Trend Micro Reports First Quarter Results
Tokyo, Japan – May 12, 2009
– Trend Micro Incorporated (TSE: 4704), a global leader in Internet content security, announced earnings results for the first quarter 2009.
For the first quarter, Trend Micro posted consolidated net sales of 22,915 million Yen (or US $244 million, 93.79 JPY = 1USD). The company posted operating income of 7,028 million Yen (or US $74 million) and net income of 4,821 million Yen (or US $51 million) for the quarter. These figures reflect a 5 percent increase in net income compared to the same period a year ago.
Japan region continued to experience flat sales growth as 0 percent compared with the same period last year. Even though sales achieved year-by-year healthy growth in North America, it will eventually be negatively affected by the Japanese Yen by a 4 percent sales revenue decrease. Also, in Europe, the Asia Pacific, and Latin America regions, sales growth ratio were double digit decreased compared to the same period last year mainly due to a foreign currency impact.
“We made some important strategic alliances this quarter that further our ability to bring to market innovative products and solutions,” said Eva Chen, CEO. “The combination of the BigFix Platform with Trend Micro endpoint security functions positions us not only to capture market share from some of our biggest competitors, but to set a new standard for endpoint protection. We also teamed with Cisco to deliver the Home Network Defender, one of the first Internet software security and parental controls solution to be embedded on a wireless home router. Moving forward, we will continue to build upon these relationships to expand our security product offerings.”
Based on information currently available to the company, consolidated net sales for the second quarter ending June 30, 2009 is expected to be 23,800 million Yen (or US $250 million, based on an exchange rate of 95 JPY = 1USD). Operating income and net income are expected to be 7,200 million Yen (or US $75 million) and 4,600 million Yen (or US $48 million), respectively.
Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.
First Quarter Business Highlights
- In January, Trend Micro teamed with BigFix to deliver a comprehensive and modular Trend Micro endpoint security management solution that scales to the requirements of very large enterprises with more than 10,000 endpoints. The first in a series of new endpoint modules available is the Trend Micro Web Protection Module, designed to proactively protect endpoints against Web threats and provide security enhancements to the BigFix platform.
- In February, Trend Micro and Cisco helped revolutionize home internet security with the announcement of Home Network Defender -- Trend Micro’s Internet security software integrated into Linksys by Cisco wireless routers.
- This spring, Trend Micro launched its first Russian office in Moscow. With the third largest IT market in EMEA, Russia has been within Trend Micro’s long-term strategic vision in taking the Trend Micro Smart Protection Network to a new market with unmet security needs.
Awards and Recognition for Q1 2009
- For the fifth consecutive year, Trend Micro was named first place in the software category by Nikkei Solution Business magazine. This honor was the result of the magazine’s “partner satisfaction survey,” in which Trend Micro placed first in 11 out of 12 categories.
- Trend Micro Japan won the Best Security Software 2009 award by Business Computer News, beating out seven-time consecutive winner Symantec.
- Trend Micro was recognized as a global leader in CEM by the Customer Management Forum during the Customer Experience Awards 2008 in Shanghai. Trend Micro was the only company that was awarded two awards during the ceremony, of the seven awards given in total. This honor recognizes Trend Micro’s strategy, mission and vision in furthering its “techie friend” experience with and for customers and partners.
- Trend Micro was awarded the BYTE 2009 Editors’ Choice Award in EMEA.
Products and Innovation
- Trend Micro Worry-Free™ Business Security was named eWeek Channel Insider's 'Product of the Year' for host/client security.
- In a comparative test of ten anti-spam products, both of the Trend Micro InterScan™ Messaging Hosted Security and Trend Micro InterScan™ Messaging Security Suite received the highest anti-spam catch rates.
- SC Magazine gave Trend Micro InterScan Web Security four out of five stars in an independent review, stating that the product was “easy to set up and use [and] provides protection from Web-based threats in minutes.”
- Information Security Magazine gave a positive review of Trend Micro Worry-Free Business Security 5.0, saying that “WFBS is an easy and affordable way for smaller organization s to cover all security bases.”
- VNUNet.com, which reviewed Trend Micro Internet Security Pro 2009, said the product “is an impressive package…”
- InfoWorld conducted a comparative review of OfficeScan and concluded that it was “a good, all-around package for securing Windows-based clients.”
- Channel Insider reviewed Trend Micro’s Home Network Defender, noting “the product is clearly good enough to do what it is meant to do and it is simple enough for the neophyte PC user to understand.”
- Channel Web recommended Worry-Free Business Security Advanced as one of “7 Hot Security and Storage Products” its Test Center editors think can make a difference.
- InfoWorld, in a comparative review of email security services, concludes that “Trend Micro InterScan Messaging Hosted Security provides great performance and a very fine feature set at a very low price and with good functionality.”
- PC World conducted an Editor’s Review of HouseCall, concluding that “HouseCall is a great resource for anyone who suspects that their computer woes may be related to malicious files or security vulnerabilities--or for those who just want to double-check that their installed security program is doing its job.”
New products Trend Micro introduced during Q1 2009 include the following:
Trend Micro was awarded the following patents in Q1 2009:
Patent No. US 7,496,960
“Tracking and Reporting of Computer Virus Information.”
New customers for Q1 2009:
-- Zhengzhou Yutong Group Co., Ltd. ( Yutong Group) – Manufactory (Bus making); Beijing Yanjing Beer Group Corporation; China CITIC Bank; China Tobacco Hunan Industrial Co., Ltd.; Baosteel Group Corporation (Baosteel)
-- Pamapersada Nusantara
– Aloysius; Norgren GmbH
-- Kennewick School District; Carbon Lehigh Intermediate Unit
Notice Regarding Forward-looking Statements
Certain statements that we make in this release are forward-looking statements. These forward-looking statements are based upon management’s current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:
- Difficulties in addressing new virus and other computer security problems
- Timing of new product introductions and lack of market acceptance for our new products
- The level of continuing demand for, and timing of sales of, our existing products
- Rapid technological change within the antivirus software industry
- Changes in customer needs for antivirus software
- Existing products and new product introductions by our competitors and the pricing of those products
- Declining prices for products and services
- The effect of future acquisitions on our financial condition and results of operations
- The effect of adverse economic trends on our principal markets
- The effect of foreign exchange fluctuations on our results of operations
* An increase in the incidence of product returns
- The potential lack of attractive investment targets and
- Difficulties in successfully executing our investment strategy
We assume no obligation to update any forward-looking statements. For more details regarding risk factors relating to our future performance, please refer to our filings with the U.S. Securities and Exchange Commission.