Tokyo, Japan – February 4th, 2003 - Trend Micro Inc (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and Internet content security software and services, today reported results in Japanese GAAP for the fourth quarter and fiscal year ending December 31, 2002.
Net sales for 2002 reached a record high of 42.9 8 billion yen (or US $364 million) in 2002, up 37% from 2001. Operating income was 13.8 8 billion yen (or US $11 8 million), up 46% from 2001. Net income was 7.89 billion yen (or US $6 7 million), up 226% from 2001. All major product lines grew during 2002, with enterprise products representing 8 1 % of revenues.
"We are very pleased that we have had yet another year of robust growth and that we continue to grow market share in the enterprise segment worldwide," said Steve Chang, Chairman and CEO, Trend Micro. "This year we delivered our Enterprise Protection Strategy, a NIMDA-prevention architecture, along with many new services and products to support this and we demonstrated the appropriateness of the best-of-breed approach by forming key alliances with other security market leaders. Perhaps most satisfying is that we were able to achieve record profit growth while at the same time investing heavily in channels, products and programs that will enable our growth in coming years."
Consolidated net sales for the first quarter ending March 2003 are expected to be 11. 0 billion yen (or US$ 93 million). O perating income is expected to be 3. 1 billion yen (or US$ 26 million). Net income is expected to be 1.8 billion Yen (or US$ 15 million).
Trend Micro also resolved to change its dividend policy and will begin paying dividends beginning in fiscal year 2003. Shareholders of record at the end of December 2003 have the right to receive dividends. The company plans to set 20 percent of consolidated net income as a base for the dividends. The company will decide the dividends per share in consideration of its stock repurchase plan and the retained earnings available for dividends within the limits set by the Japanese Commercial Code.
The company also won noteworthy service accolades, including the Inaugural "Service Excellence Award" from Accenture and Commonwealth Magazine in Taiwan . In December, Trend Micro's US Premium Support organization earned the prestigious Support Center Practices (SCP) Certification, which recognized the company for its enterprise support excellence. Trend Micro is the first software vendor to receive such recognition.
The following tables show key financial information for the fiscal year ended December 31, 2002 as announced by Trend Micro in Japan.
($1US = 118 Japanese Yen)
1. Consolidated Results of Operations
|From Jan 1 to Dec 31,||Change|
|Millions of yen , except share data||Millions of US$ , except share data||Millions of yen||Millions of US$|
|Net income per share (basic)||59.74 yen||$ 0.51||18.40 yen||$ 0.16||-|
|Net income per share (diluted)||59.57 yen||$ 0.50||18.23 yen||$ 0.15||-|
2. Consolidated Financial Position
|As of Dec 31 ,100%|
|Millions of yen , except share data||Millions of US$ , except share data||Millions of yen , except share data||Millions of US$ , except share data|
|Shareholders' equity ratio||50%||47%|
|Shareholders' equity per share||281.62 yen||$ 2.39||234.02 yen||$ 1.98|
3. Consolidated Cash Flows
|From Jan 1 to Dec 31,|
|Millions of yen||Millions of US$||Millions of yen||Millions of US$|
|Cash flows from operating activities||15,217||129||12,563||106|
|Cash flows from investing activities||-3,172||-27||-2,918||-25|
|Cash flows from financing activities||-4,482||-38||5,460||46|
|Ending balance of cash and cash equivalent||47,829||405||40,782||346|
S tatements included in this release contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include , among others, statements regarding our expectations about future dividend payments. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:
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 SEC , including our annual report on Form 20-F which was filed on July 1,2002.
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.
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