CyberGuard Corporation Reports First Quarter Fiscal Year 1997 Results.FT. LAUDERDALE Lauderdale is the name of various places:
 This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . on June 26, 1996. For the first quarter ended September 30, 1996, the Company reported a net loss of $8.3 million, or ($1.20) per share, which includes a one-time $6.2 million loss, or ($0.91) per share, related to the sale of 10 million shares of Concurrent Computer Corporation (Nasdaq: CCUR CCUR Center for Crops Utilization Research ) common stock. The $8.3 million loss compares to a $5.3 million loss, or ($.90) per share, reported by the Company for the year-ago period. The Company continued to see strong demand for its firewall-related products throughout the quarter, including the newly announced CyberGuard Release 3.0 Firewall. CyberGuard's firewall unit shipments increased to 103 units, up from 94 systems in the previous quarter. This represents the fifth consecutive quarter of increased revenue and unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. for the Company's firewall and related products. Bob Carberry, chairman, president and chief executive officer of CyberGuard Corporation noted, "We see strong worldwide demand for our products continuing as customers become increasingly aware of the need for both a firewall and the secure operating system The term "secure operating system" is a misnomer. Relevant articles include:
named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. revenue, and accounted for 54 percent of total revenues for the quarter." "CyberGuard continued to deliver revenue growth this quarter while accomplishing many significant milestones and launching several important new business initiatives that will uniquely position the Company for continued growth," Carberry added. "The CyberGuard Firewall Release 3.0 with support for the Intel PC platform was shipped to selected customers. This product has excellent security and performance attributes, and provides a software-only solution with significantly improved gross margins." CyberGuard announced and demonstrated SafeNet/Enterprise (a Virtual Private Networking solution) to customers this quarter, with availability slated by December 1996. The Company also successfully transitioned and enhanced its sales and marketing organization and opened several new sales offices. Eight new resellers were added to the CyberGuard indirect channel under the CyberGuard Security Alliance Partner Program since its announcement in September. The Company also continued to develop strategic partnerships including one with AssureNet Pathways to deliver enhanced user authentication See authentication. capabilities with the CyberGuard Firewall family of products. For the quarter, CyberGuard reduced its stake in Concurrent Computer Computer by selling 10 million shares of Concurrent common stock. Due to the depressed price Depressed price In the context of stocks, stock whose market price is low in comparison to stocks in its sector. of Concurrent stock at the time of the sale, the Company recognized a loss of $6.2 million. The proceeds from the stock sale were used to pay off the Company's outstanding credit line and outstanding obligations related to the sale of its Real-time Division to Concurrent. As a result, CyberGuard concluded the September quarter with zero lending debt on the Balance Sheet, approximately $6 million in cash, and approximately $9.3 million in working capital. This leaves the Company well positioned to meet its future liquidity requirements. This press release contains 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. that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, competitive pressures, general economic conditions and the risk factors detailed in CyberGuard Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. About CyberGuard CyberGuard Corporation (NASDAQ:CYBG), formerly the Trusted Systems In the security engineering subspecialty of computer science, a trusted system is a system that is relied upon to a specified extent to enforce a specified security policy. As such, a trusted system is one which failure may break a specified security policy. Division of Harris Computer Systems Corporation, is a leading developer of network security solutions to Fortune 1000 companies and the government. The Company's CyberGuard Firewall family of products provide the strongest enterprise security solutions available because they are built on a secure operating system that utilizes an extension of multi-level security called Multiple Virtual Secure Environments (MVSE). MVSE matches data access to user privileges See user permissions. , preventing theft or unauthorized access to highly sensitive Adj. 1. highly sensitive - readily affected by various agents; "a highly sensitive explosive is easily exploded by a shock"; "a sensitive colloid is readily coagulated" data via networks at lower levels of security. CyberGuard's unique firewall solution is available as an integrated hardware/software solution, as well as a software-only solution available on the Intel(R) personal computer platform. The CyberGuard Firewall has undergone numerous third-party and government evaluations worldwide. In the U.S., the operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. and networking product have been evaluated by the National Computer Security Center (NCSC (National Computer Security Center) The arm of the U.S. National Security Agency that defines criteria for trusted computer products, which are embodied in the Orange Book and Red Book. ) at the B1 level of trust and by the National Computer Security Association (NCSA (1) (National Center for Supercomputing Applications, Urbana-Champaign, IL, www.ncsa.uiuc.edu) A high-performance computing facility located at the University of Illinois at Urbana-Champaign. ). In France, the CyberGuard Firewall has been tested by Celar. In Europe, the CyberGuard Firewall is the first firewall solution to undergo ITSEC See NCSC. E3 evaluation. The company has US headquarters in Ft. Lauderdale, Florida, and international headquarters in Europe. Products are sold worldwide through a direct sales force, value added resellers See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). , distributors, network integrators and Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. . For more information, please call (800) 666 4273 x5615 or (954) 977-5615; e-mail info@mail.cybg.com; or visit CyberGuard's web site at www.cyberguardcorp.com -0-
CYBERGUARD CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
($000's except per share data)
Three Months Ended
Sept. 30, Sept. 30,
1996 1995
Revenues:
Firewall Products & Services $ 3,067 $ 897
Real Time Product Revenues - 7,810
Total Revenues 3,067 8,707
Cost of Revenues:
Firewall Products & Services 1,873 667
Real Time Product Revenues 4,488
Total Cost of Revenues 1,873 5,155
Gross Margin 1,194 3,552
Operating Expenses:
Research & Development 1,056 250
Selling, General & Administrative 2,344 1,285
Real Time Related 7,643
3,400 9,178
Operating Loss (2,206) (5,626)
Other Income & (Expense)
Interest 165 95
Loss on Sale of Equity Securities (6,211)
Other (9) 228
(6,055) 323
Net Loss $ (8,261) $ (5,303)
Loss per Common Share $ (1.20) $ (0.90)
Weighted Average Number of Shares 6,859,146 5,911,437 Note 1
Note 1. Number of shares outstanding adjusted for a 1 for 3 split
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SELECTED BALANCE SHEET DATA
(Numbers in $000)
Sept. 30, June 30,
1996 1996
Cash $ 5,981 $ 3,617
Securities Held For Resale 3,988 13,600
Accounts Receivable, net 4,624 3,668
Inventory 605 134
Other Current Assets 453 565
Total Current Assets 15,651 21,584
Property and Equipment, net 1,466 1,152
Other Assets 1,074 4,976
Total Assets $ 18,191 $ 27,712
Current Liabilities $ 6,390 $ 6,267
Short Term Debt Borrowings 3,200
Total Liabilities 6,390 9,467
Total Shareholders' Equity 11,801 18,245
Total Liabilities and
Shareholders' Equity $ 18,191 $ 27,712
Note to Editors: To receive CyberGuard press releases via Fax please call (800) 344-4297. CyberGuard and CyberGuard Firewall are trademarks of CyberGuard Corporation. All other trademarks are property of their respective owners. CONTACT: CyberGuard Corporation, Ft. Lauderdale Lisa Thornhill - Media and Investor Relations Investor relations The process by which the corporation communicates with its investors. (954) 977-5615 e-mail: lthornhill@mail.cybg.com or Carson Group, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of IR Consultants Felise Glantz (212) 581-4000 |
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