Blue Coat Systems Inc (BCSI) SEC Filing 10-Q Quarterly report for the period ending Monday, January 31, 2011

Exhibit 99.1

BLUE COAT REPORTS RESULTS FOR

THIRD QUARTER FISCAL 2011

Company Reports Record Operating Cash Flow

SUNNYVALE, Calif., February 17, 2011

“Our third quarter results were in line with my expectations,” said Michael Borman, president and chief executive officer, Blue Coat Systems. “In the quarter, we made progress on my key initiatives for the company, which included introducing exciting new products that serve and expand our addressable markets. Customers continue to reaffirm our strategy by adopting our unique visibility, acceleration and security solutions to optimize and secure their networks.”

On a GAAP basis, the Company reported net income of $12.1 million, or $0.25 per diluted share, for the third quarter of fiscal 2011, compared with net income of $12.0 million, or $0.25 per diluted share, in the second quarter of fiscal 2011.

The Company reported non-GAAP net income of $16.7 million, or $0.34 per diluted share, for the third quarter of fiscal 2011, compared with non-GAAP net income of $18.1 million, or $0.38 per diluted share, in the second quarter of fiscal 2011.

Cash flow provided by operations in the third quarter of fiscal 2011 was $59.2 million compared with $22.9 million in the second quarter of fiscal 2011. The Company ended the third quarter of fiscal 2011 with cash, cash equivalents, and restricted cash of $350.9 million.

“We generated record cash from operations and delivered solid bottom-line results, while investing in go-to-market initiatives to drive revenue growth,” said Gordon C. Brooks, senior vice president and chief financial officer Blue Coat Systems. “Looking ahead, we intend to continue to prudently invest in these initiatives.”

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