Exhibit 99.1

Final

For additional information, contact:

Denise Franklin	Mary McEvoy
SonicWALL, Inc. Investor Relations	SonicWALL, Inc. Media Relations
+ 1 (408) 752-7907	+1 (408) 962-7110
dfranklin@sonicwall.com	mmcevoy@sonicwall.com

SONICWALL REPORTS THIRD QUARTER FISCAL YEAR 2006 FINANCIAL RESULTS

Company marks records in total revenue, deferred revenue and units shipped; generates $12.4
million in cash flow from operations

Sunnyvale, Calif. — October 25, 2006 — SonicWALL, Inc. (Nasdaq: SNWL), today reported record performance in the quarter ended September 30, 2006, with revenue of $45.2 million and deferred revenue reaching $63.1 million. Revenue in the quarter increased 33% compared to revenue of $34.0 million in the third quarter of 2005 and increased 3% compared to $43.8 million in the third quarter of 2006. The company shipped 51,000 revenue units in the quarter. Cash flow from operations was $12.4 million.

Net loss for the third quarter of 2006 calculated in accordance with U.S. generally accepted accounting principles (GAAP), inclusive of stock-based compensation expense as required by Statement of Financial Accounting Standards No. 123R (FAS 123R), was $(2.2) million, or $(0.03) per share, as compared to GAAP net income for the third quarter of 2005 of $2.6 million, or $0.04 per diluted share. GAAP net income for the third quarter of 2005 did not include stock-based compensation expenses as now required by FAS 123R.

For purposes of comparison, net income excluding stock-based compensation for the third quarter of 2006 was $1.9 million or $0.03 per diluted share, compared to net income excluding stock-based compensation of $2.6 million or $0.04 per diluted share for the third quarter of 2005. The reconciliation between net income excluding stock-based compensation and GAAP net income is provided in a table following the unaudited financial statements attached to this press release.

Non-GAAP net earnings for the third quarter of 2006 were $4.3 million or $0.06 per diluted share as compared to non-GAAP net earnings for the third quarter of 2005 of $4.5 million or $0.07 per diluted share. Non-GAAP net earnings exclude amortization of purchased intangible assets and stock-based compensation expense primarily associated with the expensing of stock options in accordance with 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 reconciliation between GAAP and non-GAAP results is provided in a table following the unaudited financial statements attached to this press release.

“SonicWALL continued to make progress during the third quarter, and I am particularly pleased with our expense management, which enabled us to improve operating leverage,” said Matthew Medeiros, president and chief executive at SonicWALL. “We believe that we are very well positioned and continue to execute against a strategy based on three key initiatives — our focus on the small and medium-size business market, an integrated hardware and software subscription services business model, and an expanded product portfolio that is serving a broader set of customer needs.”

Guidance for Q4 2006
SonicWALL expects revenue to be in the range of $46.0 million to $47.0 million in the fourth quarter of 2006.

SonicWALL believes that revenue from products derived from recent acquisitions will be in the range of $4.5 million to $5.5 million in the fourth quarter. Sales of data backup and recovery solutions and email security solutions contributed approximately $9.5 million in revenue during the first nine months of Fiscal Year 2006.

SonicWALL expects total earnings per share to be in the range of $0.06 to $0.07 per diluted share on a non-GAAP basis. On a GAAP basis, inclusive of a total of approximately $6.2 million, net of taxes, in combined amortization of purchased intangibles and stock-based compensation expense in accordance with FAS 123R, the Company expects loss per share to be in the range of $(0.02) to $(0.01). Stock-based compensation expense primarily associated with the expensing of stock options in accordance with FAS 123R is estimated to be approximately $4.1 million or $(0.06) per share for the fourth quarter of 2006. .

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 third quarter 2006 results will take place today 5:30 a.m. PST (8:30 a.m. EST). 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/company/webcast.html. A replay of the call will be available beginning at approximately 6:30 a.m. PST (9:30 a.m. EST) today at the Company’s website or by telephone through November 1, 2006 at (800) 642-1687 (domestic) or (706) 645-9291 (international). The conference call ID number is #8141991.

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/.

Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, SonicWALL uses non-GAAP measures of results of operations. These non-GAAP results are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses. The non-GAAP measures are included to provide investors and management with an alternative method for assessing SonicWALL’s operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Cautionary Note Regarding Forward-looking Statements
Certain statements in this press release are “forward-looking statements.” The forward-looking statements include without limitation statements regarding our expected revenue for the fourth quarter of 2006 and the GAAP and non-GAAP earnings per share for the fourth quarter of 2006, projections regarding revenue from products derived from recent acquisitions, estimates of stock-based compensation expense for the fourth quarter 2006 associated with the expensing of stock options in accordance with FAS123R, and the key strategic initiatives designed to maintain ongoing momentum. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect SonicWALL’s actual results include, but are not limited to, increased competition in each of the geographic areas in which we do business; exchange rate fluctuations; global macroeconomic and geopolitical conditions; increased competition across all of the market segments in which SonicWALL participates; new product and service introductions by our competitors; significant turnover of our key employees; and unpredictability in the rate of growth of spending of our customers for products and services that SonicWALL provides. In addition, for a more detailed description of the risks and uncertainties that could cause our actual results to differ materially from those anticipated in the forward-looking statements, please see the “Risk Factors” described in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2005 and our quarterly reports on Form 10-Q for subsequent periods. All forward-looking statements included in this release are based upon information available to SonicWALL as of the date of the release, and we assume no obligation to update any such forward-looking statement.

NOTE: SonicWALL is a registered trademark of SonicWALL, Inc. Other product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

SonicWALL, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenue:
Product	$	24,087		$	18,236		$	67,880		$	55,875
License and service		21,103			15,782			60,947			43,034
Total revenue		45,190			34,018			128,827			98,909
Cost of revenue:
Product		10,210			6,994			28,677			20,310
License and service		3,228			1,956			9,030			5,877
Amortization of purchased technology		1,501			1,138			4,424			3,409
Total cost of revenue		14,939			10,088			42,131			29,596
Gross profit		30,251			23,930			86,696			69,313
Operating expenses:
Research and development		8,391			5,494			25,480			16,522
Sales and marketing		17,782			13,339			54,467			38,456
General and administrative		5,418			3,414			15,207			10,960
Amortization of purchased intangible assets		767			701			2,302			2,107
Restructuring charges		—			—			1,409			—
In-process research and development		—			—			1,580			—
Total operating expenses		32,358			22,948			100,445			68,045
(Loss) income from operations		(2,107	)		982			(13,749	)		1,268
Interest income and other expense, net		2,621			1,748			6,931			4,667
Income (loss) before income taxes		514			2,730			(6,818	)		5,935
Provision for income taxes		(2,756	)		(162	)		(4,377	)		(453	)
Net (loss) income	$	(2,242	)	$	2,568		$	(11,195	)	$	5,482
Net (loss) income per share:
Basic	$	(0.03	)	$	0.04		$	(0.17	)	$	0.08
Diluted	$	(0.03	)	$	0.04		$	(0.17	)	$	0.08
Shares used in computing (net loss) net income per share:
Basic		65,329			64,308			64,873			64,539
Diluted		65,329			66,183			64,873			66,431

SonicWALL, Inc.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding Amortization of Purchased Technology,
Amortization of Purchased Intangibles,
Restructuring Charges, Stock-Based Compensation,
and In-Process Research and Development
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenue:
Product	$	24,087		$	18,236		$	67,880		$	55,875
License and service		21,103			15,782			60,947			43,034
Total revenue		45,190			34,018			128,827			98,909
Cost of revenue:
Product		10,066			6,994			28,342			20,310
License and service		3,186			1,956			8,927			5,877
Total cost of revenue		13,252			8,950			37,269			26,187
Gross profit		31,938			25,068			91,558			72,722
Operating expenses:
Research and development		7,099			5,410			22,014			16,503
Sales and marketing		16,452			13,339			50,856			38,456
General and administrative		4,124			3,414			12,104			10,960
Total operating expenses		27,675			22,163			84,974			65,919
Income from operations		4,263			2,905			6,584			6,803
Interest income and other expense, net		2,621			1,748			6,931			4,667
Income before income taxes		6,884			4,653			13,515			11,470
Provision for income taxes		(2,547	)		(162	)		(5,001	)		(453	)
Non-GAAP net income	$	4,337		$	4,491		$	8,514		$	11,017
Non-GAAP net income per share:
Basic	$	0.07		$	0.07		$	0.13		$	0.17
Diluted	$	0.06		$	0.07		$	0.13		$	0.17
Shares used in computing net income per share:
Basic		65,329			64,308			64,873			64,539
Diluted		68,590			66,183			67,623			66,431

SonicWALL, Inc.
NET INCOME (LOSS), EXCLUDING STOCK-BASED COMPENSATION EXPENSE
(In thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Net loss (1)	$	(2,242	)	$	(581	)	$	(11,195	)	$	(7,417	)
Stock-based compensation expense, net of related tax effect (2)		4,102			3,149			10,618			12,899
Net income (loss), excluding stock-based compensation expense, net of tax	$	1,860		$	2,568		$	(577	)	$	5,482
Diluted net loss per share (1)	$	(0.03	)	$	(0.01	)	$	(0.17	)	$	(0.11	)
Diluted net income (loss) per share, excluding stock-based compensation expense	$	0.03		$	0.04		$	(0.01	)	$	0.08

(1)	Net loss and net loss per share prior to January 1, 2006 represents pro forma net loss calculated under SFAS 123.
(2)	Stock-based compensation expense prior to January 1, 2006 was calculated based on the pro forma application of SFAS 123.

In the quarter ended September 30, 2006, total stock-based compensation expense of $4,102 was allocated as follows: $186 to cost of revenue ($144 to product cost of revenue and $42 to license and service cost of revenue), $1,292 to research and development, $1,330 to sales and marketing and $1,294 to general and administrative.

In the nine months ended September 30, 2006, total stock-based compensation expense of $10,618 was allocated as follows: $438 to cost of revenue ($335 to product cost of revenue and $103 to license and service cost of revenue), $3,466 to research and development, $3,611 to sales and marketing and $3,103 to general and administrative.

SonicWALL, Inc.
RECONCILIATION of NON-GAAP to GAAP NET INCOME (LOSS)
(In thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Non-GAAP net income	$	4,337		$	4,491		$	8,514		$	11,017
Stock-based compensation expense		(4,102	)		(84	)		(10,618	)		(19	)
Amortization of purchased intangible assets		(2,268	)		(1,839	)		(6,726	)		(5,516	)
Restructuring charges		—			—			(1,409	)		—
In-process research and development		—			—			(1,580	)		—
Tax effect of adjustments		(209	)		—			624			—
Net effect of non-GAAP adjustments		(6,579	)		(1,923	)		(19,709	)		(5,535	)
Net (loss) income	$	(2,242	)	$	2,568		$	(11,195	)	$	5,482
Diluted Non-GAAP net income per share	$	0.06		$	0.07		$	0.13		$	0.17
Diluted net (loss) income per share	$	(0.03	)	$	0.04		$	(0.17	)	$	0.08

SonicWALL, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
	2006		2005
	(Unaudited)
	(In thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	34,128	$	42,593
Short-term investments		204,604		197,849
Accounts receivable, net		17,044		13,113
Inventories		5,597		3,707
Prepaid expenses and other current assets		12,541		7,331
Total current assets		273,914		264,593
Property and equipment, net		3,687		2,595
Goodwill, purchased intangibles and other assets, net		145,933		120,495
Total Assets	$	423,534	$	387,683
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	9,010	$	7,445
Accrued payroll and related benefits		11,547		9,054
Accrued restructuring		157		(7	)
Other accrued liabilities		12,092		6,284
Deferred revenue		58,855		44,642
Income taxes payable		3,408		95
Total current liabilities		95,069		67,513
Deferred revenue, non-current		4,231		—
Total liabilities		99,300		67,513
Stockholders’ Equity		324,234		320,170
Total Liabilities and Stockholders’ Equity	$	423,534	$	387,683

SonicWALL, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Cash flows from operating activities:
Net cash provided by operating activities	$	12,351		$	10,686		$	29,366		$	19,536
Cash flows from investing activities:
Purchase of property and equipment		(464	)		(346	)		(2,386	)		(665	)
Cash paid for acquisitions, net of cash acquired		6			—			(34,132	)		—
Maturity and sale of short-term investments, net of purchases		(38,255	)		4,086			(6,539	)		35,137
Net cash (used in) provided by investing activities		(38,713	)		3,740			(43,057	)		34,472
Cash flows from financing activities:
Issuance of common stock under employee stock options and purchase plans		8,760			2,054			14,343			3,701
Repurchase of common stock		—			—			(9,117	)		(30,218	)
Net cash provided by (used in) financing activities		8,760			2,054			5,226			(26,517	)
Net (decrease) increase in cash and cash equivalents		(17,602	)		16,480			(8,465	)		27,491
Cash and cash equivalents at beginning of period		51,730			34,457			42,593			23,446
Cash and cash equivalents at end of period	$	34,128		$	50,937		$	34,128		$	50,937