Baltimore Technologies Reports First Quarter Results; Total Revenue up 100% Year on Year; Software License Revenue Increases by Over 825%.Business Editors LONDON--(BUSINESS WIRE)--May 9, 2000 Baltimore Technologies Baltimore Technologies was an internet security firm founded in 1976 by Michael Purser. It was acquired in 1996 by a team financed by Dermot Desmond and led by Fran Rooney, who became CEO. (London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. :BLM BLM n abbr (US) (= Bureau of Land Management) → les domaines ; NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BALT BALT bronchus-associated lymphoid tissue. BALT Bronchiole-associated lymphoid tissue, see MALT ), a global leader in e-security solutions, today announced record first quarter results for the period ending March 31, 2000. Revenues for the first quarter were Stg(pound)9.5 million (US$15 million), a 100% increase over revenue of Stg(pound)4.7 million (US$7.5 million) for the same period last year. Software license revenues for the first quarter were Stg(pound)5.2 million (US$8.2 million), an increase of over 800% compared to the corresponding quarter last year. This continued growth in software license revenue, which now represents 55% of total revenue, demonstrates the increasing demand for Baltimore's security software products and solutions worldwide. The loss before interest, taxes, depreciation and amortization (LBITDA) for the quarter was (pound)5.3 million (US$8.5 million).(a) "We are extremely pleased with the Q1 results which demonstrate record revenue growth especially in software licensing. These powerful results, combined with the successful integration of our acquisitions in the USA and Japan, demonstrate Baltimore's increasing strength in the e-security marketplace," said Fran Rooney Fran Rooney (born 1956 in Dublin, Ireland) is one of Ireland's best known businessmen. Fran Rooney grew up in Ringsend and started his career in the Irish Government sector with various roles in the Postal, Telecoms and Civil Aviation sectors. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Baltimore Technologies. "We continue to develop our innovative technology, sales, marketing and partnering strategies to drive this growth." The acquisition of CyberTrust Cybertrust is a security-services firm based in Virginia that was formed in November of 2004 as a result of a merger of the TruSecure and Betrusted security companies. Cybertrust has also acquired a large stake in Ubizen, a European security services firm based in Belgium. Solutions Inc was completed on 28th March and the acquisition of a 72.5% stake in NSJ NSJ Non Solo Jumpers Corporation was completed on 17th March 2000. Results for the first quarter include consolidated revenues of Stg(pound)0.4 million (US$0.7 million) and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of Stg(pound)0.9 million (US$1.4 million) from acquired companies. Highlights: Revenue Growth - Increased customer demand worldwide Baltimore Technologies closed Q1 with an increase in software revenues reflecting the strong demand for its e-security products and services worldwide. During the quarter, Baltimore's award winning technology was licensed to customers worldwide covering a range of sectors such as government, healthcare, and banking. Baltimore's investment and focus on America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. was reflected in the growth in revenue for the region of more than 180% over Q4 1999. America's revenues now represent 18% of total revenue and Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. expects to enhance its position in the US market with the addition of CyberTrust and its strong sales pipeline. Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) represents 52%, with Asia Pacific (APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) ) at 30% of total revenues. Financial Institutions and banks worldwide continue to adopt Baltimore's e-security products and services to offer their customers an efficient, cost effective, secure channel for conducting everyday banking transactions including payments and funds transfers and to enable the confidential, authenticated au·then·ti·cate tr.v. au·then·ti·cat·ed, au·then·ti·cat·ing, au·then·ti·cates To establish the authenticity of; prove genuine: a specialist who authenticated the antique samovar. exchange of sensitive data over internal networks. In the US, Baltimore announced its contract with Imperial Bank, a leading business bank headquartered in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , who is using Baltimore UniCERT to enable the provision of secure online cash management transactions. Identrus, the leading e-business trust infrastructure for financial institutions, has licensed Baltimore UniCERT for the root certificate authority of its global business-to-business network. This win places Baltimore Technologies in a leading position to provide further PKI (Public Key Infrastructure) A framework for creating a secure method for exchanging information based on public key cryptography. The foundation of a PKI is the certificate authority (CA), which issues digital certificates that authenticate the identity of systems to financial institutions who are members of the Identrus network. Baltimore's e-security solutions are increasingly being adopted by Government and Healthcare departments worldwide, to create new business opportunities and improve communication processes. The Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. Health Insurance Commission (HIC) and the US Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Health Data Consortium selected Baltimore UniCERT Options and e-security
technology to securely exchange data electronically and to provide new
on-line services.Baltimore also announced that the US Government had selected their technology for half of the U.S. Government's prototype Federal Bridge Certificate Authority (FBCA FBCA Federal Bridge Certification Authority FBCA Federation of British Cremation Authorities (UK) FBCA Florida Business Corporation Act FBCA First Baptist Church Arlington (Texas) ). The FBCA is an initiative that will enable Federal agencies to connect through a national PKI, building a trust infrastructure for secure electronic business. In the eService Provider market which includes Commercial Certificate Authority (CCA (1) (Common Cryptographic Architecture) Cryptography software from IBM for MVS and DOS applications. (2) (Compatible Communications A ) business, demand continued with several contract wins including Chubb Information Security, PricewaterhouseCoopers and Guernsey Telecoms Guernsey Telecom was the name of the telephone service provider owned by the States of Guernsey, the government of Guernsey, Channel Islands. On 30 May 2002, it was sold to Cable and Wireless in a deal worth £30 million. . PricewaterhouseCoopers licensed Baltimore UniCERT and PKI products to establish beTRUSTed, a new global Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the trust service for business-to-business e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. . Strategic Growth Acquisitions In the first quarter 2000 Baltimore completed the acquisition of both CyberTrust Solutions Inc in the US and NSJ Corporation in Japan. Acquisition of CyberTrust In January, Baltimore Technologies announced the acquisition of CyberTrust Solutions Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Corporation. This deal was finalized See finalization. in March, funded through the issuance of Baltimore Technologies stock. As a result of the CyberTrust acquisition, Baltimore Technologies now employs over 200 people in the USA. Acquisition of majority stake in Network Solutions Japan KK In March, Baltimore Technologies acquired a 72.5% stake in its Japanese reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. NSJ Corporation (now renamed as Baltimore Technologies Japan KK.). Since the end of Q1, Baltimore Technologies Japan has received additional investment of approximately US$18 million for a 7% stake. Baltimore Japan now employs 50 people. Global Partner Network Baltimore Technologies continued to extend its global reach with the appointment of 34 new partners to the Baltimore TrustedWorld Program in Q1, including 22 partners in the Baltimore Telepathy telepathy, supposed communication between two persons without recourse to the senses. The word was formulated in 1882 by Frederic William Henry Myers, English poet, essayist, and a leading founder of the Society for Psychical Research in London. partner program. In January, Baltimore formed a strategic OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and agreement with Hewlett Packard to sell Baltimore Technologies' products, including its award-winning UniCERT system, through the HP global sales network. The company has also announced global alliances with Unisys and Compaq expanding Baltimore's access to new regional and industry sectors. Innovation & Technology Baltimore Telepathy In January 2000, Baltimore launched Telepathy, the first, complete wireless e-security solution for mobile commerce. This initiative is targeted at e-commerce companies, network operators and software developers who need to deploy secure mobile commerce applications and systems. To promote this new offering Baltimore held a series of 17 mobile commerce and WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. security seminars worldwide attracting over 2,200 registered delegates. UniCERT Options In April 2000, Baltimore launched its new PKI initiative, UniCERT Options, which builds on the award winning PKI products and services from Baltimore and the world-class hosting services from CyberTrust. UniCERT Options is the first and only PKI offering that allows businesses to choose products and services to match their e-security and e-business needs. Baltimore SureWare Since the period end, Baltimore has launched its range of e-security hardware to provide enhanced cryptographic cryp·tog·ra·phy n. 1. The process or skill of communicating in or deciphering secret writings or ciphers. 2. Secret writing. cryp security and performance for Web servers, Certificate Authorities and Virtual Private Networks. The new hardware security range, Baltimore SureWare, builds on the company's experience in supplying banks and governments with strong security by combining proven software-based security components with a fast, secure, hardware platform. Awards Baltimore's technology excellence was further recognized through industry awards: -- Network Magazine, one of the leading US IT publications, named UniCERT "PKI Systems Product of the Year" -- Telepathy WAP Security Toolkit (WST WST In currencies, this is the abbreviation for the Samoan Tala. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) was voted as "Best Internet Product" by the readers of InfoSecurity magazine. -- Baltimore Technologies received Market Engineering Customer Focus Award from Frost and Sullivan analyst group, for its contribution to the US security applications market. Stock Split The stock split, previously authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the board of Baltimore Technologies, is expected to be approved by shareholders at today's Annual General Meeting and is expected to take effect on May 12th 2000. Ordinary shares will be split in the ratio of 10:1. On NASDAQ, the American Depository Receipt American Depository Receipt n. called in the banking trade an ADR, it is a receipt issued by American banks to Americans as a substitute for actual ownership of shares of foreign stocks. (ADR ADR - Astra Digital Radio ) ratio will be changed from one share per ADR to two shares per ADR. This will result in an effective stock split of 10 to 1 on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and 5 to 1 on NASDAQ. "The first quarter has been an exceptional period in terms of product, sales and strategic development. We believe we are well positioned to continue this momentum as we move towards our goal of becoming the global leader in e-security," commented Fran Rooney, CEO of Baltimore Technologies. (a) The reported LBITDA figure includes a charge of Stg(pound)1.5 million (US$2.4 million) in respect of share options issued at a discount price and the provision for national insurance charges for share options granted to UK employees. This is a result of current UK regulations. About Baltimore Technologies Baltimore Technologies develops and markets security products and services to enable companies to develop trusted, secure systems for e-business, the Internet and mobile commerce. Its products include a wide range of Public Key Infrastructure ( PKI ) products and services, wireless e-security solutions, cryptographic tool-kits, security applications and hardware cryptographic devices. Baltimore's global professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. organization offers a wide variety of consulting, training and deployment support to its customers worldwide. Baltimore Technologies markets and sells its solutions worldwide directly and through the TrustedWorld(TM) channel program. TrustedWorld includes many of the world's leading technology companies and a wide variety of global, regional and local business alliance partners. Baltimore Technologies employs over 700 people worldwide and operates from over 20 cities with headquarters in Dublin, Ireland; London, UK; Boston, USA and Sydney, Australia. Baltimore Technologies plc is a public company with dual listings on NASDAQ (BALT) and the London Stock Exchange (BLM). Intel Corporation (company) Intel Corporation - A US microelectronics manufacturer. They produced the Intel 4004, Intel 8080, Intel 8086, Intel 80186, Intel 80286, Intel 80386, Intel 486 and Pentium microprocessor families as well as many other integrated circuits and personal computer networking is a minority shareholder in the Company. For further information and press releases on Baltimore Technologies, please visit http://www.baltimore.com Baltimore Technologies, e-security, Telepathy, TrustedWorld, PKIWorld and Baltimore product names including UniCERT, UniCERT Options, MailSecure, PKI-Plus and J/CRYPTO are all trademarks of Baltimore Technologies plc. All other trademarks are the property of their respective owners. Certain statements that are not historical facts including certain statements made over the course of this document may be forward-looking in nature. Such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements implied by such forward-looking statements.
Baltimore Technologies plc
Summary of Financial Statements
Unaudited interim condensed consolidated profit and loss accounts
3 months to 3 months to
31 March 31 March
2000 1999
(pound)000 (pound)000
----------- ----------
Revenue
Existing operations 9,009 4,744
Acquisitions 441 -
------ ------
Revenue from continuing operations 9,450 4,744
Cost of sales (3,093) (2,138)
------ ------
Gross profit 6,357 2,606
Administrative expenses (15,605) (9,727)
------ ------
Operating loss
Existing operations (8,554) (7,121)
Acquisitions (694) -
------ ------
Operating loss from
continuing operations (9,248) (7,121)
Interest receivable and similar income 2,089 198
Interest payable and similar charges (87) (31)
------ ------
Loss on ordinary activities
before taxation (7,246) (6,954)
Tax on loss on ordinary activities (259) -
------ ------
Loss for the financial period (7,505) (6,954)
Minority interest 17 -
------ ------
Loss for the period retained
for equity shareholders (7,488) (6,954)
------ ------
Loss per share Pence Pence
Basic and diluted (20.1) (26.5)
------ ------
All activities relate to continuing operations.
Unaudited interim condensed consolidated profit and loss accounts
3 months to 3 months to
31 March 31 March
2000 1999
$000 $000
----------- ----------
Revenue
Existing operations 14,372 7,568
Acquisitions 704 -
------ ------
Revenue from continuing operations 15,076 7,568
Cost of sales (4,934) (3,411)
------ ------
Gross profit 10,142 4,157
Administrative expenses (24,895) (15,517)
------ ------
Operating loss
Existing operations (13,646) (11,360)
Acquisitions (1,107) -
------ ------
Operating loss from
continuing operations (14,753) (11,360)
Interest receivable and similar income 3,333 316
Interest payable and similar charges (139) (49)
------ ------
Loss on ordinary activities
before taxation (11,559) (11,093)
Tax on loss on ordinary activities (413) -
------ ------
Loss for the financial period (11,972) (11,093)
Minority interest 27 -
------ ------
Loss for the period retained
for equity shareholders (11,945) (11,093)
------ ------
Loss per share Cents Cents
Basic and diluted (32.1) (42.2)
------ ------
All activities relate to continuing operations.
Translated for convenience of the reader at the rate
of(pound)1 = $1.5953
Unaudited Interim Condensed Consolidated balance sheets
31 March 31 December
2000 1999
(pound)000 (pound)000
----------- ----------
Fixed assets
Intangible assets 137,604 45,953
Tangible assets 9,370 6,510
Investments 4,684 999
------ ------
151,658 53,462
Current assets
Stocks 697 870
Debtors 19,072 10,452
Cash at bank and in hand 96,750 102,272
------ ------
116,519 113,594
Creditors: amounts falling due
within one year (21,820) (13,414)
------ ------
Net current assets 94,699 100,180
------ ------
Total assets less
current liabilities 246,357 153,642
Creditors (including convertible
debt): amounts falling due after
more than one year (6,085) (5,778)
Minority Interest (4,852) -
------ ------
Net assets 235,420 147,864
------ ------
Capital and reserves
Called up share capital 402 377
Share premium 291,205 134,809
Merger reserve 144,602 49,508
Profit and loss account (200,789) (36,830)
------ ------
Shareholders' funds - equity 235,420 147,864
------ ------
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