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2001 Finance Info

Trend Micro Announces Record Third Quarter Results

Sales climb 42% YoY and ordinary income rises 22% in 3Q 2001

For Immediate Release

 

Tokyo, Japan – October 25, 2001 – Trend Micro Inc. (TSE: 4704; Nasdaq: TMIC), a worldwide leader in antivirus and Internet content security solutions, reported consolidated sales of 7,548 million yen (63 million US $) and ordinary income of 2,305 million yen (19 million US $) for the third quarter of fiscal 2001, ended September 30, 2001. The figures reflect gains of 41.6% in sales and 22.1% in ordinary income compared with the same period a year ago. This increase was driven by solid, well-balanced growth in all three major markets: Japan, North America, and Europe. Europe led all regions with rapid sales growth of 85% over 3Q 2000. Japan remained the largest market, with sales rising 32% to 2,921 million yen from 2,217 million yen in 2000 Major account wins in Q3 included IBM, Sprint, Sony HSBC, US Deptt of Justice and Transportation, and City of SanFrancisco.

If the results were not adjusted in accordance with a new revenue recognition policy, sales would have shown annual growth of 49.6% to 7,973 million yen (66US $), and ordinary income would have risen 44.6% to 2,730 million yen (22million US $) in the quarter.

(Exchange rate 1US$= 119.40 JPY)

Further details can be obtained at http://www.trendmicro.com/us/about-us/investor-relations/index.html

Third Quarter FY 2001 (July 1 through September 30, 2001) unaudited

 

Consolidated Unaudited Results of Operations for Three Quarters Ending September 30, 2001

  1. Consolidated Results of Operations
 

2001 (Note)2

2000 (Note)1,2

Current third quarter

Growth Rate

Year-to-date results

Growth Rate

Previous third quarter

Year-to-date results

From July 1, 2001

From January 1, 2001

From July 1, 2000

From January 1, 2000

To September 30,2001

To September 30,2001

To September 30,2000

To September 30,2000

 

Millions of yen

%

Millions of yen

%

Millions of yen

Millions of yen

Sales

7,548

41.6

20,488

37.2

5,330

14,930

Cost of sales

370

82.3

1,102

36.6

203

807

Gross profit

7,178

40.0

19,385

37.3

5,126

14,123

Selling, general and

administrative expenses

4,512

37.2

13,820

49.1

3,288

9,268

Operating income

2,665

45.0

5,564

14.6

1,838

4,854

Non-operating income

30

-84.2

559

48.7

190

376

Non-operating expense

390

180.6

814

120.6

139

369

Ordinary income

2,305

22.1

5,309

9.2

1,888

4,861

Unusual gains

-

-

-

-100.0

-

1,033

Unusual losses

17

-

5,145

171,400.0

-

3

Income before taxes

2,288

21.2

163

-97.2

1,888

5,890

<Note> 1. Change in accounting principle: Please] see "Note on Change in Accounting Principle" below.

(2) Geographic segment information

Sales to third parties

 

2001 (Note)2

2000 (Note)1,2

Current third quarter

Year-to-date results

Previous third quarter

Year-to-date results

From July 1, 2001

From January 1, 2001

From July 1, 2000

From January 1, 2000

To September 30,2001

To September 30,2001

To September 30,2000

To September 30,2000

 

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Japan

2,921

7,408

2,217

5,873

North America

2,197

6,215

1,522

4,300

Taiwan

443

1,326

500

1,332

Europe

1,516

4,312

816

2,686

Others

470

1,224

274

737

Total

7,548

20,488

5,334

14,930

<Note>

1. Classification of countries and regions is based on geographical proximity.

 

2. Classification of countries and regions into each geographic segment.

North America: U.S.A.

Europe : Italy, Germany, France, UK

Others : Korea, Australia, Brazil,Hong Kong, Malaysia, Mexico, New Zealand, China

(3) Affiliated companies:

Number of consolidated subsidiaries: 18

Number of unconsolidated subsidiaries: 0

Financial data for the third quarter of FY 2000 is provided solely for comparison purposes, as the Company did not prepare quarterly earnings statements last year. Moreover, the figures for Q1 FY 2001 and Q1 FY 2000 have not been audited by the Company's certified public accountants or independent auditors, and the financial results described in this release were prepared in accordance with Japanese generally accepted accounting principles (GAAP).

Note on Change in Accounting Principle

Until the end of FY 2000, the Company and Trend Micro Incorporated (Taiwan) booked revenue for Premium Support and other post-contract customer support services at the beginning of the support period. Effective from FY 2001, the method of recognizing this revenue recognition has been changed and sales revenues from customer support are deferred over the relevant support period.

The table below shows the year-on-year growth after restating the 2001 third quarter numbers to the revenue recognition policy in use during the corresponding quarter of Fiscal 2000.

 

2001 (Note) ,2

2000 (Note) 1,2

Current third quarter

Growth Rate

Year-to-date results

Growth Rate

Previous third quarter

Year-to-date results

From July 1, 2001

From January 1, 2001

From July 1, 2000

From January 1, 2000

To September 30,2001

To September 30,2001

To September 30,2000

To September 30,2000

 

Millions of yen

%

Millions of yen

%

Millions of yen

Millions of yen

Sales

7,973

49.6

21,405

43.4

5,330

14,930

Ordinary income

2,730

44.6

6,227

28.1

1,888

4,861

Income before taxes

2,713

43.7

4,090

-30.6

1,888

5,890

(Note) 1. Quarterly financial information was not disclosed in 2000. The figures for the third quarter of

Fiscal Year 2000 in above table are prepared for management purpose and disclosed for

reference only.

2. The figures for the third quarter of Fiscal Year 2001 and Fiscal Year 2000 are not audited.

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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