Websense (NASDAQ:WBSN) is set to report its earnings on Jan 27. Websense software and hosted security solutions help organizations block malicious code, prevent the loss of confidential information and enforce Internet use and security policies.

The company has recently announced some initiatives meant for its channel partners, which could increase their profitability, margins and Websense sales. The initiatives enable the partner to manages renewals online through a tracking system. Under the enhanced deal registration offering partners can earn higher margins on standard and non-standard new business deals. Lastly, the company website has been upgraded to help North American customers find a Websense authorized solution provider within their area through an interactive online map and search application platform.

In a cost cutting measure Websense, will cut 25 local staff as it moves its Sydney-based research and development lab to China. At the beginning of the year Denbighshire County Council announced that it has selected the Websense Web Security Gateway to provide complete web security protection. Catering for its 3,500 users, the solution will enable the council to deliver dynamic and adaptive protection against new threats and uncategorised content, while enforcing multiple policies for its corporate users and members of the public that use council IT services in schools and libraries. Another client addition comes with Addison Avenue Federal Credit Union, a full-service financial institution with more than 140,000 members nationwide. Recognizing the growing business value of Web 2.0 applications including blogs and social networking sites, Addison Avenue turned to Websense for an integrated solution for real-time Web 2.0 security and data loss prevention. They would noe deploy both Websense Web Security Gateway and Websense Data Security Suite as an integrated, easy-to-manage solution.

One incident which has marred the company was its recent split with its long-time customer Networks Unlimited, a value-added networking and security distributor operating in sub-Saharan Africa. Networks Unlimited has taken the unusual step of issuing a press release on the termination, openly criticising the actions of its former partner. The release read: “After nearly 12 years of successful partnership, it is regrettable that Websense chose to squander Networks Unlimited’s well-established end-user and reseller partner base and associated goodwill. Among other things, Websense tried to enforce a First World channel model onto Networks Unlimited’s territory, despite its recommendations to the contrary, and failed.” The release continued: “The performance of the product has therefore not met with either party’s expectations and Websense has elected to terminate the distribution agreement and to revert back to a single-tier distribution model. Networks Unlimited has a solid track record in this space having enjoyed 60% market share prior to the SurfControl acquisition and has many long-term relationships with both end-users and resellers alike - long may this continue.” Network Unlimited has pledged to support its reseller partners and clients that purchased Websense and SurfControl solutions until their support contracts are up for renewal. The VAD outfit is now focusing its efforts on promoting IronPort in the e-mail gateway security space.

Analyst expectations for the company stand at $0.19 for the quarter.

Earnings Estimates
Current Estimates: $0.19
Number of Estimates: 6
High Estimate: $0.22
Low Estimate: $0.18
Last Year EPS: $0.21
Percentage Growth: -9.00 %

Disclosure: The author does not own any of the stocks mentioned above.