CyberGuard Reports Nine Percent Revenue Increase for FY 2002 Third Quarter, Achieving Two Consecutive Quarters of Sequential Growth.Business Editors/Technology Writers 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 25, 2002 Company Records Positive Earnings for Second Consecutive Quarter; Shift in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Channel Strategy Proves Productive as US Channel Product Revenues Jump from Eight to 47 Percent Over Two Quarters CyberGuard Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CYBG), the technology leader in network security, today reported a net profit of $81,000 on revenues of $6.291 million for the third quarter of fiscal year 2002 ending March 31, 2002. This is the second consecutive quarter of positive income for the company and the second consecutive quarter the company has posted sequential One after the other in some consecutive order such as by name or number. growth in revenues. The net profit for the third quarter of the current fiscal year of $81,000 compares to a net loss for the same period a year earlier of $888,000, an improvement of $969,000. For the nine months ending March 31, 2002, the company posted a net loss of $717,000 compared to a net loss for the same period a year earlier of $3.362 million, an improvement of $2.645 million. The net income to common stock shareholders for the quarter was $0.00 per share compared to a net loss for the same quarter a year ago of $0.06 per share. For the second consecutive quarter, CyberGuard has posted revenue growth over the preceding quarter. While third quarter revenues were lower than revenues of $7.635 million posted for the same quarter a year earlier, they represented an increase of 9 percent over revenues of $5.753 million for the second quarter of fiscal year 2002. Second quarter revenues, in turn, represented an increase of 26 percent over revenues of $4.576 million for the first quarter of fiscal year 2002. Scott Hammack, chief executive officer of CyberGuard Corporation, stated, "Being able to report positive earnings for two consecutive quarters along with sequential revenue growth for the past two quarters marks a new milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. for CyberGuard. This is even more significant when you consider that it is occurring during very difficult economic times. It shows we are clearly moving in the right direction with the right team. Additionally, we have the best balance sheet in the history of our company, we continue to maintain a strong cash position, and we have almost no debt. If you look at the first nine months of this fiscal year and compare it to the first nine months of last fiscal year, the $2.645 million bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. improvement is dramatic." Hammack said the move to a channel distribution model in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was having a positive impact. He stated, "In the past two quarters, we've we've Contraction of we have. we've have seen our product revenues from US channel sales in North America grow from eight to almost 50 percent." He added that the company has broadened its customer base in the US and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and is significantly less dependent on a few large direct customers this year compared to a year ago. Significant events since the start of the third quarter include: -- January 30 - CyberGuard announces settlement with Securities and Exchange Commission of investigation announced in the fall of 1998. -- March 6 - CyberGuard holds briefing on international information assurance standards for government officials and technology leaders in Washington DC. -- March 19 - CyberGuard's stock moves from Pink Sheets to begin trading on OTC Bulletin Board. -- March 21 - CyberGuard's KS firewall/VPN wins "Best in Show" award and "Best New Technology" in security hardware at FOSE 2002, large information technology conference in Washington DC. -- April 16 - CyberGuard's KS firewall/VPN earns five-star rating from SC Magazine and reviewer says CyberGuard provides "Rolls Royce of firewalls." -- April 23 - CyberGuard extends Common Criteria evaluation assurance level to EAL4+. -- April 24 - CyberGuard takes top honors, winning Academy Award of security industry at Infosecurity 2002 in London. Conference Call Information A listen-only conference call to review third quarter results will be held on Thursday Thursday: see week. , April 25, at 4:30 p.m. Eastern Time. To participate, please dial 1-303-694-3471 and enter pass code 1757389. A recording of the conference call proceedings will be available immediately after the call's conclusion on April 25 and will be accessible until 5:00 p.m. Eastern Time on May 2. Both U.S. and international callers may listen to the recording by dialing 1-303-267-1036 and entering pass code 1757389. 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/VPN products and services protect the integrity of data and applications from unauthorized access. CyberGuard's appliances, which include SL, KS, FS and LX, hold 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 Evaluation Assurance Level The Evaluation Assurance Level (EAL1 through EAL7) of an IT product or system is a numerical grade assigned following the completion of a Common Criteria security evaluation, an international standard in effect since 1999. 4+ (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, 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, expectations 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; overall network security spending; global economic conditions; 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 the SEC investigation; 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, 2001, and other information filed with the Commission.
CYBERGUARD CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Products $ 4,557 $ 6,072 $11,526 $ 13,951
Services 1,734 1,563 5,093 4,080
-------------------------------------------------
Total revenues 6,291 7,635 16,619 18,031
-------------------------------------------------
Cost of revenues:
Products 1,377 1,696 3,243 3,576
Services 511 606 1,455 1,796
-------------------------------------------------
Total cost of revenues 1,888 2,302 4,698 5,372
-------------------------------------------------
Gross profit 4,403 5,333 11,921 12,659
-------------------------------------------------
Operating expenses:
Research and
development 1,239 1,682 3,598 4,109
Selling, general
and administrative 3,079 4,199 9,034 10,958
-------------------------------------------------
Total operating
expenses 4,318 5,881 12,632 15,067
-------------------------------------------------
Operating income/(loss) 85 (548) (711) (2,408)
-------------------------------------------------
Other income/(expense):
Interest income/
(expense), net 13 (310) 40 (749)
Gain/(loss) on
sale of assets 0 (1) (17) 12
Other expense (17) (29) (29) (88)
-------------------------------------------------
Total other expense (4) (340) (6) (825)
Income/(loss) before
cumulative effect of
change in accounting
principle $ 81 $ (888) $ (717) $ (3,233)
-------------------------------------------------
Cumulative effect of
change in accounting
principle 0 0 0 (129)
Net Income/(loss) $ 81 $ (888) $ (717) $ (3,362)
=================================================
Basic earnings/(loss)
per common share:
Before cumulative effect
of change in accounting
principle $ 0.00 $ (0.06) $ (0.04) $ (0.28)
Cumulative effect of
change in accounting
principle $ - $ - $ - $ (0.01)
-------------------------------------------------
Net Income/(loss)
per common share $ 0.00 $ (0.06) $ (0.04) $ (0.29)
=================================================
Weighted average
common shares
outstanding 18,883 14,891 18,700 11,525
=================================================
Diluted earnings/(loss)
per common share:
Before cumulative effect
of change in
accounting principle $ 0.00 $ (0.06) $ (0.04) $ (0.28)
Cumulative effect of
change in accounting
principle $ - $ - $ - $ (0.01)
-------------------------------------------------
Net Income/(loss)
per common share $ 0.00 $ (0.06) $ (0.04) $ (0.29)
=================================================
Diluted common shares
outstanding 22,369 14,891 18,700 11,525
=================================================
CYBERGUARD CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(Amounts in thousands)
Mar. 31, June 30,
2002 2001
---- ----
ASSETS
Cash and cash equivalents $ 5,441 $ 4,771
Restricted cash 20 780
Accounts receivable, less
allowance for uncollectible
accounts of $30 at Mar. 31, 2002
and $36 at June 30, 2001 5,156 4,147
Inventories, net 471 294
Other current assets 973 1,065
--------------------------
Total current assets 12,061 11,057
--------------------------
Property and equipment at cost,
less accumulated depreciation
of $2,117 at Mar. 31, 2002 and
$1,710 at June 30, 2001 982 1,211
Capitalized software, net 360 741
Other assets 91 90
--------------------------
Total assets $ 13,494 $ 13,099
==========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit and note payable 234 919
Accounts payable 945 967
Convertible debenture, net 52 62
Deferred revenue 3,359 2,308
Accrued expenses and other liabilities 2,259 2,369
--------------------------
Total liabilities 6,849 6,625
--------------------------
Shareholders' equity
Common stock par value $0.01
authorized 50,000 shares
issued and outstanding 18,970
at Mar. 31, 2002 and 18,429
at June 30, 2001 190 184
Additional paid-in capital 88,424 87,557
Accumulated deficit (82,183) (81,467)
Accumulated other comprehensive income 214 200
--------------------------
Total shareholders' equity 6,645 6,474
--------------------------
--------------------------
Total liabilities and
shareholders' equity $ 13,494 $ 13,099
==========================
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