SonicWALL Reports First Quarter 2008 Financial Results

Company Reports Year-over-Year Revenue Growth of 23%

SUNNYVALE, Calif.,May 01,2008"(PressReleasePoint)"--SonicWALL, Inc. (NASDAQ: SNWL), today reported performance in the quarter ended March 31, 2008, with revenue of $55.3 million, representing 23% growth over the first quarter of 2007. The Company shipped 49,000 revenue units in the quarter compared to 48,000 in the first quarter of 2007. Deferred revenue increased $4.7 million in the first quarter, and cash flow from operations was $2.9 million.

Net loss for the first quarter of 2008 calculated in accordance with U.S. generally-accepted accounting principles (GAAP) was $0.07 million, or $0.00 per diluted share. In comparison, GAAP net earnings for the first quarter of 2007 were $2.3 million, or $0.03 per diluted share.

Non-GAAP net earnings for the first quarter of 2008 were $3.2 million or $0.05 per diluted share. In comparison, non-GAAP net earnings for the first quarter of 2007 were $5.0 million, or $0.07 per diluted share. Non-GAAP net income excludes amortization of purchased intangible assets, restructuring charges, and share-based compensation expense primarily associated with the expensing of stock options in accordance with Financial Accounting Standards No. 123R (FAS 123R). An explanation of our use of non-GAAP measures is included in the section in this press release entitled "Use of Non-GAAP Financial Measures."

"The first quarter represented a good start to 2008 for SonicWALL," said Matt Medeiros, CEO of SonicWALL. "Our strategy of developing a complete line of innovative and affordable solutions for our partners and customers has expanded our market opportunity and positioned us well to exceed market growth rates in a challenging economic environment."

Continued Share Repurchase

During the first quarter SonicWALL spent $32.5 million to repurchase 3.8 million shares of its common stock on the open market, bringing the total number of shares repurchased to 20 million for a total cost of approximately $153 million. There is $47 million remaining under the total current share repurchase authorization of $200 million.

Guidance for Q2 2008

SonicWALL expects second quarter 2008 revenue to be in the range of $53.5 million to $57.5 million. The Company expects non-GAAP gross margin to be in the range of 70.5% to 71.5% of revenue.

SonicWALL expects earnings per share in the second quarter of 2008 to be in the range of $0.04 to $0.07 per diluted share on a non-GAAP basis. On a GAAP basis, inclusive of a total of approximately $4.0 million, before taxes, in combined amortization of purchased intangibles assets and share-based compensation expense, the Company expects earnings per share to be in the range of $0.00 - $0.02. Share-based compensation expense associated with the expensing of stock options is estimated to be approximately $3.0 million for the second quarter of 2008.

This is the only statement SonicWALL will be giving during the quarter with respect to guidance, unless a decision is made to provide an update.

Conference Call

A conference call to discuss first quarter 2008 results will take place today, April 29, 2008, at 2:00 p.m. PT (5:00 p.m. ET). SonicWALL President and CEO Matt Medeiros and SonicWALL CFO Rob Selvi will host the call. A web cast of the live call can be accessed at http://www.sonicwall.com/us/company/2518.html. A replay of the call will be available beginning at approximately 5:00 p.m. PT (8:00 p.m. ET) today at the Company's website or by telephone until 5:00 p.m. PT on May 4, at (888) 203-1112 (domestic) or (719) 457-0820 (international). Conference ID number is 7722014.

About SonicWALL, Inc.

Founded in 1991, SonicWALL, Inc. designs, develops and manufactures comprehensive network security, email security, secure remote access, and continuous data protection solutions. For more information, contact SonicWALL at +1 (408) 745-9600 or visit the company web site at http://www.sonicwall.com/.