BindView Announces Financial Results for First Quarter of 2005.HOUSTON -- BindView Corporation (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 :BVEW BVEW Binary View ), a leading provider of proactive IT security compliance solutions, today announced results for the first quarter ended March 31, 2005. Financial results were in line with updated estimates issued on April 5, 2005. Revenues for the first quarter of 2005 were $15.0 million, an increase compared with $14.8 million reported in the first quarter of 2004. License revenues for the first quarter of 2005 were $5.6 million, down 5.5 percent from $5.9 million in the first quarter of 2004. Services revenues for the first quarter of 2005 were $9.4 million, up 5.0 percent compared with services revenues of $8.9 million in the first quarter of 2004. Services revenues are comprised of maintenance revenues of $7.9 million and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues of $1.5 million, up from $7.5 million in maintenance revenues and $1.4 million in professional services revenues in the first quarter of 2004. Operating costs operating costs npl → gastos mpl operacionales and expenses for the first quarter were $16.5 million, compared with $15.7 million in the first quarter of 2004. The increase was due primarily to $0.6 million in expenses related to the sales reorganization and executive recruiting fees incurred in connection with two executive searches for leaders of its worldwide sales and alliance programs. The Company does not expect significant on-going fees related to these two executive searches. Net loss for the first quarter of 2005 was $3.5 million ($0.07 per share), compared with a net loss of $2.8 million ($0.06 per share) in the first quarter of 2004. At March 31, 2005, the Company's cash and short-term investments (including $2.3 million of restricted cash) were $40.0 million, compared with $34.9 million at December 31, 2004. At March 31, 2005, the Company had no outstanding debt. "Although the first quarter was challenging, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the market opportunities and our ability to improve performance," said BindView Chairman and 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. Eric J. Pulaski. "With the sales reorganization largely complete, we are bringing our new sales model to full effectiveness and anticipate execution to improve progressively. Supporting these efforts is an array of marketing programs designed to bolster our market position. In addition, the R&D organization is meeting development schedules for new products designed to address IT security compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). . While Sarbanes-Oxley lockdowns affected many customer purchasing decisions in the quarter, we continue to see a growing market opportunity for our solutions." During the first quarter, the Company repositioned its product portfolio based around the key IT security compliance solution areas: Vulnerability Management, Configuration Management, Identity Administration and Compliance Monitoring. This integrated approach provides organizations with a tightly linked security, operations and compliance foundation that strengthens, streamlines and automates controls for global IT infrastructures. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program As announced on April 5, 2005, the Board of Directors has approved a stock repurchase program, whereby management of the Company may spend up to $10 million for the repurchase of BindView common stock, subject to and in accordance with Securities and Exchange Commission regulations. The Company commenced purchasing shares under this program on April 8, 2005. First Quarter Highlights SC Magazine Global Award Winner: Named Best Identity Management Solution by SC Magazine, one of the industry's leading security publications. Also named as a finalist in two categories: "Best Network Security Solution" and "Best Security Solution 2005." New Version of Compliance Center: Launched Compliance Center 2.0, the first software of its kind to be certified See certification. against the stringent Center for Internet Security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ) Level-2 Benchmarks. Provides newly enhanced support for Windows, UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). , Linux and NetWare environments, and adds integration with HP Service Desk and Remedy Help Desk. Extended Integration Plans: Announced plans for new integration capabilities to make BindView solutions interoperable The ability for one system to communicate or work with another. See interoperability. with enterprise applications, creating plug-and-play interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. with leading third-party products and helping customers to incorporate IT security compliance monitoring capabilities into their traditional network and systems management applications and frameworks. New bv-Control for Oracle Product: Extended enterprise database security compliance capabilities with the release of bv-Control for Oracle, the dominant vendor in the cross-platform relational database relational database Database in which all data are represented in tabular form. The description of a particular entity is provided by the set of its attribute values, stored as one row or record of the table, called a tuple. market, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IDC. Announced membership in the Oracle Partner Program. Insight05 Customer Forum: Conducted the Company's third customer conference, featuring keynotes from executive leadership and leading fraud authority Frank W. Abagnale. New Sales Leadership: Announced the promotion of Matthew J. Miller, a six-year BindView veteran, to vice president of Americas sales. New Marketing Leadership: Announced the appointments of Steve Kahan as senior vice president of worldwide marketing, and Chris Smith Chris Smith is the name of: In politics:
COBIT (Control OBjectives for Information and related Technology) A business-oriented set of standards for guiding management in the sound use of information technology from the Information Systems Audit and Control Association (ISACA) (www.isaca.org). Implementation Practices Webinar: Conducted security compliance best practices webinar with participation by Portland General Electric's Chief IT Auditor Ross Westcott and Brandon Dunlap, president and managing partner of Brightfly Consulting. IIA (1) (Information Industry Association, Washington, DC) In 1999, IIA merged with SPA (Software Publishers Association) to become the Software & Information Industry Association. See SIIA. Keynote: CEO Eric Pulaski delivered a keynote address keynote address n. An opening address, as at a political convention, that outlines the issues to be considered. Also called keynote speech. Noun 1. titled "IT Security & Compliance: Simplifying Risk Management" at the annual Institute of Internal Auditors “IIA” redirects here. For IIA in decision theory, see Independence of irrelevant alternatives. Established in 1941, The Institute of Internal Auditors (IIA) is an international professional association of more than 128,000 members with global headquarters in Information Technology Conference. ISACA/IIA Keynote: For the second year, BindView Senior Security Analyst Mark "Simple Nomad" Loveless delivered the keynote address titled "White Collar Cybercrimes" at the annual joint meeting of the Dallas IIA and ISACA (Information Systems Audit and Control Association, Rolling Meadows, IL, www.isaca.org) A membership association dedicated to information systems auditing and security. Founded as the EDP Auditors Association in 1969, ISACA provides certification in auditing and security (see CISA and CISM). chapters. Issued Rapid Fire Updates: Announced checks for 11 newly identified Microsoft vulnerabilities through the Company's Emergency Rapid Fire Update service. Financial Outlook For the full year, the Company expects revenues of at least $79 million and net income (before the effects of any restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ) of at least $3.3 million ($0.06 per share). These estimates assume continual improvement Continual Improvement (also called incremental improvement or staircase improvement) is a process or productivity improvement tool intended to have a stable and consistent growth and improvement of all the segments of a process or processes. in sales force productivity over the course of 2005 and closure of at least two of the 7-figure opportunities in the sales pipeline. Scheduled First Quarter 2005 Conference Call The Company will hold a conference call at 4:00 p.m. CDST CDST Central Daylight Savings Time CDST Chassis Dynamometer Smoke Test (diesel emissions test) CDST Clinical Decision Support Tool CDST Cassini Deep Space Transponder CDST Certified Desktop Support Technician today to provide additional comments. The call will be led by Chairman and Chief Executive Officer Eric Pulaski.
Date/Time: April 28, 2005 - 4:00 p.m. CDST
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About BindView BindView Corporation is a leading provider of proactive IT Security Compliance software worldwide. BindView solutions enable customers to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. and automate Compliance Monitoring, Vulnerability Management, Identity Administration and Configuration Management operations across the enterprise. By following established regulatory guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , audit frameworks, technical standards and industry best practices, BindView solutions enable customers to implement a policy-based approach toward safeguarding their IT environments from internal and external threats and vulnerabilities. The result is improved security and improved compliance auditing across users, systems, applications, and databases based on Microsoft, UNIX, LINUX and Novell operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . With BindView insight at work(TM), customers benefit from reduced risk and improved operational efficiencies with a verifiable return on investment. More than 20 million licenses have shipped to 5,000 companies worldwide, spanning all major business segments and the public sector. Contact BindView via e-mail at info@bindview.com, on the web at http://www.bindview.com, and at 1-713-561-4000 or 1-800-749-8439. Statements in this news release not based on historical fact are "forward-looking" statements pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results could differ materially because of factors such as the risk factors and other matters described from time to time in BindView's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filings, Form 10-Q Form 10-Q See 10-Q. filings, and other periodic filings with the Securities and Exchange Commission, including without limitation the time required for large transactions to close and the general willingness of customers to make investments in information technology.
BindView Development Corporation
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31,
-----------------------
2005 2004
----------- ----------
Revenues:
Licenses $5,588 $5,912
Services 9,371 8,921
----------- ----------
14,959 14,833
----------- ----------
Cost of revenues:
Licenses 178 140
Services 2,049 1,831
----------- ----------
2,227 1,971
----------- ----------
Gross profit 12,732 12,862
Operating costs and expenses:
Sales and marketing 9,584 9,180
Research and development 4,593 4,576
General and administrative 2,280 1,898
----------- ----------
16,457 15,654
----------- ----------
Operating loss (3,725) (2,792)
Other income 241 94
----------- ----------
Loss before income taxes (3,484) (2,698)
Provision for income taxes 26 70
----------- ----------
Net loss $(3,510) $(2,768)
=========== ==========
Loss per share - basic and diluted $(0.07) $(0.06)
=========== ==========
Number of shares used to calculate per
share amounts, basic and diluted 47,889 47,329
BindView Development Corporation
Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2005 2004
------------- ------------
(unaudited)
Cash and cash equivalents $34,029 $25,666
Cash - restricted 2,250 2,250
Short term investments 3,769 6,974
Accounts receivable, net 6,152 14,657
Other 1,988 1,634
------------- ------------
Total current assets 48,188 51,181
Property and equipment, net 5,757 6,664
Other assets 551 709
------------- ------------
Total assets $54,496 $58,554
============= ============
Accounts payable $2,304 $3,023
Accrued liabilities 4,595 5,307
Accrued compensation 2,230 3,603
Deferred revenues 13,944 11,963
------------- ------------
Total current liabilities 23,073 23,896
Deferred revenues 2,332 2,707
Other 1,334 1,824
Common stock 1 1
Additional paid-in capital 107,791 106,244
Accumulated deficit (80,826) (77,316)
Deferred stock compensation (918) (789)
Note receivable from shareholder (65) (131)
Accumulated other comprehensive income 1,774 2,118
------------- ------------
Total shareholders' equity 27,757 30,127
------------- ------------
Total liabilities and
shareholders' equity $54,496 $58,554
============= ============
Common shares outstanding 48,626 47,849
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