Trend Micro Announces Strong First Quarter Results
Enterprise business achieves nearly 30-percent growth globally, with US and
Europe leading revenue growth. Trend Micro net sales in yen increase by 12
percent year over year
Tokyo, Japan – April 26, 2007 – Trend Micro, Incorporated (TSE: 4704, NASDAQ:
TMIC), a leader in network antivirus and Internet content security software and
services, today announced earnings results for the first quarter 2007, including
record net sales for the first quarter 2007.
Trend Micro posted consolidated net sales of 23.25 billion Yen (or US $194.95
million, 119.27JPY = 1USD), and operating income and net income both performed
above expectations. The company posted operating income of 6.63 billion Yen (or
US $55.57 million) and net income of 4.35 billion Yen (or US $36.45 million) for
the quarter. These figures reflect 12 percent growth in net sales compared to
the same period a year ago.
The Company continued to see strong growth, led by a 20-percent year-over-year
revenue increase in North America and 14-percent in Europe, this was followed by
Asia Pacific and Japan at 10-percent and 6-percent growth respectively. Much of
the company’s worldwide growth was buoyed by strong sales in Enterprise
solutions, which experienced a 29-percent increase year-over-year.
Long-term growth was further supported with the introduction of a number of new
solutions and services, and ground-breaking, new Total Web Threat Protection
technology. Trend Micro launched a new messaging security service for enterprise
customers, InterScan Messaging Hosted Service. The Company also launched the
beta version of a new consumer web-reputation service called TrendProtect, in
March 2007 and announced the acquisition of HijackThis, a popular freeware anti-spyware
program now available on TrendSecure that enables technically savvy users to
identify and remove unwanted and malicious programs.
“We were very pleased with our achievements in the first quarter of 2007, and
particularly note the introduction of our Total Web Threat Protection technology
which helps advance the preventative security available to customers against
pernicious web threats, today and tomorrow,” said Eva Chen, CEO of Trend Micro.
“We delivered a number of new messaging-protection, small-medium business and
mobile device solutions for both businesses and consumers, and the acquisition
of HijackThis extends our ability to provide value-add services to end-users
everywhere. Our steadfast focus on content security continues to support our
potential for growth now and in the future.”
Based on information currently available to the company, consolidated net sales
for the second quarter ending June 30, 2007 is expected to be 22.5 billion Yen
(or US $192.31 million, based on an exchange rate of 117JPY = 1USD). Operating
income and net income are expected to be 5.3 billion Yen (or US $45.30 million)
and 3.0 billion Yen (or US $25.64 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
Corporate
• In March 2007, Trend Micro announced state-of-the-art Web threat protection
technology. New in-the-cloud Trend Micro Web Reputation technology is a key new
innovation being added to the Trend Micro multi-layered approach for dealing
with evolving multi-component Web threats that take advantage of the interactive
nature of the Internet. Total Web Threat Protection is a key component within
the Trend Micro Secure Content & Threat Management security solutions portfolio.
• Following closely the certification awarded to Trend Micro consumer products
in the previous quarter, Trend Micro Client Server Messaging Security 3.6 client
was awarded Microsoft Vista logo certification in March 2007.
• New customers in the first quarter included:
In the United States and Canada – BJC Healthcare. In Europe - RDC DATACENTRUM,
ICT Center Justice department, and in China – TCL Group, DongFeng Automobile
Co., LTD., China Mobile & Telecom Company FUJIAN Co., Ltd, China
NETCOM(Group)Company Limited Beijing Branch and China Mobile Company HEBEI
Branch
Awards
• At the beginning of March 2007, Channel Reseller News in North America
announced the winners of its CRN 2007 Channel Champions. Trend Micro earned a
Channel Champs award for Program & Support in the Client Security Software
category.
• At the end of March 2007, TechTarget's Information Security Magazine and
SearchSecurity.com announced that Trend Micro AntiVirus plus AntiSpyware had
been awarded the Information Security Readers Choice Silver Award in the
Antimalware category.
Patents
Trend Micro was awarded the following patents in the first quarter 2007:
• U.S. Patent No. 7,188,369, entitled " System and Method Having an Antivirus
Virtual Scanning Processor with Plug-in Functionalities" covers a computer
processor emulator that enables virus detection instructions to be safely
performed in a virtual environment without exposing virus infection to the host
computer. According to a specific example of the patented technology, the
virtual processor allows polymorphic viruses and compressed viruses to be safely
decrypted and uncompressed, respectively, eliminating the need to determine the
actual encryption or compression algorithm. This is particularly advantageous as
viruses use encryption and compression schemes that are new and more complex.
Product
Trend Micro introduced the following products in the first quarter 2007:
• Trend Micro InterScan Messaging Hosted Service, Trend Micro Messaging Security
Suite and Trend Micro InterScan Messaging Security Appliance, designed to
provide enterprises a choice of solution form factor and to extend the security
already available to protect corporate email as messaging threats evolve.
• Trend Micro ScanMail for Exchange – the latest version of ScanMail for
Exchange continues to provide businesses proven protection against a multitude
of email-borne threats. The solution now also includes technology to protect
against zero-day attacks, image spam, and for improved web-threat security it
includes dedicated anti-spyware as well.
• Trend Micro Worry-Free Security for small and medium-sized businesses –
updates to Trend Micro Worry-Free security solutions include the addition of
spyware and rootkit protection, further enhancing the comprehensive,
single-installation security products already available for smaller
organizations.
• TrendProtect and HijackThis – The acquisition of popular freeware anti-spyware
tool HijackThis complemented the launch of the beta version of TrendProtect, a
new web-reputation service for consumers available at www.trendsecure.com.
• Trend Micro Mobile Security 3.0 - The release of the latest version of Trend
Micro Mobile Security protects users of the latest Nokia Smartphones against
mobile malware while protecting against unwanted intrusions and data leakage
through new firewall and intrusion detection technologies.
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.
About Trend Micro Incorporated.
Trend Micro Incorporated is a pioneer in secure content and threat management.
Founded in 1988, Trend Micro provides individuals and organizations of all sizes
with award-winning security software, hardware and services. With headquarters
in Tokyo and operations in more than 30 countries, Trend Micro solutions are
sold through corporate and value-added resellers and service providers
worldwide. For additional information and evaluation copies of Trend Micro
products and services, visit our Web site at
www.trendmicro.com .
1. Consolidated Unaudited Results of Operations for First Quarter Ending March 31, 2007 (US GAAP)
*Figures for the First quarter of 2007 and 2006 are not audited.
(1) Consolidated Results of Operations
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(2) Segment information
Net sales to third parties
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Deferred Revenue
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(3) Basis of consolidation
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(4) Increase (Decrease) of major assets, liabilities and shareholders’ equity
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2.Projected consolidated earnings (US GAAP)
Projected earnings for the next quarter (April 1, 2007 through June 30, 2007)
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(Note) Since the business environment surrounding Trend Micro Group tends to fluctuate in the short run, it is difficult to make the highly reliable projection figures on a yearly basis. We, therefore, decided to announce the earnings on a quarterly basis in the fiscal year ending in December 2007 as well as earnings projection of the succeeding quarter.
If we found through our calculation conducted from time to time that the net sales fluctuate from the most recent quarterly projection by more than 10%, or operating income or net income fluctuates by more than 30%, we will announce the revision of the earnings projection.
About Trend Micro:
Trend Micro Incorporated (TSE: 4704), a global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years' experience, we deliver top-ranked client, server and cloud-based security that fits our customers' and partners' needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the Trend Micro™ Smart Protection Network™ cloud security infrastructure, our industry-leading cloud-computing security technology, products and services stop threats where they emerge, on the Internet, and are supported by 1,000+ threat intelligence experts around the globe.
Additional information about Trend Micro Incorporated and the products and services are available at Trend Micro.com This Trend Micro news release and other announcements are available at http://trendmicro.mediaroom.com/ and as part of an RSS feed at www.trendmicro.com/rss Or follow our news on Twitter at @TrendMicro.
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