SafeNet Reiterates Guidance and Clarifies Revenue Assumptions.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. -- SafeNet, Inc. (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 :SFNT), setting the standard for information security, reiterated guidance from the conference call on October October: see month. 27, 2005 and clarified revenue growth assumptions based on questions from investors after the call. In addition to this guidance, the company is providing GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). guidance for the Fourth Quarter 2005 and the years ending December December: see month. 31, 2005 and 2006. Current Outlook for Fourth Quarter and Full Year 2005, and Full Year 2006 The following statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release.
-- For the quarter ending December 31, 2005, SafeNet currently
expects to achieve revenues in the range of $78 to $82
million. The non-GAAP net income is expected to be in the
range of $0.55 to $0.60 per diluted share. Non-GAAP guidance
excludes various integration expenses and non-recurring
charges, which are expected to be approximately $1 million.
GAAP net income is expected to be in the range of $0.33 to
$0.38 per diluted share.
-- The Company expects to ship approximately $18 million from
the $150 million Indefinite Delivery Indefinite Quantity
(IDIQ) contract awarded by the Department of Defense for
the KIV-7M link encryptor product, announced on September
29, 2005.
-- Approximately 40% of this $18 million replaces revenue
from the legacy KIV-7 link encryptor. Therefore, the
company expects approximately $10 million net increase
from Third Quarter 2005 in the KIV-7 family product
area of its Classified Government business.
-- For the year ending December 31, 2005, the Company's guidance
for revenue is expected to be in the range of $255 to $275
million. Non-GAAP net income guidance for 2005 is expected to
be between $1.45 and $1.55 per diluted share. Non-GAAP
guidance excludes various integration expenses and
non-recurring charges. GAAP net income expected to be between
$0.25 and $0.35 per diluted share.
-- For the year ending December 31, 2006, the Company's guidance
for revenue is expected to be in a range of $295 to $315
million, and non-GAAP net income guidance range of $1.70 and
$1.90 per diluted share. GAAP net income is expected to be
between $1.20 and $1.40 per diluted share. The expected GAAP
net income excludes the impact of FASB Statement No. 123(R),
Share Based Payment, as the Company is assessing the impact of
the Statement.
-- The Company expects approximately $15 - $20 million of net
revenue increase from the Classified Government business
line for FY 2006. This increase does not include any
additional revenue from the HAIPE version of the KIV-7M,
expected to be available at mid year FY 2006. There are a
few main factors affecting the revenue increase:
-- In 2006, the Company expects to ship approximately $65
million of KIV-7M versus approximately $40 million of
KIV-7 product in 2005. The majority of this 2006
revenue replaces revenue from the legacy KIV-7 link
encryptor, for a net increase of approximately $25
million.
-- The Company indicated that a new $20 million
development project order for the Satellite product
was signed in Third Quarter 2005. The Company expects
the revenue to be recognized over approximately 2 1/2
years. This revenue will replace other 2005
development projects that have been completed, for no
net change.
-- The Company expects a decline from 2005 of
approximately $10 million from legacy products that
are coming to the end of their life, for a decrease of
approximately $10 million.
-- The Company has estimated that revenue from the HAIPE
KIV-7M will range from approximately $240 to
approximately $300 million between 2006 and 2011. This
revenue will be all incremental since there is no
legacy product.
-- Gross margins are expected to be between 55% and 57%.
-- The Company expects a reduction of approximately $2.5
million of start up costs associated with the release
of the KIV-7M product which should result in improved
margins from this business line. The company is also
focused on a program to continue improving gross
margins over time.
About SafeNet, Inc. SafeNet is a global leader in information security. Founded more than 20 years ago, the company provides complete security utilizing its encryption The reversible transformation of data from the original (the plaintext) to a difficult-to-interpret format (the ciphertext) as a mechanism for protecting its confidentiality, integrity and sometimes its authenticity. Encryption uses an encryption algorithm and one or more encryption keys. technologies to protect communications, intellectual property and digital identities, and offers a full spectrum of products including hardware, software, and chips. ARM, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , the Departments of Defense and Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States , Adobe adobe (ədō`bē): see rammed earth. adobe Handmade sun-dried bricks formed from a mixture of heavy clay and straw found in arid regions. , Samsung, Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. , the U.S. Internal Revenue Service and scores of other customers entrust their security needs to SafeNet. For more information, visit www.safenet-inc.com. "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. " Statement under 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 The statements contained in this release, which are not historical facts, are 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. Important factors that could cause actual results to differ materially are included but are not limited to those listed in SafeNet's periodic reports and registration statements filed with the Securities and Exchange Commission. The Company assumes no obligation to update information concerning its expectations. Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : SafeNet is a registered trademark of SafeNet, Inc. |
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