Blue Coat “Scored Strongest” in WAN Optimization Report

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it has “scored strongest among leaders” in the newly issued November 2009 The Forrester Wave™: WAN Optimization, Q4 2009. According to the report, Blue Coat ”scored strongest” among the eight vendors evaluated in the WAN optimization market.

The report states that Blue Coat appliances are " one of the most user-friendly offerings in this space, with policy and configuration templates and wizards, device auto-discovery, automated device configuration, and an object-oriented or visual policy manager, along with a basic startup time of 66 seconds.” Forrester further states that by “leveraging its PacketShaper product, Blue Coat allows for identification of applications, enhancing the visibility of traffic due to its ability to classify more than 600 applications along with the ability to add classifications for custom applications, defined by the administrator — making Blue Coat a clear leader in application visibility in the WAN optimization market.”

"We believe achieving a leading position in the Forrester Wave™ report, WAN Optimization, Q4 2009 recognizes the unique approach Blue Coat has applied to WAN optimization by first starting with application visibility and then applying acceleration, security or control technologies as appropriate to the nature or business value of the application or content,” said Bethany Mayer, senior vice president, Worldwide Marketing and Corporate Development for Blue Coat Systems. “WAN optimization is no longer about blind, indiscriminate acceleration but, rather, optimizing and securing the flow of information to any user, on any network, anywhere.”

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Enhances WebFilter Database for Greater Policy Flexibility

Blue Coat Systems, Inc. the technology leader in Application Delivery Networking, today announced that it has enhanced its Blue Coat® WebFilter database to provide IT managers with more granular control over Web-based multimedia applications and greater proactive protection against Web-based threats. Blue Coat has added 10 new categories to WebFilter, including six network usage-related and four security-related categories, to expand the total number of categories to more than 80. With categories that reflect current usage of Web-based applications and content, Blue Coat enables distributed enterprises to establish more flexible corporate IT policies and gain a more detailed understanding of user behavior.

“As businesses adopt new Web-based applications and set corporate IT policies around new content, they require a flexible set of tools that reflects current user behavior,” said Carrie Oakes, vice president of product marketing and management at Blue Coat Systems. “Blue Coat has leveraged its in-depth Web awareness to establish new categories for WebFilter based on current Internet use cases, enabling businesses to implement flexible policies that protect and boost the productivity of their employees.”

Granular Categories Enable Flexible IT Policies
To provide more granular monitoring and control capabilities, particularly in regard to multimedia use on the Web, Blue Coat has added six new categories to WebFilter. Those categories include media sharing, art/culture, Internet telephony, network errors, TV/video streams and radio/audio streams. Web-based multimedia applications have evolved rapidly, and now many businesses use them on a regular basis. Legacy URL categories that do not distinguish between the many different types of multimedia applications force companies to adopt inflexible, draconian policies.

With the addition of categories for TV/video and radio/audio streams and media sharing, Blue Coat WebFilter provides the most granular categories for Web-based multimedia applications in the industry. These new categories complement WebFilter’s existing categories for media downloads and audio/video clips and address the changing adoption of multimedia applications within businesses.

Blue Coat WebFilter is the only URL filtering solution to differentiate and categorize long stream radio and video from short streams that are less than 15 minutes. This ability enables businesses to create more flexible, granular IT policies around multimedia. For example, a business could allow shorter audio/video clips during normal business hours but only allow bandwidth consuming TV/video streams after business hours. Alternatively, using Blue Coat ProxySG appliances, security administrators could limit bandwidth for TV/video streams, which would protect business applications.

New Categories Increase Proactive Protection Against Web-threats
According to Symantec, in 2008, 60 percent of all known malware was newly created. That trend has continued unabated through 2009. To provide businesses with the tools they need to mitigate exposure to those Web-based threats, Blue Coat has added four new categories to WebFilter, including potentially unwanted software, online meetings, translation and greeting cards. The addition of these categories enables businesses to set granular security policies that are flexible and protect users from potential threats that exploit these Web-based applications.

Translation sites can be useful for global businesses but can also pose a security risk as a point of unintentional data leakage. With Blue Coat WebFilter, rather than simply blocking translation sites, businesses can deploy coaching pages to remind users of the potential security risk and advise them not to translate proprietary information. A business could also block text translations but allow full Web page translations. WebFilter pioneered the categorization of fully translated Web pages into appropriate content categories for compliance with corporate IT policies. This flexibility enables the employee to access a useful application while mitigating the potential dangers.

The addition of a category for online meetings enables enterprises to establish granular policies for Web-based communications that can improve collaboration. With Blue Coat® ProxySG® appliances, IT managers can provision protected bandwidth for URLs in the online meeting category, delivering a higher quality end user experience.

Blue Coat WebFilter is unique in that it also provides a category for spyware effects/privacy concerns, which categorizes URLs that are used to disseminate instructions to botnets or act as “phone home” sites for collecting personal information. This category complements the malware/spyware sources category, which identifies URLs that host or distribute malware. With two distinct categories, IT managers can identify infected computers that are attempting to call “phone home” sites in real time and perform forensic analysis. The ability to quickly identify computers that are trying to access URLs in this category reduces the time that IT mangers would otherwise spend isolating potentially infected computers.

To further enhance protection against malicious content, Blue Coat WebFilter also includes a category for suspicious URLs that rates new sites and domains against Web reputation factors. New URLs that return risky reputation factors are temporarily rated suspicious until confirmed to be malicious or not. Upon verification, the URLs will be categorized in one of Blue Coat’s malicious categories or other content categories.

Simultaneous Categorizations Enable Detailed Reporting
In addition to supporting more than 80 categories, Blue Coat WebFilter also supports customer categories and allow/deny lists that provide additional flexibility for security administrators to provide users with access to the applications they need to be productive.

Blue Coat WebFilter can assign URLs to up to four categories, enabling businesses to create more flexible IT policies. For example, an online news publication would be classified in the news category while the sports section of that publication would be classified under both the news and sports categories. If, during the Olympics, a company wanted to block access to or use coaching pages for the sports section, it could do so through policy without blocking access to the entire news site. The ability to assign URLs to multiple categories also enables businesses to generate more detailed reports on specific user behavior.

WebFilter users are automatically protected by the Blue Coat WebPulse™ collaborative cloud defense service. As a cloud-based defense, WebPulse continuously shares threat data with an extended global community that is designed to protect more than 62 million users around the world from malicious content. The discovery of a Web threat by one of the users immediately protects all users without requiring downloads or continuous update cycles.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat ProxySG Wins Computerworld Singapore Readers Choice

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that the Blue Coat® ProxySG® appliance was awarded the Computerworld Singapore Readers Choice and Computerworld Malaysia Readers Choice awards in the WAN Accelerator category. Blue Coat ProxySG appliances offer a comprehensive solution for accelerating the response time for branch office employees accessing centralized enterprise applications and files. ProxySG appliances also provide a platform for branch office video delivery and management and Web security and control for direct Internet access.

"These awards are validation that enterprise users value the more comprehensive approach to WAN optimization that Blue Coat delivers to solve application challenges in the branch office," said Matt Young, vice president, Asia Pacific region, Blue Coat Systems. “ProxySG appliances can accelerate enterprise applications, live and on-demand video, Web content, cloud-based Software-as-a-Service applications and anything that goes through a browser to meet application demands of branch offices throughout Asia Pacific.”

WAN optimization is a foundational technology in the Blue Coat Application Delivery Network (ADN) infrastructure. By combining visibility, acceleration and security technologies, the Blue Coat ADN infrastructure enables network managers to optimize and secure the delivery of applications across the distributed enterprise.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

South Asia’s Largest Logistics Company Gains Application Accountability

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that Blue Dart, South Asia’s leading express air and integrated transportation, distribution and logistics company, has deployed Blue Coat® PacketShaper® appliances to more efficiently utilize network resources to deploy new advanced services. Blue Coat PacketShaper appliances deliver the application accountability that enables Blue Dart to reclaim bandwidth on the network for videoconferencing deployments throughout its branch offices.

Speaking about the deployment, Gautam Sen, senior manager, electronic network at Blue Dart Express Ltd, said, “Prior to the deployment of the Blue Coat solution, we needed to increase our bandwidth every year to make our applications run better. With PacketShaper appliances, we are optimizing our bandwidth by effectively monitoring and managing our applications. As a result, we have not only realized a full return on our investment in less than a year but also were able to deploy video conferencing in our branch offices without adding additional bandwidth.”

Blue Coat PacketShaper appliances enable Blue Dart to gain accountability over its applications through application-level visibility, enhanced intelligence and integrated policy-based controls. Prior to deploying Blue Coat PacketShaper appliances, Blue Dart relied on Layer 2 and Layer 3 information to optimize its network, which could not provide in-depth visibility into the applications. With PacketShaper appliances, Blue Dart now has granular application-level visibility into applications on the network, the performance and characteristics of those applications as well as the end user experience.

PacketShaper appliances can identify more than 600 applications and monitor more than 100 metrics per application session, providing network administrators with the in-depth information they need to understand the impact of applications on the network. Utilizing the detailed application intelligence that PacketShaper provides, Blue Dart can set bandwidth limits, classify and prioritize business-critical applications and maintain quality of service levels on an application basis from a single integrated workspace. This enables Blue Dart to optimize its network and reclaim bandwidth for more strategic use. With that reclaimed bandwidth, Blue Dart successfully deployed videoconferencing services across its branch offices, increasing collaboration among its employees to create a more productive work environment.

“Blue Coat PacketShaper appliances deliver the application accountability that enables distributed enterprises to measure the impact of applications on the network and optimize the network accordingly,” said Matt Young, vice president for APAC at Blue Coat Systems. “By introducing application visibility, intelligence and control into its network with PacketShaper appliances, Blue Dart can more efficiently and effectively align its network investments with business priorities.”

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Expands WebPulse Cloud-based Defense

Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today announced that it has expanded the Blue Coat® WebPulse™ cloud-based service to recognize, analyze and categorize Arabic Web content in addition to more than 50 languages already supported. With the ability to analyze the Arabic language, the WebPulse service can more efficiently categorize a larger percentage of Web content and enable enterprises to set and enforce granular corporate IT policies accordingly.

To provide a more comprehensive profile of Web content and deliver the most effective protection against emerging and evolving Web-based malware, Blue Coat continues to expand its investment in the WebPulse service. In March, Blue Coat added a new data center in Hong Kong to increase performance for regional customers while increasing the visibility and protection benefits for all users in the global community. Additionally, Blue Coat has enhanced the threat analysis of the WebPulse service to more efficiently identify malicious content.

“With the addition of Arabic to the languages that WebPulse can analyze, we continue to invest in the WebPulse service to build a comprehensive profile of Web content,” said Mikko Valimaki, chief scientist at Blue Coat Systems. “This increased Web awareness coupled with the ability to protect users from new and emerging Web-based threats creates a flexible defense against malware and other malicious content.”

Arabic is spoken by more than 280 million people as a first language and 250 million as a second language, ranking it as the fifth most widely spoken language in the world. It is also one of the six official languages of the United Nations.

The Blue Coat WebPulse service is the first cloud-based community watch environment to utilize Dynamic Link Analysis, which combines URL filtering and anti-malware techniques to protect users against Web-based threats that rely on dynamic links. The WebPulse service also leverages multiple threat engines, in addition to machine analysis and review by human raters, to dynamically assess more than one billion real-time URL requests per week and to provide a proactive layer of defense against malicious content. Results are immediately available to all users in the WebPulse community, protecting more than 62 million users around the world against known and new malicious content without requiring downloads or other update cycles.

The Blue Coat WebPulse service is a distributed global network with eight data and content rating centers. Blue Coat WebFilter customers are automatically protected by the service. Blue Coat ProxyClient™ software, which is available at no cost for WebFilter customers, also provides automatic protection for remote workers and can be enabled through ProxySG® appliances with a one-click option. Protection by the WebPulse service is a built-in feature of Blue Coat K9 ™ Web Protection for consumers.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Announces Employee Inducement Award

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today reported that on September 17, 2009, it awarded a stock option covering 100,000 shares to Gordon C. Brooks, who recently joined the Company as senior vice president and chief financial officer. The option has been classified as a non-qualified stock option, has an exercise price equal to the fair market value on the grant date, has a ten year term and vests over four years, with 25 percent vesting on the one year anniversary of Mr. Brooks’ initial date of employment and an additional 2.0833 percent vesting each month thereafter until fully vested.

In accordance with NASDAQ Listing Rule 5635(c)(4), the award was not made under a stockholder approved equity incentive plan. NASDAQ rules require a public announcement of equity awards that are not made under a stockholder approved plan. The foregoing award was approved by Company’s Compensation Committee in accordance with the provisions of the Company’s Equity Award Policy.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Extends Lead in WAN Optimization Market

Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today announced that it extended its lead in the Wide Area Network (WAN) optimization market for the second straight quarter, according to the latest market share report from Infonetics Research. Blue Coat also increased its market share nearly seven percentage points to 31.4 percent in the second quarter from 24.8 percent a year ago.

“Our expanding market share position is a strong validation that enterprises value the Blue Coat approach to WAN optimization that accelerates only relevant, business-critical applications while mitigating the impact of unwanted or recreational applications,” said Bethany Mayer, senior vice president of worldwide marketing and corporate development. “Blue Coat appliances deliver intelligent acceleration that enables enterprises to optimize their WANs according to business priorities without additional investments in bandwidth.”

Infonetics Research forecasts that the WAN optimization appliance market will grow by 50 percent over the next three years from 953 million in 2009 to $1.4 billion in 2012.

WAN optimization is a foundational technology in the Blue Coat Application Delivery Network (ADN) infrastructure. By combining visibility, acceleration and security technologies, the Blue Coat ADN infrastructure enables network managers to optimize and secure the delivery of applications across the distributed enterprise.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

New PacketShaper Release Provides Application Accountability

New User Workspace Integrates Real-Time Visibility with Application Intelligence and Policy-Based Control for Next Step in Application Delivery Networks. Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced an enhanced version of software for its Blue Coat® PacketShaper® appliances. PacketShaper 8.5 appliances provide a new level of tightly integrated application visibility, enhanced application intelligence and policy-based control that together bring application accountability to the enterprise network. Application accountability enables businesses to better assure the quality of bandwidth-hungry business-critical applications and communication, including telephony and video conferencing, while controlling usage of progressively more taxing recreational applications.

The new PacketShaper 8.5 release uses integrated workflows to enable more detailed application understanding with real-time monitoring, historical reporting and policy-based QoS controls. It provides an intuitive, fully integrated workspace that visually shows critical application behavior and displays the immediate effect of applied QoS through an intuitive user interface. Similar applications can be automatically grouped together in class of service categories, such as peer-to-peer (P2P), games or instant messaging, for ease of management. In addition, PacketShaper appliances now provide more granular visibility and control over voice, video and virtualized applications.

"Despite the many types of security appliances and packet filters on the market, application identification and control continue to be an Achilles heel for large organizations," said Jon Oltsik, principal analyst at the Enterprise Strategy Group. "Blue Coat's new release of PacketShaper addresses this issue by providing concise analysis of the actual application traffic traversing the network and offering management tools for application control. Armed with these capabilities, IT and security professionals can make intelligent decisions about controlling applications."

Application Accountability
Application accountability is now possible due to the combination of existing PacketShaper technology with the addition of integrated workflows. The result is application visibility based on greater application intelligence, including understanding application behavior over a period of time and across a flow of packets rather than basing an assessment on a single packet at a single instance of time. It also takes into consideration peaks or surges in bandwidth demands as well as the sustained or average consumption and behavior and overcomes the limitations of conventional deep packet inspection.

Based on more detailed application visibility, application accountability provides enhanced quality for important applications, including voice, video and real-time sessions. It also manages applications to allotted bandwidth consumption and prevents them from impinging on the performance of other applications due to unexpected surges or changes in behavior. The PacketShaper administrator workspace uses integrated workflows to display real-time graphing of applications running across the network, including peak bandwidth demands. The graphs also show the immediate effect of bandwidth management when it is applied.

“Businesses need to understand what applications are consuming network capacity so that they can align network resources with business priorities,” said Bethany Mayer, senior vice president, Worldwide Marketing and Corporate Development. “PacketShaper appliances now provide Application accountability to enhance the quality of business-critical applications and communication while providing the means for companies to regain network control.”

Precision in Managing Virtualized Desktops
PacketShaper 8.5 adds the capability to specifically identify and manage network traffic from VMware View Virtual Desktop Infrastructure (VDI) applications on a granular basis. PacketShaper appliances, with this new software release, can prevent VDI set-up and downloads from temporarily dominating WAN capacity. At the same time, used in conjunction with Blue Coat® ProxySG® appliances, they can dramatically reduce the amount of time to load a virtualized desktop onto a remote computer in a branch office.

With the new release, PacketShaper appliances can now distinguish between the various VMware operations, including, configuration and login, offline desktop downloads and synchronization and VDI Remote desktop streaming. Through more granular visibility and control, PacketShaper appliances help latency-sensitive interactive streaming sessions work as intended, while set-up and large downloads do not monopolize the Wide Area Network (WAN) and prevent other traffic from flowing as expected.

Blue Coat recently joined the VMware Technology Alliance Partner Program and will be demonstrating its solution for VMware View ADI applications at VMworld 2009 in San Francisco, Calif. from August 31 to September 3 (see separate press release).

Enhanced Intelligence: Auto-Discovery of VoIP Handsets and Soft Phones
PacketShaper 8.5 can automatically identify voice traffic and distinguish between different devices or applications using voice, even if the same protocols and codec are used for both. For instance, PacketShaper can distinguish between a call using a specific make or model of an enterprise VoIP phone system and a consumer voice application, such as email or instant messaging with voice support. Policies to support quality of voice calls can now be applied to the enterprise phone system rather than to individual software applications used by employees. In addition, the new PacketShaper release offers the ability to specifically identify and manage voice and video within Microsoft Live Meeting or Office Communications Server (OCS).

Application Accountability Advances Application Delivery Networks
Blue Coat PacketShaper appliances, combined with ProxySG appliances, are the foundation of an Application Delivery Network for optimizing and securing the flow of information to any user on any network, anywhere. Application Delivery Networks start with application visibility to determine exactly what is running over the WAN or Internet gateway and treat it according to policy. The ability to determine the exact application and whether it is business-critical, recreational or malicious is essential to maintaining the quality of important applications while managing or curtailing recreational or malicious ones. The new ability for PacketShaper to provide application accountability advances application visibility and control to more fully deliver the value of an Application Delivery Network.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Announces Participation in Upcoming Investor Conferences

Blue Coat Systems, Inc. (NASDAQ: BCSI), the technology leader in Application Delivery Networking, today announced Brian NeSmith, president and chief executive officer of Blue Coat Systems, will be speaking at the following investor conferences in its second quarter of fiscal 2010.

* ThinkEquity’s Sixth Annual Growth Conference on September 15 in San Francisco
* Deutsche Bank’s 2009 Technology Conference on September 16 in San Francisco
* William Blair & Company’s Emerging Growth Stock Conference on October 6 in New York

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Remains Market Leader for Content Security Gateway Appliances

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it remained the worldwide market share leader in the Content Security Gateway Appliance market for the second calendar quarter of 2009, according to a recent report from Infonetics Research. Blue Coat increased its market share in the second quarter to 23.6 percent. Blue Coat has led this market since Infonetics initiated tracking at the beginning of 2007.

“Blue Coat continues to lead the market quarter after quarter on the strength of its visibility into Web content and ability to use that visibility to protect against new and emerging Web-based attacks,” said Bethany Mayer, senior vice president of worldwide marketing and corporate development at Blue Coat Systems. “The comprehensive approach to protection that we deliver is clearly what the market wants to combat cybercriminals that are constantly changing their methods to launch an increasing number of malicious exploits.”

According to Infonetics, the Content Security Gateway Appliance market is expected to grow from $1.2 billion in 2009 to $1.9 billion in 2011.

Blue Coat® ProxySG® appliances provide visibility into Web content that enables enterprises to set, enforce and measure compliance to corporate IT policies that control recreational applications and optimize bandwidth. ProxySG appliances also deliver a multi-layered, proactive defense against malware, spyware, phishing and other malicious content. The Blue Coat® WebPulse™ cloud-based service delivers community-based intelligence to protect against new malware sources and rate unknown content. The discovery of malware by one member of the community immediately protects all other members. Blue Coat® ProxyAV™ appliances and Blue Coat® WebFilter software also provide additional protection against malicious content.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Reports Financial Results for First Fiscal Quarter 2009

Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today reported its financial results for its first fiscal quarter ended July 31, 2009. Total net revenue for the first quarter of fiscal 2010 was $116 million, an increase of 13% compared with net revenue of $103 million in the first quarter of fiscal 2009, and an increase of 2% compared with net revenue of $114 million in the fourth quarter of fiscal 2009.

“Blue Coat delivered solid quarterly results in a challenging economic environment,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “In the first quarter, our revenue and non-GAAP EPS performance met our expectations, and we experienced good cash generation. Importantly, we improved non-GAAP operating profitability, as driving better leverage in our business model continues to be a strategic initiative for Blue Coat in 2010.”

NeSmith added, “Blue Coat continues to gain share in the WAN optimization market with its Application Delivery Network value proposition, which provides customers with unmatched visibility, acceleration and security. Going forward, we intend to improve operating efficiencies across all areas of the company, while also funding critically important initiatives to strengthen the competitiveness of our solutions and extend our leadership role in the market.”

On a GAAP basis, the Company reported net income of $4 million, or $0.09 per diluted share, in the first quarter of fiscal 2010, compared with net loss of $6 million, or $(0.15) per share, in the first quarter of fiscal 2009, and net loss of $3 million, or $(0.09) per share, in the fourth quarter of fiscal 2009.

The Company reported non-GAAP net income of $10 million, or $0.23 per diluted share, in the first quarter of fiscal 2010, compared with non-GAAP net income of $7 million, or $0.16 per diluted share, in the first quarter of fiscal 2009, and non-GAAP net income of $8 million, or $0.19 per diluted share, in the fourth quarter of fiscal 2009.

Non-GAAP net income excludes charges related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and assumes a long term effective tax rate of 30% on non-GAAP pre-tax income. A discussion of non-GAAP financial measures is provided under the section “About Non-GAAP Financial Measures” later in this press release. A detailed reconciliation of the GAAP to non-GAAP financial measures is included in Table 2 of this press release.

The Company ended the quarter on July 31, 2009, with cash, cash equivalents, and restricted cash of $123 million, an increase of $8 million from the prior quarter. Cash flow provided by operations in the first quarter of fiscal 2010 was $11 million.

Financial Outlook

For the second quarter ending October 31, 2009, the Company currently expects net revenue in the range of $116 to $121 million. On a GAAP basis, the Company currently expects net income of $0.08 to $0.14 per diluted share. On a non-GAAP basis, the Company currently expects net income of $0.23 to $0.28 per diluted share. For the second quarter of fiscal 2010, the Company is assuming a diluted share count of approximately 45 million shares.

About Non-GAAP Financial Measures

The Company uses non-GAAP financial measures of income for internal evaluation and to report the results of its business. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, and non-GAAP diluted net income per share. These measures are not in accordance with, nor an alternative to, GAAP. These measures are intended to supplement GAAP financial information, and may be different from non-GAAP financial measures used by other companies. The Company 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. The Company 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 the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and income tax adjustments. 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 expense related to the fair value write-up of acquired inventory sold, stock-based compensation expense, amortization of intangible assets, expenses for matters related to the stock option investigation, restructuring expenses, and income tax adjustments do not impact its current resource allocation decisions. Additionally, the Company believes that inclusion of these non-GAAP financial measures provides consistency and comparability with its past reports of financial results. However, investors should be aware that non-GAAP measures have inherent limitations and should be read in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Refer to the accompanying tables for a detailed reconciliation of GAAP to non-GAAP gross profit, operating income, net income and net income per share.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Names Gordon Brooks Chief Financial Officer

Blue Coat Systems, Inc. the technology leader in Application Delivery Networking, today announced the appointment of Gordon C. Brooks to the position of senior vice president and chief financial officer. Mr. Brooks will join the company on September 1, 2009, and comes to Blue Coat with more than 20 years of financial, accounting and merger and acquisition experience.

“I am pleased to welcome Gordon to the Blue Coat executive management team,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “Gordon brings tremendous experience and proven judgment and will be a valuable contributor in guiding our company forward as the technology leader in Application Delivery Networking.”

Mr. Brooks will lead Blue Coat’s worldwide finance and accounting organization and will report directly to Brian NeSmith, president and chief executive officer.

Mr. Brooks, age 47, joins Blue Coat from VMware where he served as vice president, corporate finance, following his role as chief financial officer for Spikesource, Inc. Prior to Spikesource, Mr. Brooks served as senior vice president of finance and corporate controller for BEA Systems, Inc. Before BEA Systems, Inc., he served in several other high-tech companies, including Microsoft and WebTV Networks. Mr. Brooks began his career as an auditor for Ernst & Young, LLP. He has a Master of Accounting from the University of Southern California.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Technology Expert Examines IPv6 Application Development

Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that its senior architect, Qing Li, has co-authored with Jinmei Tatuya and Keiichi Shima two new derivative reference books on Internet Protocol version six (IPv6) core protocols, IPv6 Socket API Extensions: Programmer's Guide and Mobile IPv6: Protocols & Implementation, recently published by Morgan Kaufmann.

“As networks become increasingly IPv6-ready, attention has shifted to developing the applications and mobility support for those networks,” said Qing Li, IPv6 technology leader at Blue Coat addressing his two newly published reference books on IPv6 technology development. “While both IPv6 and IPv4 co-exist, there will be a transition period that will require unique tools to guarantee uninterrupted application delivery over local networks, mobile networks and the Internet. Application and software developers should be aware of the transition issues and make conscious design decisions that can assist in the successful migration to IPv6.”

In the first new book, IPv6 Socket API Extensions: Programmer's Guide, Qing and his co-authors illustrate how to write portable applications that can run on either IPv4 or IPv6 networks and provides an introduction to the IETF standards for IPv6 application program interfaces.

“The major operating systems that are used in commercial, business and consumer environments are now implementing IPv6, acceleratingthe transition from IPv4 to IPv6. The increased availability of IPv6-specific applications, services and content will also continue to fuel this transition,” said Qing. “During this period, portable software that can run on both IPv4 and IPv6 networks will be critical to ensuring business process continuity and success.”

The second new reference book, Mobile IPv6: Protocols & Implementation, Qing and his co-authors examine mobile IPv6 as anenabling technology for multimedia services and devices worldwide, including cellular systems, multi-access network handovers, location privacy and enterprise mobile networking.

“With the growing adoption of mobile applications and devices, mobile IPv6 will be critical to ensuring a successful transition to IPv6,” said Qing. “By maintaining the existing connections through which the mobile device is communicating while the address changes, mobile IPv6 provides a mechanism that enables IPv6 devices to communicate seamlessly.”

Qing works on the design and development of Blue Coat application delivery network technologies, including IPv6 implementations. In addition, to his most recent books, Qing has co-authored a prominent two-volume reference series on IPv6, IPv6 Core Protocols Implementation and IPv6 Advanced Protocols Implementation.

In June, at Interop Tokyo, Blue Coat demonstrated a secure migration path for applications and services from IPv4 to IPv6. With an intelligent IPv6 proxy appliance acting as an intermediary, the retrieval of applications, services and data in either an IPv4 or IPv6 environment is transparent to the users. This migration strategy will ensure business process continuity without the complications associated with address translations, rewriting applications or upgrading the underlying network infrastructure.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Shiseido China Co., Ltd. Deploys Blue Coat Solution

Blue Coat WAN Optimization Solution Improves Data Backup Speed from 40 Hours to Just Four and Reclaims Bandwidth. Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today announced that Shiseido China Co., Ltd. has deployed Blue Coat ProxySG appliances, resulting in dramatically reduced data backup windows across its distributed network. Using the Blue Coat appliances for WAN optimization, the time expended in data backup for communications between its Beijing and Shanghai offices has been reduced from 40 hours down to 4 hours. At the same time, its remote data backup activities now consume 40 percent less WAN bandwidth.

“The Blue Coat solution has brought tremendous performance optimization for Shiseido. With Blue Coat ProxySG appliances, the WAN links between Shiseido’s data centers in Beijing and Shanghai has been dramatically improved by the reduction of bandwidth costs and increase of application efficiency.” said Jiang Meihua, Systems Technical Manager of Shiseido China Co., Ltd. ”We firmly believe that the Blue Coat WAN optimization solution will play a powerful role in our network operations.”

Before installing Blue Coat appliances, Shiseido had conducted a 40 hour data exchange and system backup between its Beijing and Shanghai offices every weekend. As the amount of data escalated, the company recognized that the data transfer between the two offices might soon spill into the normal workweek and interfere with its normal network and application traffic, as well as seriously impacting its capacity for disaster recovery.

"When distributed enterprises encounter the problem of slow network performance for application response time or backup, the first reaction is to scale bandwidth of the Wide Area Network,” said Matt Young, vice president, Asia Pacific region, Blue Coat Systems. “However, unless the root cause of the problem is identified, simply expanding the bandwidth will not remedy slow, unpredictable access to applications. Like Shiseido, enterprises should instead focus on how to improve application delivery. Blue Coat ProxySG appliances for WAN optimization enable enterprises to optimize the delivery of business-critical applications, while reducing bandwidth consumption and gaining control of their network."

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Enhances PacketShaper Appliances to Provide Visibility into Twitter

Continued Investment in PacketShaper Appliances Provides Customers the Ability to Align IT Policies with Business Requirements. Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today announced that it has added Twitter to the applications that Blue Coat® PacketShaper appliances can discover, monitor and control. With the ability to identify more than 600 applications, PacketShaper appliances enable enterprises to gain a comprehensive understanding of how employees utilize social networking tools and set policies to manage them.

“Understanding which social media tools are being utilized and how employees are using them is valuable information that helps network administrators set and enforce corporate policies,” said Steve House, Director of Product Marketing at Blue Coat Systems. “Blue Coat PacketShaper appliances provide the visibility, actionable intelligence and control that enable enterprises to fully realize the value of their network investments.”

According to statistics from Nielsen NetView, there were seven million unique visitors to Twitter in February 2009, an increase of 1,374 percent from February2008. This increase is consistent with continued growth in enterprise adoption of social networking tools. According to a survey by Awareness, 75 percent of employees were already using social networking sites for business purposes in 2008, an increase of 15 percent from 2007. The same survey also found that 61 percent of businesses use social networking to improve communication and collaboration.

Using Blue Coat PacketShaper appliances, enterprises have the ability to see and control Twitter, which allows them to set appropriate IT policies to either enable or control collaboration. PacketShaper appliances can identify and classify more than 600 applications and can monitor more than 100 metrics per application session. This in-depth visibility enables network managers to limit the impact of recreational applications and optimize the performance of business applications by applying granular controls such as bandwidth guarantees, limits, prioritization and other quality of service mechanisms.

With the visibility provided by PacketShaper appliances, network managers can set and enforce corporate IT policies to optimize and accelerate business applications and block or limit non-business applications. Blue Coat offers unmatched visibility into the performance and security of applications running across the network, providing enterprises with the control they need to contain costs, enhance business productivity and quickly respond to changing business requirements.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Four Out of Five FORTUNE Global 500 Companies Rely on Blue Coat Products

Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today announced that 83 percent of FORTUNE Global 500 companies utilize Blue Coat Application Delivery Network products to optimize the delivery of business-enabling applications across the distributed enterprise. In the 2009 ranking by FORTUNE of the world’s largest companies, 97 of the top 100 companies are Blue Coat customers, including the world’s largest banks, pharmaceutical companies, telecommunications providers and petroleum refiners.

Blue Coat customers on the latest FORTUNE Global 500 list also include the following:

* Eighty-three percent of the Fortune Global 500
* Ninety-seven of the 100 largest companies in the world
* The 25 largest commercial banks
* The 20 largest telecommunications providers
* The 12 largest pharmaceutical companies
* Fifteen of the 16 largest electronics companies
* The nine largest mining companies
* The nine largest aerospace and defense companies
* The nine largest computer companies
* The nine largest metals companies
* The nine largest specialty retailers
* The six largest airlines
* The six largest food and drug stores
* The five largest consumer food companies
* The five largest insurance and managed care companies
* Eight of the nine largest chemical companies

The Blue Coat Application Delivery Network infrastructure combines application performance monitoring, WAN optimization and secure Web gateway technologies to contain costs, enhance business productivity and respond quickly to changing business requirements.

“The most demanding enterprises in the world rely on Blue Coat for the intelligence and control to optimize application performance and gain a competitive edge,” said Bethany Mayer, senior vice president of Worldwide Marketing and Corporate Development at Blue Coat Systems. “Blue Coat enables these distributed enterprises to fully leverage their networks to deliver business-critical applications.”

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com

Blue Coat Enhances Online Knowledge Management System to Provide Answers

BlueTouch Online’s Knowledge Management System Part of Ongoing Investments in BlueTouch Service and Support Program. Blue Coat Systems, Inc. , the technology leader in Application Delivery Networking, today launched an advanced knowledge management system designed to provide customers with fast and easy access to the information required to realize the full potential of the Blue Coat® product line. The knowledge management system enhances the BlueTouch™ Online portal and is part of ongoing investment by Blue Coat in its service and support capabilities to improve customer satisfaction.

“Over the last 12 months, Blue Coat has made significant investments in its service and support organization to provide its customers with the tools, knowledge and expertise they need to support strategic deployments,” said Grant Gordon, senior vice president, global service and support at Blue Coat Systems. “The knowledge management system is integral to this initiative and unifies the vast reserve of technical knowledge and expertise that Blue Coat maintains in multiple locations to better serve our customers’ service and support requirements.”

The knowledge management system is a collaborative environment that incorporates the shared knowledge and content created by Blue Coat support engineers, partners and customers with an advanced knowledgebase tool and automated content integration. As a part of the BlueTouch Online portal, the new knowledge management system provides a single customizable search tool across all technical documentation, support solutions, customer forums, alerts and other sources and enables customers to quickly find accurate and intuitive answers to their support questions.

For customers, the BlueTouch Online knowledge management system utilizes advanced search algorithms to find the most relevant content and answers to natural language questions. With the ability to search technical, solution and product content regardless of location or format, the BlueTouch Online knowledge management system provides customers with best practices answers from discussion forums, product documentation and technical briefs. To stay informed of the latest content added to the knowledge management system, customers can also subscribe to automated updates based on product, issue topic, deployment type or OS version.

An integrated authoring platform allows Blue Coat support engineers, product developers and technical services marketing to rapidly share new information with Blue Coat partners and customers while service partners can contribute solutions to share with customers. For new partner support engineers, the BlueTouch Online knowledge management system provides an easy way to leverage the collective intelligence of the Blue Coat Service and Support organization.

Blue Coat continues to invest in its service and support capabilities to provide customers with the high quality experience they demand from strategic suppliers. To serve its worldwide customer and partner base, Blue Coat utilizes a 24x7 follow-the-sun support model with six global customer support centers in Sunnyvale, Calif.; Waterloo, Canada; Farnborough, England; Dubai; Kuala Lumpur and Tokyo.

With a complement of support, professional and proactive services, as well as technical training and certification programs, BlueTouch Services enable customers to maximize the value of their Blue Coat deployments.

BlueTouch Online, the online portal component of the BlueTouch customer service and support program, allows customers to easily download the latest software and documentation, search security advisories, submit and track RMA and service requests, and license and activate products.

To Purchase Blue Coat Products visit http://www.edgeblue.com
To Purchase Blue Coat PacketShaper Products visit http://www.shaperworks.com