Blue Coat Systems Inc (BCSI, Financial) filed Quarterly Report for the period ended 2011-01-31.
Blue Coat Systems Inc has a market cap of $1.14 billion; its shares were traded at around $26.5 with a P/E ratio of 21.7 and P/S ratio of 2.3. Hedge Fund Gurus that owns BCSI: Whitney Tilson of T2 Partners Management, LP, Joel Greenblatt of Gotham Capital, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns BCSI: Columbia Wanger of Columbia Wanger Asset Management.
Our operating income increased by $7.6 million to $15.4 million in the third quarter of fiscal 2011 compared with the third quarter of fiscal 2010. This increase was attributable to an increase in our gross profit margin from 74.7% in the third quarter of fiscal 2010 to 77.8% in the third quarter of fiscal 2011 and a decrease in operating expenses of $7.0 million in the third quarter of fiscal 2011 compared with the same quarter in fiscal 2010. The quarter- over-quarter gross margin increase resulted from higher gross margins associated with our high-end ProxySG appliance and higher service gross margins associated with the improved efficiency of our worldwide support delivery model. The quarter-over-quarter decrease in operating expenses was primarily driven by a decrease in restructuring charges in the quarter, partially offset by increases in our sales and marketing expenses.
Net deferred revenue was $178.5 million at January 31, 2011 compared with $154.2 million at April 30, 2010. The increase was primarily due to an increase in the sales of renewal service contracts to our customers, which was the result of continued growth in our installed base and improvements in renewal rates for our maintenance contracts.
During the first nine months of fiscal 2011, we generated cash flow from operations of $110.6 million compared with $71.0 million generated in the same period in fiscal 2010. The increase in operating cash flow in fiscal 2011 was primarily driven by higher net income, as well as an increase in working capital sources of cash from higher accounts payable, accrued liabilities, including $4.2 million of proceeds received in connection with the settlement of our derivative litigation, and deferred revenue balances, partially offset by working capital uses of cash from higher accounts receivable and inventory balances at January 31, 2011. Our cash and cash equivalents and restricted cash were $350.9 million at January 31, 2011 compared with $237.3 million at April 30, 2010.
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Blue Coat Systems Inc has a market cap of $1.14 billion; its shares were traded at around $26.5 with a P/E ratio of 21.7 and P/S ratio of 2.3. Hedge Fund Gurus that owns BCSI: Whitney Tilson of T2 Partners Management, LP, Joel Greenblatt of Gotham Capital, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns BCSI: Columbia Wanger of Columbia Wanger Asset Management.
Highlight of Business Operations:
Net revenue, which includes product and service revenue, decreased to $122.9 million in the third quarter of fiscal 2011 from $127.1 million in the third quarter of fiscal 2010. Net product revenue in the third quarter of fiscal 2011 was $73.4 million, a $10.7 million decrease compared with the third quarter of fiscal 2010. We believe this decrease resulted from our need to improve our sales and marketing programs and focus as well as the timing of our new product introductions. Net product revenue primarily consists of revenue from sales of our ProxySG and PacketShaper appliances and licenses to our WebFilter product. We recognized $49.4 million in service revenue in the third quarter of fiscal 2011, a $6.4 million increase compared with the third quarter of fiscal 2010. The increase in service revenue was the result of continued growth in our installed base and the resulting increase in revenue from renewal service contracts.Our operating income increased by $7.6 million to $15.4 million in the third quarter of fiscal 2011 compared with the third quarter of fiscal 2010. This increase was attributable to an increase in our gross profit margin from 74.7% in the third quarter of fiscal 2010 to 77.8% in the third quarter of fiscal 2011 and a decrease in operating expenses of $7.0 million in the third quarter of fiscal 2011 compared with the same quarter in fiscal 2010. The quarter- over-quarter gross margin increase resulted from higher gross margins associated with our high-end ProxySG appliance and higher service gross margins associated with the improved efficiency of our worldwide support delivery model. The quarter-over-quarter decrease in operating expenses was primarily driven by a decrease in restructuring charges in the quarter, partially offset by increases in our sales and marketing expenses.
Net deferred revenue was $178.5 million at January 31, 2011 compared with $154.2 million at April 30, 2010. The increase was primarily due to an increase in the sales of renewal service contracts to our customers, which was the result of continued growth in our installed base and improvements in renewal rates for our maintenance contracts.
During the first nine months of fiscal 2011, we generated cash flow from operations of $110.6 million compared with $71.0 million generated in the same period in fiscal 2010. The increase in operating cash flow in fiscal 2011 was primarily driven by higher net income, as well as an increase in working capital sources of cash from higher accounts payable, accrued liabilities, including $4.2 million of proceeds received in connection with the settlement of our derivative litigation, and deferred revenue balances, partially offset by working capital uses of cash from higher accounts receivable and inventory balances at January 31, 2011. Our cash and cash equivalents and restricted cash were $350.9 million at January 31, 2011 compared with $237.3 million at April 30, 2010.
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