Baltimore Technologies reports Record Second Quarter and Half Year Revenues.Business Editors and Technology Writers LONDON--(BUSINESS WIRE)--Aug. 2, 2000 Increased worldwide demand for 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. e-security products drives 402% growth in license revenue over Q2 1999. 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. plc (Nasdaq: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 solutions, today announced its second quarter and half year results for the period ending 30 June June: see month. , 2000. Total revenue for the second quarter was Stg(pound)16.3 million (US$24.6 million), a 221% increase over revenue of Stg(pound)5.1 million (US$7.7 million) for the same period last year and a 72% increase over Q1 2000. For the six months to 30 June 2000, Baltimore Technologies showed outstanding revenue growth of 162% on the same period last year, posting revenues of Stg(pound)25.7 million (US$38.9 million). Commenting on the results, 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: "This has been an excellent quarter for Baltimore with record revenue growth across all regions. The 402% increase in license revenue over Q2 1999 demonstrates our continuing success in winning new customers and partners in target vertical and geographic sectors. Over 60% of our revenues were generated outside Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and with 26% of revenues emanating from the US, Baltimore is
delivering on our investments in these key regions."The continued growth in software license revenue, which represented 50% of total revenue for the quarter, demonstrates the increasing demand for Baltimore's e-security products and solutions worldwide. Software license revenues for the second quarter were Stg(pound)8.0 million (US$12.2 million) showing continued growth of 402% over the corresponding quarter last year and 56% over quarter one. License revenue for the half year increased by over 500% compared to the same period last year amounting to Stg(pound)13.2 million (US$20.0 million). This license growth rate is significantly ahead of market growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. of between 60% and 70% per annum Per annum Yearly. . In line with Baltimore's cost control measures, losses before interest, tax, depreciation and amortization ("LBITDA") of Stg(pound)4.4 million (US$6.7 million) have reduced by 22% compared to Stg(pound)5.6million (US$8.5 million) in Q2 1999 and quarter on quarter LBITDA has improved by 16% compared to Stg(pound)5.3million (US$8.0 million) in Q1 2000. 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. in Q2 of Stg(pound)26.7 million (US$40.4 million) have increased from Stg(pound)12.1 million (US$18.3 million) in Q2 1999 and reflect both our continued investment in our infrastructure for future growth and the increased charge for the amortization of goodwill on acquisitions. There was a charge of Stg(pound)7.9 million/ US$12.0 million in respect of goodwill arising on the acquisitions of both 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. and NSJ NSJ Non Solo Jumpers . The geographic mix of revenue has improved with over 60% of our revenue generated from outside of Europe compared to 12% in the same quarter last year. The US and 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) accounted for 26% and 34% respectively of total revenue. Commenting further on the results Fran Rooney said: " A key factor in Baltimore's market success is our ability to deliver growth and manage change. Our focus on solving customer problems has been a key competitive differentiator for Baltimore Technologies ensuring our continuing expansion. We have delivered two strong quarters in 2000 and I am confident that our structure and focus will ensure Baltimore fully exploits the existing and emerging opportunities for international leadership in the high growth e-security sector." Q2 Highlights: Broadening Blue-Chip blue chip also blue-chip·per n. 1. A stock that sells at a high price because of public confidence in its long record of steady earnings. 2. An extremely valuable asset or property. 3. Customer Base During the period, demand for Baltimore's e-security products, services and solutions continued, with increased license revenues across a range of sectors including government, healthcare, and banking. Commerce One has selected Baltimore Technologies to secure transactions on its leading web network of online marketplaces. Commerce One plans to integrate Baltimore UniCERT The UNIcert is an international system of certification and accreditation for various languages learnt in a university context. The main goal of UNIcert is to support language education for universities and to provide an accepted certificate that proves language knowledge outside into its MarketSite Portal Solution used by customers worldwide. By using Baltimore's e-security technology, Commerce One customers can now ensure complete confidentiality, authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. and data integrity between e-marketplace An eMarketplace, or electronic marketplace, is a community of buyers and suppliers. More specifically, it’s an electronic community that integrates the procurement systems of buyers with the fulfillment systems of suppliers, creating a single standard process for transacting buyers and sellers. Baltimore continued to prove its leadership and strong market share in the rapidly expanding e-security market for financial institutions. In Q2 alone, Baltimore announced key relationships with Banco Santander Santander, city (1990 pop. 194,221), capital of Cantabria prov., N Spain, in Cantabria, on the Bay of Biscay. It is a seaport, fishing center, and a popular resort. On the nearby peninsula of Magdalena is a former royal summer palace. , Certall and Visa to enable the provision of an efficient, cost effective, secure channel for conducting everyday financial transactions including payments and funds transfers. Banco Santander is also a member of the Identrus system, which demonstrates once again Baltimore's ability to provide 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 that are members of this global initiative. In the Government and Healthcare markets, demand accelerated in the last two quarters as more and more institutions realized the importance of e-security to create and improve channels for business delivery and communication. During Q2, Baltimore announced wins with a number of new healthcare and government customers worldwide including, Intel Internet Authentication Service Internet Authentication Service (IAS) provides centralized user authentication and authorization, auditing and accounting. It is included with the server editions of modern versions of Microsoft Windows operating systems. (IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. ), 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), the US Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. Health Data Consortium, and the Irish
Revenue Commissioners. Their choice of Baltimore was based on its award
winning technology, ability to deliver and commitment to customer needs
and service.In the eService Provider business, which includes Commercial Certificate Authority (CCA (1) (Common Cryptographic Architecture) Cryptography software from IBM for MVS and DOS applications. (2) (Compatible Communications A ) business, momentum continued to build during the quarter, with several contract wins. These included a strategic relationship with PricewaterhouseCoopers who 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  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. 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. . Using Baltimore's e-security technology, WISeKey is building a trusted infrastructure for e-commerce and secure transaction activities. This initiative is being taken in conjunction with the International Telecommunication Union International Telecommunication Union (ITU), specialized agency of the United Nations, with headquarters at Geneva. It was created in 1934 as a result of the merging of the International Telegraph Union (est. (ITU (International Telecommunication Union, Geneva, Switzerland, www.itu.ch) A telecommunications standards body that is under the auspices of the United Nations. Comprising more than 185 member countries, the ITU sets standards for global telecom networks. ). Growing Partner Network During the quarter, Baltimore made several enhancements to its TrustedWorld partner program to improve channels to the widening e-security market. The Baltimore TrustedWorld program offers a variety of partner frameworks for resellers, service providers and other affiliates. The program now has almost 248 partners including Andersen Consulting See Accenture. , Compaq (Compaq Computer Corporation, Houston, TX, www.compaq.com) Compaq was the leading PC manufacturer when it was acquired by HP in 2002. Founded in 1982 by Rod Canion, Jim Harris and Bill Murto, one year later the company shipped 53,000 PC-compatible COMPAQ Portables, resulting in $111 , EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , Hewlett Hewlett may refer to: People with the surname Hewlett:
M&A Activity The combination of dynamic organic growth and targeted acquisitions has yielded significant success and continued growth for Baltimore. The acquisition of CyberTrust Solutions Inc. in quarter one has strengthened Baltimore's presence in the US and enhanced its e-security offering for customers worldwide. Since the acquisition, Baltimore has grown its America See ITS. operation to meet customer demands and now employs over 200 people in the USA. Since the acquisition of 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, Baltimore Technologies has continued to grow its operation in Japan. Since the end of the quarter we further enhanced our presence with the acquisition of CyberTrust Japan. The combined entity is known as Baltimore Technologies Japan Co Ltd., employing over 90 staff in Japan. During the period Baltimore Technologies Japan received additional investment of approximately US$18 million for a 7% stake. The new strategic investors in Baltimore Japan include Softbank Networks Inc., Softbank Investment Corp, CTC CTC - Cornell Theory Center , MKC-STAT Corporation, Tokyo Electric Power Company and others. Baltimore Technologies Japan also extended its channel network in Japan with the appointment new business partners:- ITOCHU TECHNO-SCIENCE Corporation, Hitachi Ltd., MKC-STAT Co., Ltd., MS Systems Co., Ltd., NIPPON STEEL Information & Communication Systems Inc., Asia Pacific System Research Co., Ltd., Hirokei Co., Ltd., and Sopia Co., Ltd. Innovation & Technology Baltimore continued to demonstrate its commitment to delivery and execution of complete e-security solutions with the introduction of a new wireless initiative and new e-security offerings to meet customer demands: Baltimore's expertise in PKI hosting has enabled Baltimore to extend its product suite to provide customer choice in e-security deployment models through its UniCERT Options offering, launched in Q2. During the period, Baltimore increased the number of partners who provide PKI hosting, in addition to expanding its own hosting capabilities in the US, Japan and a third site planned for Ireland to service the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. marketplace. Baltimore also launched UniCERT Keysteps during the quarter, the world's first PKI deployment methodology. UniCERT Keysteps has empowered customers worldwide to reduce deployment lead times, generate significant cost savings and gain first to market advantage in their particular sector. In April 2000, Baltimore announced its next generation hardware security product range, Baltimore SureWare. This new hardware security product integrates with Baltimore's security software and provides high security with advanced performance for business to business e-security. Baltimore SureWare has been chosen by Europay International Europay International was the name of the entity created by the merger of Eurocard International and eurocheque international. The merged entity was headquartered in Waterloo, Belgium, on the same premises as EPSS (European Payment Systems Services) and MasterCard EMEA (the , the leading European payments systems company, to secure their new payment network. Baltimore Technologies intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: its focus on the mobile commerce sector following the launch of its 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. wireless e-security initiative earlier in the year. During the quarter, Telepathy products were licensed by a number of early adopters including Solomon Technology, Materna and Jinny. Baltimore Telepathy 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 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 "Best Internet Product" by the readers of Secure Computing Magazine Secure Computing Magazine is a computer magazine emphasising security. . There have been major developments in the e-security market, including the drafting and enactment of legislation across the major regions, particularly in the US and Europe which gives legal effect to digital signatures. These initiatives will further enable the global proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of e-commerce and mobile commerce and provide vast opportunities for Baltimore Technologies. "The e-security market is poised to grow significantly as companies and governments continue to recognize the potential presented by the global e-marketplace. Baltimore can deliver the solutions to enable these organizations to maximize their e-business opportunities. With this in mind we are constantly evaluating emerging technologies to deliver the optimal security portfolio to our customers," stated Fran Rooney, 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. 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 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, security applications and hardware cryptographic devices. Baltimore's global professional team 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 730 people worldwide and operates from 28 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 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). 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. 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. For further information and press releases on Baltimore Technologies, please visit http://www.baltimore.com
Unaudited interim condensed consolidated profit and loss accounts
Three Three Six Six
months months months months
to to to to
30 June 30 June 30 June 30 June
2000 1999 2000 1999
(pound)000 (pound)000 (pound)000 (pound)000
---------- ---------- ---------- ----------
Revenue
Existing operations 11,384 5,063 20,393 9,807
Acquisitions 4,870 -- 5,311 --
---------- ---------- ---------- ----------
16,254 5,063 25,704 9,807
Cost of sales (5,840) (2,026) (8,933) (4,164)
---------- ---------- ---------- ----------
Gross profit 10,414 3,037 16,771 5,643
Administrative expenses (26,666) (12,096) (42,271) (21,823)
---------- ---------- ---------- ----------
----------------------------------------------------------------------
Operating loss
Existing operations (3,750) (9,059) (12,304) (16,180)
Acquisitions (12,502) -- (13,196) --
---------- ---------- ---------- ----------
----------------------------------------------------------------------
Operating loss from
continuing operations (16,252) (9,059) (25,500) (16,180)
Share of loss of
associated undertaking (291) -- (291) --
Interest receivable
and similar income 3,207 147 5,296 345
Interest payable and
similar charges (77) (125) (164) (156)
---------- ---------- ---------- ----------
Loss on ordinary
activities before
taxation (13,413) (9,037) (20,659) (15,991)
Tax on loss on ordinary
activities (220) 14 (479) 14
---------- ---------- ---------- ----------
Loss for the financial
period (13,633) (9,023) (21,138) (15,977)
Minority interest 461 -- 478 --
---------- ---------- ---------- ----------
Loss for the period
retained for equity
shareholders (13,172) (9,023) (20,660) (15,977)
========== ========== ========== ==========
Loss per share Pence Pence Pence Pence
Basic (3.4) (3.0) (5.5) (5.7)
========== ========== ========== ==========
Unaudited interim condensed consolidated profit and loss accounts
Three Three Six Six
months months months months
to to to to
30 June 30 June 30 June 30 June
2000 1999 2000 1999
$000 $000 $000 $000
---------- ---------- ---------- ----------
Revenue
Existing operations 17,234 7,665 30,873 14,847
Acquisitions 7,373 -- 8,040 --
---------- ---------- ---------- ----------
24,607 7,665 38,913 14,847
Cost of sales (8,841) (3,067) (13,524) (6,304)
---------- ---------- ---------- ----------
Gross profit 15,766 4,598 25,389 8,543
Administrative expenses (40,370) (18,312) (63,994) (33,038)
---------- ---------- ---------- ----------
----------------------------------------------------------------------
Operating loss
Existing operations (5,677) (13,714) (18,627) (24,495)
Acquisitions (18,927) -- (19,978) --
---------- ---------- ---------- ----------
----------------------------------------------------------------------
Operating loss from
continuing operations (24,604) (13,714) (38,605) (24,495)
Share of loss of
associated undertaking (440) -- (440) --
Interest receivable
and similar income 4,855 223 8,018 522
Interest payable
and similar charges (117) (190) (248) (236)
---------- ---------- ---------- ----------
Loss on ordinary
activities before
taxation (20,306) (13,681) (31,275) (24,209)
Tax on loss on
ordinary activities (334) 21 (725) 21
---------- ---------- ---------- ----------
Loss for the financial
period (20,640) (13,660) (32,000) (24,188)
Minority interest 698 -- 723 --
---------- ---------- ---------- ----------
Loss for the period
retained for equity
shareholders (19,942) (13,660) (31,277) (24,188)
========== ========== ========== ==========
Loss per sha Cents Cents Cents Cents
Basic (5.15) (4.54) (8.33) (8.63)
========== ========== ========== ==========
Unaudited interim condensed consolidated balance sheets
Audited
30 June 31 December
2000 1999
(pound)000 (pound)000
--------------- --------------
Fixed assets
Intangible assets 126,389 45,953
Tangible assets 10,137 6,510
Investments 4,473 999
--------------- --------------
140,999 53,462
Current assets
Stocks 719 870
Debtors 23,081 10,452
Cash at bank and in hand 101,382 102,272
--------------- --------------
125,182 113,594
Creditors: amounts falling due
within one year (21,944) (13,414)
--------------- --------------
Net current assets 103,238 100,180
--------------- --------------
Total assets less current
liabilities 244,237 153,642
Creditors
(including convertible debt):
amounts falling due after more than
one year (3,203) (5,778)
Minority interests (9,132) --
--------------- --------------
Net assets 231,902 147,864
=============== ==============
Capital and reserves
Called up share capital 406 377
Share premium 292,470 134,809
Merger reserve 144,602 49,508
Other reserve 777 --
Profit and loss account (206,353) (36,830)
--------------- --------------
Shareholders' funds - equity 231,902 147,864
=============== ==============
Unaudited interim condensed consolidated balance sheets
30 June 31 December
2000 1999
$000 $000
--------------- --------------
Fixed assets
Intangible assets 191,340 69,568
Tangible assets 15,346 9,855
Investments 6,772 1,512
--------------- --------------
213,458 80,935
Current assets
Stocks 1,088 1,317
Debtors 34,942 15,823
Cash at bank and in hand 153,483 154,830
--------------- --------------
189,513 171,970
Creditors: amounts falling
due within one year (33,221) (20,307)
--------------- --------------
Net current assets 156,292 151,663
--------------- --------------
Total assets less
current liabilities 369,750 232,598
Creditors
(including convertible debt):
amounts falling due after
more than one year (4,849) (8,747)
Minority interests (13,825) --
--------------- --------------
Net assets 351,076 223,851
=============== ==============
Capital and reserves
Called up share capital 615 571
Share premium 442,770 204,087
Merger reserve 218,913 74,950
Other reserve 1,176 --
Profit and loss account (312,398) (55,757)
--------------- --------------
Shareholders' funds - equity 351,076 223,851
=============== ==============
Translated for convenience of the reader at the rate of (pound)1 =
$1.5139.
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