Shamrock reports 10.41% ownership of Websense, urges stock repurchase program

By Jennifer Chiou

New York, Aug. 15 - Investors led by Shamrock Activist Value Fund, LP reported ownership of a 10.41% stake in Websense, Inc. and also urged the company's board to immediately implement a stock repurchase program, according to a schedule 13D/A filing with the Securities and Exchange Commission.

In a letter to Websense chairman John B. Carrington, Shamrock Capital Advisors, Inc.'s managing director, Dennis A. Johnson, wrote that Websense's board is urged to "immediately take action to maximize the value of the company."

Johnson went on to say that based on Shamrock's research and analysis, it believes "Websense's common stock is currently trading well below its intrinsic value, which we estimate is in excess of $28 per share.

"Assuming the company continues to operate in the ordinary course, we believe that Websense should generate at least $70 million in free cash flow this year and significantly more in the years to come," Johnson added.

Shamrock added that it believes the company has a large amount of available excess capital.

On March 6, the reporting persons reported ownership of a 9.73% stake with the purchase of 510,000 additional shares of the company's stock.

Shamrock beneficially owns 4,689,165 shares of the San Diego web filtering services company.

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