CyberGuard Corporation Reports Largest Quarterly Revenues in Company History - $7.6 Million Sets New Record.FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--April 27, 2001 Third Quarter Revenues Grow 45 Percent Year Over Year For Second Consecutive Quarter; Demand For Firewall Appliances A device that provides firewall protection for a network. It includes all the necessary hardware and software in a self-contained package that plugs in between the two networks being isolated. Most firewall appliances are solid state and include a stripped down operating system. in 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 Asia Help Fuel Record Sales Growth CyberGuard Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CYBG), the technology leader in network security, today reported revenues of $7.64 million for the fiscal third quarter ended March 31, 2001, an increase of 45 percent compared to $5.27 million for the same period in 2000. This was the second consecutive quarter where year-over-year revenue growth was 45 percent. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, third quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before net interest expense, income taxes, depreciation, amortization and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. ) net of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges was $436,000 or $0.03 per share. Although the company reported a net loss of ($888,000) or ($0.06) per common share, management noted that the results included one-time charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $788,000. Management attributed the strong performance to (1) increasing demand for CyberGuard's line of premium appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. firewalls among high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. customers worldwide, particularly in Europe and Asia where buyers place significant value on Common Criteria (Common Criteria for Information Technology Security) An international standard process for defining security objectives and for evaluating compliance with those objectives. The Common Criteria have largely replaced the Trusted Computer Security Evaluation Criteria (TCSEC), the Canadian EAL EAL English as an Additional Language EAL Evaluation Assurance Level EAL Eastern Airlines EAL Emergency Action Level EAL Environmental Analysis Laboratory EAL Evidence Analysis Library (American Dietetic Association) 4 certification; (2) growth in the infosecurity See infosec. market in general, especially the high-end segment; (3) growing overall awareness of CyberGuard and the superiority of its technology and products; and (4) greater sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. and knowledge among those responsible for making information assurance purchases as they expand, replace and refresh (1) To continuously charge a device that cannot hold its content. CRTs must be refreshed, because the phosphors hold their glow for only a few milliseconds. Dynamic RAM chips require refreshing to maintain their charged bit patterns. See vertical scan frequency and redraw. their network security solutions. "Information security is no longer an option; it is imperative imperative: see mood. imperative - imperative language in today's environment. The wrong security decision can have a devastating dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. negative financial impact on a company. CyberGuard delivers a high-quality product -- not a commodity product -- to high-end customers. That high-end segment is not willing to delay or compromise when it comes to network security purchases," stated Scott Hammack, chief executive officer of CyberGuard Corporation. "We've we've Contraction of we have. we've have won awards. We've won firewall `shoot-outs.' We've gotten the highest marks possible in a magazine user survey. But the ultimate test is the test we face in the marketplace when buyers are deciding whose firewall to purchase. The third quarter results -- particularly in light of what's been happening in other market segments -- show that we're we're Contraction of we are. we're we are winning in that most important testing ground Noun 1. testing ground - a region resembling a laboratory inasmuch as it offers opportunities for observation and practice and experimentation; "the new nation is a testing ground for socioeconomic theories"; "Pakistan is a laboratory for studying the use of American as well." The company announced that the backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for the quarter ended March 31, 2001, was $463,000 compared to $6.39 million for the quarter ended Dec. 31, 2000. The decrease resulted from the default by one customer in taking delivery of a large purchase commitment over a 12-month period. Product purchases by the customer represented only 2% of the company's revenues this third quarter. The company continues to have a good relationship with the customer and is in the process of renegotiating the contract. The company noted that, despite the default, revenues increased by 20 percent over the preceding quarter and 45 percent year-over-year. Hammack added that he is extremely pleased with the new management team he has assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. over the quarter and that he expects to see the company begin to realize its full potential.
Significant events since the start of the third quarter include:
-- Jan. 2 - Scott Hammack becomes CEO. Formerly CEO of MasterChart, a
successful health information technology company he sold in 2000,
Hammack chose CyberGuard over a number of other opportunities,
personally investing in the company as evidence of his belief in
the technology.
-- Jan. 8 - CyberGuard appliances become the first in the world to
earn Common Criteria EAL4 certification, a rigorous independent
security standard recognized by 15 countries around the world and
required by a growing number of government agencies as part of
their purchasing specifications.
-- Jan. 18 - Pat Clawson joins CyberGuard as president. Clawson has a
history of building successful sales teams and driving sales
results in the face of declining markets.
-- Jan. 24 - Certain debt holders, including some board members,
convert debt to equity and exercise warrants. Combined with
investment from new CEO, total capital infusion amounts to $11
million. CyberGuard moves to strongest cash position in recent
company history.
-- Feb. 5 - CyberGuard earns highest overall satisfaction rate among
largest companies and government as ranked by users in Information
Security magazine reader survey. CyberGuard got the only perfect
score in one category, beating out all competitors.
-- Feb. 7 - CyberGuard reports quarterly revenues for the three
months ended December 31, 2000, of $6.35 million, a new record,
and a 45-percent increase over same period last year.
-- Feb.12 - Major Asian telecommunications company (Taiwan Fixed
Network Telecom) selects CyberGuard KnightSTAR appliances to
protect their growing broadband network and infrastructure.
-- Feb. 14 - Mike Matte, a financial executive with more than 11
years of "Big Five" accounting firm experience and a successful
high-tech company background, is named the new CFO of CyberGuard.
-- Mar. 12 - Network World magazine names CyberGuard one of their
three new industry benchmarks. After testing 16 different firewall
appliances, KnightSTAR came out as one of the top three
performance benchmarks.
-- Mar. 26 - InternetWeek tests STARLord against one of only two
other gigabit competitors and writes that STARLord is "best
overall."
-- Mar. 27 - Andrew Clarke, who was with the company since it was
part of Harris Corp. and who has led CyberGuard to market
leadership in the UK, is named vice president of worldwide
marketing.
-- April 1 - European testing lab gives FireSTAR - CyberGuard's
smaller scale appliance - top marks after a thorough evaluation.
-- April 3 - SC Magazine review awards highest overall five star
rating to STARLord.
-- April 5 - Paul Henry, formerly managing director of Asian
operations, and responsible for growing CyberGuard's Asian
revenues at greater than 100-percent compound annual growth rate
two years running, is named vice president of sales to head up
efforts in North and South America and replicate the results from
Asia.
-- April 10 - STARLord gets the highest award possible - a gold award
- from independent testing lab in Europe, only the fourth one ever
awarded.
Conference Call Information A conference call to review third quarter results will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 27, at 10:00 a.m. Eastern Time with senior members of the company's management team present. To participate, please dial 1-800-521-5439 and enter pass code 1016485. A recording of the conference call proceedings will be available immediately after the call's conclusion on April 27 and will be accessible until 7:00 p.m. eastern time on May 4. U.S. callers may listen to the recording by dialing 1-800-628-5288 and entering pass code 1016485. International callers may access the recording by dialing 303-804-1855 and entering pass code 1016485. About CyberGuard Corporation CyberGuard Corporation, the technology leader in network security, provides enterprise and electronic commerce security solutions to Fortune 1000 companies and governments worldwide. CyberGuard's award winning, industrial-strength in·dus·tri·al-strength adj. Extremely strong, durable, or concentrated: industrial-strength cardboard; industrial-strength detergent. Adj. 1. firewall products and services protect the integrity of data and applications from unauthorized access. CyberGuard's appliances are the world's first to receive Common Criteria EAL4 certification, the most prestigious and rigorous IT security evaluation available. The company has world headquarters in Ft. Lauderdale Lauderdale is the name of various places:
Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , and branch offices worldwide. More information on CyberGuard Corporation can be found at http://www.cyberguard.com. 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. Statements regarding estimates and future prospects contained in this press release are forward-looking statements. These statements are based upon assumptions and analyses made by the Company in light of current conditions, future developments, and other factors the Company believes are appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , or information obtained from third parties, and are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that forward-looking statements are not guarantees and that actual results might differ materially from those suggested in the forward-looking statements. Some of the factors that might cause future actual events to differ from those predicted or assumed include: future advances in technologies and computer security; the Company's history of losses; the Company's ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on its business plans; the Company's dependence on outside parties such as its key customers and alliance partners; competition from major computer hardware, software, and networking companies; uncertainties in availability of expansion capital in the future and other risks associated with capital markets; the outcome of purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. class action lawsuits class action lawsuitA lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax against the Company; and recent changes in management. For a more complete discussion regarding forward-looking statements, the reader is referred to the Company's periodic reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, including the 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. for the fiscal year ended June June: see month. 30, 2000, and other information filed with the Commission.
CYBERGUARD CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands except share and per share data)
Three Months Ended Nine Months Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Products $6,072 $4,577 $13,951 $11,340
Services 1,563 688 2,627
----------------------------------------------
Total revenues 7,635 5,265 18,031 13,967
Cost of revenues:
Products 1,696 1,305 3,576 2,692
Services 606 474 1,796 1,421
----------------------------------------------
Total cost of revenues 2,302 1,779 5,372 4,113
----------------------------------------------
Gross profit 5,333 3,486 12,659 9,854
----------------------------------------------
Operating expenses:
Research and development 1,682 568 4,109 2,120
Selling, general and
administrative 4,199 2,216 10,958 7,114
----------------------------------------------
Total operating
expenses 5,881 2,784 15,067 9,234
----------------------------------------------
Operating income (loss) (548) 702 (2,408) 620
----------------------------------------------
Other income (expense)
Interest expense, net (310) (317) (749) (979)
Gain (loss) on sale of
assets (1) 0 12 0
Other income (expense) (29) (115) (88) (16)
----------------------------------------------
Total other income
(expense) (340) (432) (825) (995)
Loss before cumulative
effect of change in
accounting principle $ (888) $ 270 $(3,233) $ (375)
Cumulative effect of
change in accounting
principle 0 0 (129) 0
Net Loss $ (888) $ 270 $(3,362) $ (375)
==============================================
Basic earnings (loss)
per common share:
Before cumulative
effect of change in
accounting principle $ (0.06) $ 0.03 $ (0.28) $ (0.04)
Cumulative effect of
change in accounting
principle $ - $ - $ (0.01) $ -
-----------------------------------------------
Basic earnings (loss)
per common share $ (0.06) $ 0.03 $ (0.29) $ (0.04)
===============================================
Weighted average number
of common shares
outstanding 14,890,742 9,346,682 11,524,805 9,193,995
===============================================
Diluted earnings (loss)
per common share:
Before cumulative
effect of change in
accounting principle $ (0.06) $ 0.01 $ (0.28) $ (0.04)
Cumulative effect of
change in accounting
principle $ - $ - $ (0.01) $ -
-----------------------------------------------
Diluted (earnings)
loss per common share $ (0.06) $ 0.01 $ (0.29) $ (0.04)
===============================================
Weighted average
number of diluted
common shares
outstanding 14,890,742 19,192,665 11,524,805 9,193,995
===============================================
See accompanying notes to condensed consolidated financial
statements.
Pro forma EBITDA Data: (1)
Net Loss (888)
---------
Interest, depreciation and amortization 536
One time charges 788
---------
Pro forma EBITDA 436
=========
(1) The pro forma data excludes interest, depreciation and
amortization, one-time charges associated with the management
restructuring in January, marketing costs associated with product
branding and write-off of beneficial conversion features associated
with the conversion of warrants in January.
CYBERGUARD CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
Mar. 31, June 30,
2001 2000
-------- --------
ASSETS
Cash and cash equivalents $ 4,321 $ 2,497
Restricted cash 762 800
Accounts receivable, less allowance
for uncollectible accounts of
$144 at Mar. 31, 2001 and $52 at
June 30, 2000 5,172 3,614
Inventories, net 494 159
Other current assets 1,540 1,255
------------------------
Total current assets 12,289 8,325
Property and equipment at cost,
less accumulated depreciation of
$1,639 at Mar. 31, 2001 and
$1,181 at June 30, 2000 1,257 1,086
Capitalized software, net 944 1,142
Non-compete agreements, net 100 280
Other assets 110 163
------------------------
Total assets $ 14,700 $ 10,996
========================
LIABILITIES AND SHAREHOLDERS' DEFICIT
Line of credit and note payable 526 1,575
Accounts payable 1,296 1,424
Deferred revenue 2,938 2,912
Accrued expenses and other liabilities 2,560 1,942
------------------------
Total current liabilities 7,320 7,853
Note Payable 650 650
Convertible debenture, net 242 4,445
------------------------
Total liabilities 8,212 12,948
Shareholders' deficit
Common stock par value $0.01 authorized
50,000,000 shares issued and
outstanding 17,953,228 at Mar. 31, 2001
and 9,799,321 at June 30, 2000 180 98
Additional paid-in capital 86,919 75,290
Accumulated deficit (80,813) (77,451)
Accumulated other comprehensive income 202 111
------------------------
Total shareholders' deficit 6,488 (1,952)
------------------------
Total liabilities and ------------------------
shareholders' deficit $ 14,700 $ 10,996
========================
See accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. notes to condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion