European customer demand for network security solutions delivered as an appliance continues to increase, and IDC recorded another period of strong growth for security appliances in Q3 2004. Around $155 mln in factory revenue was generated in the region from security appliance sales in Q3 2004 – an increase of 54% over Q3 2003. Growth from a unit shipment perspective was 79%, with almost 80,500 units shipped. Compared to Q2 2004, unit shipments were flat and factory revenue increased by around 6%.