        -         -      (0.01)        -
      Restructuring               -         -         -          -         -
      Anti-dilution
       adjustment for
       GAAP-based net loss        -         -     (0.03)         -     (0.03)

    Diluted net income
     (loss) per share         $0.17     $0.07    $(0.12)     $0.24    $(0.22)

    Shares used in computing
     diluted net income
     (loss) per common
      share             (5)  40,835    38,820    35,484     39,951    33,876


    (1) Includes stock-based
         compensation as follows:
          Cost of product     $(176)    $(161)    $(137)     $(337)    $(270)
          Cost of service      (187)     (152)      (97)      (339)     (234)
          Research and
           development       (1,175)   (1,102)     (875)    (2,277)   (1,814)
          Sales and
           marketing         (1,384)   (1,114)     (869)    (2,498)   (1,892)
          General and
           administrative    (1,044)     (820)     (603)    (1,864)   (1,315)

        Total stock-based
         compensation       $(3,966)  $(3,349)  $(2,581)   $(7,315)  $(5,525)

    (2)  In fiscal Q2 2008, we recognized approximately $740,000 related to
         professional services associated with the Company's stock option
         investigation and related restatement and payments to former
         employees and tax authorities related to the taxes, penalties and
         interest associated with the repricing of certain stock options.

    (3)  Amortization of intangible assets associated with the acquisitions of
         certain NetCache assets, Permeo Technologies, Inc., Cerberian, Inc.,
         and Ositis Software, Inc., in September 2006, March 2006, November
         2004 and November 2003, respectively.

    (4)  In fiscal Q2 2008, we incurred approximately $250,000 in legal
         settlement expenses.

    (5)  For the second quarter of fiscal 2007, shares used in computing
         diluted net income per common share on a non-GAAP basis differ from
         shares used in computing net loss per common share on a GAAP basis
         since the inclusion of certain instruments on a GAAP basis would have
         been anti-dilutive.



                           BLUE COAT SYSTEMS, INC.
                                   Table 4
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)

                                                  October 31,      April 30,
                                                     2007            2007
                                                  (Unaudited)
    ASSETS
    Current assets:
      Cash and cash equivalents                    $104,346        $50,013
      Short-term investments                         43,033         43,874
      Restricted cash equivalents                     4,197          4,120
      Accounts receivable, net                       40,253         32,079
      Inventories                                       230            489
      Prepaid expenses and other current assets       6,380          7,536
    Total current assets                            198,439        138,111

    Property and equipment, net                      10,558          9,309
    Restricted cash                                     861            861
    Goodwill                                         92,243         92,243
    Identifiable intangible assets, net               5,830          6,650
    Other assets                                      1,387          1,500
    Total assets                                   $309,318       $248,674

    LIABILITIES, REDEEMABLE CONVERTIBLE
     PREFERRED STOCK AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                              $10,231        $12,051
      Accrued payroll and related benefits           18,250         11,710
      Deferred revenue                               51,809         41,910
      Accrued restructuring                               -            238
      Other accrued liabilities                       6,297          5,808
    Total current liabilities                        86,587         71,717

    Deferred revenue, less current portion           17,614         13,858
    Deferred rent, less current portion               1,301          1,585
    Deferred income taxes                               727            483
    Other non-current liabilities                       575            563

    Commitments and contingencies

    Series A redeemable convertible preferred stock       -         41,879

    Stockholders' equity:
      Preferred stock                                     -              -
      Common stock                                        2              2
      Additional paid-in capital                  1,102,734      1,028,409
      Treasury stock                                   (903)          (903)
      Accumulated deficit                          (899,335)      (908,930)
      Accumulated other comprehensive income             16             11
    Total stockholders' equity                      202,514        118,589
    Total liabilities, redeemable convertible
     preferred stock and stockholders' equity      $309,318       $248,674




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Source: Blue Coat Systems, Inc.