Baltimore Technologies Reports Fourth Quarter Revenues and Preliminary Results for 2000; Revenue Increased by 42% Over Q3 and by 301% Over Q4 1999.Business & Technology Editors BOSTON--(BUSINESS WIRE)--Feb. 21, 2001 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. (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 ; 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 ), a global leader in e-security, today announced record fourth quarter and Preliminary results for the year ending December December: see month. 31, 2000. For the fourth quarter 2000, Baltimore Technologies posted total revenues of US$42.5 million (Stg(pound)28.4 million), a 42% increase over revenue of US$30 million (Stg(pound)20.1 million) for the previous quarter and a 301% increase over revenues of US$10.6 million (Stg(pound)7.1million) in the corresponding quarter 1999. 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. ended the year with another strong quarter in software license revenues, totaling US$25.1 million (Stg (pound)16.8 million) a 63% increase over the third quarter's license revenue of US$15.4 million (Stg(pound)10.3 million), and 305% growth compared to the same period last year. Gross margin increased to 72% in the fourth quarter, from 66% in the third quarter. 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. , Chief Executive Officer of Baltimore Technologies said, "Our record fourth quarter revenues clearly demonstrate our ability to grow in the traditional 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 market. Through acquisition we have expanded our product offering to include the additional high growth areas of content security and access control. As a result, we now have access to a market which is forecast to exceed US$6 billion by 2005 and, with our extensive customer base and partner network, we are well placed to take advantage of this opportunity." Total revenues for fiscal 2000 were US$110.9 million (Stg(pound)74.2 million) an increase of 219% from US$34.8 million (Stg(pound)23.3 million) in fiscal 1999. License revenues for the year grew 347% to US$60.2 million (Stg(pound)40.3 million) from US$13.4 million (Stg(pound)9 million) last year. Fourth quarter loss before interest, taxation, depreciation and amortization (LBIDTA) was US$13 million (Stg(pound)8.7 million). LBIDTA for 2000 was US$37.9 million (Stg(pound)25.4 million) in comparison to US$29.8 million (Stg(pound)20 million) in 1999. LBIDTA, as a percentage of revenue, has improved from 86% to 34%. The dollar increase in LBIDTA reflects the planned increase in sales and marketing activity, research and development and global expansion. "We are very pleased with the results for the year during which we successfully executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. our strategy to develop revenue and expand our geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge customer base. We enter 2001 in a strong position with an enhanced set of product and service offerings and a truly global reach. Along with other technology vendors, we are aware of a potential short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. impact of the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the US economy. However, we remain confident about our full year prospects and growth towards profitability," Rooney Rooney can refer to:
Significant Highlights in Q4 and 2000: -- In the fourth quarter, Baltimore completed the acquisitions of Content Technologies, the developers of the MIMEsweeper family of content security solutions and Nevex Software Technologies, developers of access control technology based in Canada. These acquisitions extended Baltimore's e-security product and service offerings to include high growth areas of content security and access and authorization management solutions. Nevex Software brought the technology that formed the basis for Baltimore SelectAccess, which was launched in the fourth quarter. -- During 2000, Baltimore completed five acquisitions. The acquisition of CyberTrust Solutions Inc. from GTE Corporation at the beginning of 2000 strengthened Baltimore's position in the US and brought security services and proven expertise in security hosting in the US and Japan, adding to Baltimore's existing facility in Sydney servicing the Asia/Pacific (APAC) market. Baltimore's investment in a 72.5% share of NSJ Corporation gave Baltimore a leading position in the Japanese e-security product and services market. Baltimore continues to expand in these markets with 22% and 31% of total revenues emanating from the US and APAC, respectively. -- Baltimore continued to see significant demand in the financial services sector with major financial institutions, including Citibank, VISA International and Chase Manhattan, selecting Baltimore e-security to take advantage of the power of the Internet. In the fourth quarter, Baltimore announced details on how Clearstream and First Data are using e-security to expand their service offerings. Baltimore further strengthened its relationship with Identrus during the period by becoming the first interoperability compliant Identrus Express partner. In addition, Baltimore was chosen by Identrus member banks, including ANZ Bank and Banco Santander Central Hispano (BSCH). -- In the Government and Healthcare arena, momentum for e-security continued to enable the provision of new e-business strategies. The Irish Revenue Commissioners, The Government of Valencia, The Ministry of Defence in the UK, The Australian Tax Office (ATO), The Federal Bridge Certification Authority, the US-based Massachusetts Health Data Consortium and Intel Internet Authentication Services all chose Baltimore to securely enable their new e-Government strategies or online health services. The emergence of legislation in the Healthcare sector, in particular HIPPA in the US, positions healthcare as a growth market for security in the future. -- Through innovation, acquisitions and partnerships, Baltimore extended the depth and breadth of its product and service offerings to include security services and hosting, access control and authorization management products with Baltimore SelectAccess and content security solutions through Baltimore MIMEsweeper. During 2000, Baltimore continued to expand its e-security portfolio for the Internet and wireless economy with the launch of Baltimore Telepathy wireless e-security solution, Baltimore KeyTools developer e-security products, Baltimore SureWare hardware cryptography devices and through updates to Baltimore UniCERT PKI system. Baltimore is now in a unique position to enable organizations, enterprises and Applications Service Providers (ASPs) to aggressively execute on their e-business strategies by controlling the Who (authentication and PKI), What (content security) and Where (access control and authorisation) of information security. -- Baltimore continues to experience strong growth in providing security for the e-Service Provider market that includes Application Service Providers (ASPs), Internet Service Providers (ISPs) and Managed Service Providers (MSPs). Over fifty world leading trust service providers are using Baltimore's products for their e-security foundation, including contracts with Cable & Wireless and Register.com, both of which were announced in the fourth quarter. To service this high growth market, Baltimore launched an ASP program during the quarter to enable e-service providers to offer a broad range of services, including secure hosting, VPNs, secure web access and content filtering. -- E-security is increasingly being recognized as an integral factor in any e-business strategy and during 2000 Baltimore saw its adoption by a broader range of sectors for a variety of applications. In the emerging TV and devices sector, Open Interactive, the digital TV service of British Sky Broadcasting, deployed Baltimore's products to enable secure content delivery. During the quarter, Baltimore's e-security products were also chosen by companies such as Mindport Sentriq to allow network operators and content providers to offer services such as e-music and Video-on-Demand securely online. In the period, Baltimore saw further traction in the wireless and mobile commerce market entering agreements with Motorola and OpenWave, formerly Phone.Com, to provide mobile root digital certificates for embedding in wireless handsets and gateways. -- Baltimore ended the year with a strong global presence consisting of 1,185 employees in 38 cities and over 500 partners, including Hewlett-Packard, Compaq, Accenture, EDS, Syntegra, Cisco and Checkpoint, strengthening the Company's ability to address new markets and uniquely provide both worldwide and local customer service and support. (Pound) translated at rate of(pound)1=$1.4938 for the convenience of the reader. About Baltimore Technologies Baltimore Technologies develops and markets security products and services to enable companies to develop trusted, secure systems for e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. , the 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 and mobile commerce. Its products include a wide range of Public Key Infrastructure (PKI) products and services, access control and authorization The right or permission to use a system resource; the process of granting access. See access control. products, wireless e-security solutions, cryptographic cryp·tog·ra·phy n. 1. The process or skill of communicating in or deciphering secret writings or ciphers. 2. Secret writing. cryp toolkits, content security products (MIMEsweeper) 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 Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. support to its customers worldwide. Baltimore markets and sells its solutions worldwide directly and through the TrustedWorld(TM) partner program. TrustedWorld brings together the world's top global integrators, service providers, technology vendors and channel partners in the industry's leading alliance of e-security specialists. Baltimore Technologies employs approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1,200 people worldwide and operates from 38 cities, with headquarters in Dublin Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. ; London, UK; Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , USA and Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Baltimore Technologies plc is a public company with dual listings on NASDAQ (BALT) and 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. (BLM). For further information and press releases on Baltimore Technologies, please visit www.baltimore.com. Certain statements that are not historical facts including certain statements made over the course of this document may be forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements.
GROUP FINANCIAL HIGHLIGHTS
Year ended Year ended Percentage
31 December 31 December Change
2000 1999
$m(a) (pound)m (pound)m %
Revenue 110.9 74.2 23.3 219%
Software revenue
Included above 60.2 40.3 9.0 347%
Gross profit 75.3 50.4 15.1 234%
Gross profit % 68% 68% 65% 5%
Loss before interest, tax,
depreciation and
amortisation of goodwill
and intangibles (LBITDA) (37.9) (25.4) (19.9) (28%)
Operating loss (150.9) (101.0) (33.3) (201%)
Amortisation of goodwill
and intangibles included
above 107.3 71.8 11.9 496%
Loss before taxation (140.7) (94.2) (31.4) (199%)
Shareholders' funds 1,102.7 738.2 147.9 399%
Loss per share - Basic
(cents/pence) (34.5) (23.1) (10.27) (125%)
Employees at end of year 1,185 1,185 480 247%
Cash balance at end of year 161.0 107.8 102 6%
(a) Translated at the rate of (pound)1 = $1.4938
Consolidated Profit and Loss Accounts
US Dollars(a)
Year to Year to 8 months to Year to
31 December 31 December 31 December 30 April
2000 1999 1998 1998
(a)$000 (a)$000 (a)$000 (a)$000
Revenue
Existing operations 79,696 34,764 14,765 19,684
Acquisitions 31,180 - - -
-------- -------- ------- -------
Revenue from continuing
operations 110,876 34,764 14,765 19,684
Cost of sales (35,515) (12,242) (7,199) (9,091)
-------- -------- ------- -------
Gross profit 75,361 22,522 7,566 10,593
Administrative expenses (226,206) (72,210) (15,598) (9,817)
-------- -------- ------- -------
Operating (loss)/profit
Existing operations (37,506) (49,688) (8,032) 776
Acquisitions (113,339) - - -
-------- -------- ------- -------
Operating (loss)/profit
from continuing
operations (150,845) (49,688) (8,032) 776
Share of operating loss of
associated undertaking (433) - (396) (31)
Interest receivable and
similar income 11,198 3,270 780 13
Interest payable and
similar charges (612) (414) (79) (315)
-------- -------- ------- -------
(Loss)/profit on ordinary
activities before
taxation (140,692) (46,832) (7,727) 443
Tax on (loss)/profit on
ordinary activities (1,365) 566 70 (329)
-------- -------- ------- -------
(Loss)/profit after
taxation (142,057) (46,266) (7,657) 114
Minority interest 3,869 - - -
-------- -------- ------- -------
(Loss)/profit for the
financial period (138,188) (46,266) (7,657) 114
Finance cost of non-equity
shares - - (3,029) (175)
Non-equity share
entitlements waived - - 4,199 -
-------- -------- ------- -------
(Loss)/profit for the
period retained for equity
shareholders (138,188) (46,266) (6,487) (61)
-------- -------- ------- -------
(Loss)/profit per share Cents Cents Cents Cents
Basic and diluted (34.5) (15.34) (4.15) (0.07)
======== ======== ======= =======
All activities relate to continuing operations for all periods
(a) Translated at the rate of (pound)1 = $1.4938
Consolidated Balance Sheets
US Dollars(a)
31 December 31 December 31 December
2000 1999 1998
(a)$000 (a)$000 (a)$000
Fixed assets
Intangible assets 932,751 68,645 8,769
Tangible assets 27,946 9,725 6,166
Investments 1,906 1,492 1,492
------- ------- -------
962,603 79,862 16,427
Current assets
Stocks 692 1,300 1,159
Debtors 99,702 15,613 6,659
Cash at bank and in hand 161,029 152,774 21,735
------- ------- -------
261,423 169,687 29,553
Creditors: amounts falling due
within one year (94,913) (20,038) (6,960)
------- ------- -------
Net current assets 166,510 149,649 22,593
------- ------- -------
Total assets less current
liabilities 1,129,113 229,511 39,020
Creditors (including convertible
debt): amounts falling due after
more than one year (4,137) (8,631) (1,503)
Minority interest (22,202) - -
------- ------- -------
Net assets 1,102,774 220,880 37,517
========= ======= =======
Capital and reserves
Called up share capital 763 563 272
Shares to be issued 19,364 - 396
Share premium account 544,173 201,378 37,309
Merger reserve 908,437 73,955 8,369
Warrant reserve 34,168 - -
Profit and loss account (404,131) (55,016) (8,829)
------- ------- -------
Shareholders' funds - equity and
non-equity 1,102,774 220,880 37,517
========= ======= =======
(a) Translated at the rate of (pound)1 = $1.4938
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