Security Dynamics Reports Record Second Quarter Results.BEDFORD, Mass.--(BUSINESS WIRE)--July 15, 1997-- Second Quarter Net Income Up 91% and Revenue Up 70% Security Dynamics Technologies, 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 :SDTI SDTI Serial Data Transport Interface SDTI Security Dynamics Technologies, Inc. SDTI San Diego Trolley Inc. SDTI Serial Digital Transport Protocol ) today reported financial results for the second quarter of 1997 and the six months ended June 30, 1997. Revenue for the second quarter increased 70% to $29.7 million, from $17.4 million for the second quarter of 1996. Net income for the quarter was $5.5 million or $0.15 per share, compared to $2.9 million or $0.08 per share for the same period last year. The average number of common equivalent shares outstanding for the second quarters of 1997 and 1996 were 36.7 million and 36.6 million, respectively. Revenue for the six months ended June 30, 1997 was $56.1 million, a 74% increase over revenue of $32.3 million reported in the same period last year. Net income increased 103% to $10.2 million, or $0.28 per share, compared to $5.1 million, or $0.14 per share, in the first half of 1996. The average number of common equivalent shares outstanding for the first six months of 1997 and 1996 were 36.6 million and 36.4 million, respectively. In addition to announcing record second quarter results, Security Dynamics also announced separately today that the Company has acquired Sweden-based DynaSoft AB, a leading provider of products that provide access control to applications and system resources (1) In a computer system, system resources are the components that provide its inherent capabilities and contribute to its overall performance. System memory, cache memory, hard disk space, IRQs and DMA channels are examples. , and secure single sign-on An identification system that lets users log into multiple Web sites on the Internet with one username and password. Single sign-on systems are also used within an enterprise, enabling users to access all authorized resources in the local network using the same username and password. . "Our continued growth is the result of increased market demand for our products, and our commitment to delivering enterprise security solutions sought after by corporations today," said Charles R. Stuckey, Jr., chairman, president 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. of Security Dynamics. "The powerful combination of Security Dynamics' SecurID( products, RSA's cryptographic cryp·tog·ra·phy n. 1. The process or skill of communicating in or deciphering secret writings or ciphers. 2. Secret writing. cryp toolkits and now DynaSoft's application-level security solutions will let us deliver to customers best-of-class security solutions unmatched by any other security vendor." Security Dynamics is the leading provider of security solutions for remote access to enterprise networks. Security Dynamics' solutions help companies conduct business securely, protect corporate information assets and facilitate business-to-business electronic commerce. Security Dynamics' products employ patent-protected SecurID token technology and ACE/Server(R) software or hardware access control products to authenticate (1) To verify (guarantee) the identity of a person or company. To ensure that the individual or organization is really who it says it is. See authentication and digital certificate. (2) To verify (guarantee) that data has not been altered. the identity of users accessing networked or standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. computing computing - computer resources. With 1.8 million users in more than 2,000 companies, Security Dynamics is the world leader in two-factor user identification and authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. . RSA (1) (Rural Service Area) See MSA. (2) (Rivest-Shamir-Adleman) A highly secure cryptography method by RSA Security, Inc., Bedford, MA (www.rsa.com), a division of EMC Corporation since 2006. It uses a two-part key. Data Security Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Security Dynamics, is the world's brand name for cryptography, with more than 80 million copies of RSA encryption (cryptography, algorithm) RSA encryption - A public-key cryptosystem for both encryption and authentication, invented in 1977 by Ron Rivest, Adi Shamir, and Leonard Adleman. Its name comes from their initials. The RSA algorithm works as follows. and authentication technologies installed and in use worldwide. Security Dynamics and RSA can be found on the World Wide Web at http://www.securitydynamics.com/ and http://www.rsa.com/, respectively. -0-
(Tables Follow)
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996(a) 1997 1996(a)
Revenue $29,662 $17,422 $56,097 $32,284
Gross profit 23,461 13,774 43,856 25,122
Operating expenses:
Research and development 4,050 2,315 7,530 4,361
Marketing and selling 8,876 5,143 16,534 9,583
General and administrative 3,161 2,890 6,120 5,618
Total operating expenses 16,087 10,348 30,184 19,562
Operating income 7,374 3,426 13,672 5,560
Interest income 1,375 1,214 2,649 2,482
Provision for income taxes 3,248 1,755 6,090 2,990
Net income $ 5,501 $ 2,885 $ 10,231 $ 5,052
Net income per share $ 0.15 $ 0.08 $ 0.28 $ 0.14
Weighted average number of
common shares outstanding 36,629 36,604 36,581 36,398
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
1997 1996
Cash and marketable securities $108,265 $104,832
Accounts receivable 17,391 13,293
Total assets 151,600 139,942
Stockholders' equity 132,529 121,446
(a) Restated to reflect the Merger with RSA Data Security, Inc., in
July, 1996.
CONTACT: Security Dynamics Technologies, Inc. Editorial contacts: Financial analysts contact: Lisa Landa or Meg O'Sullivan Tadhg Cross 617-687-7311 or 617-687-7514 617-687-7502 llanda@securid.com tcross@securid.com mosullivan@securid.com |
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