Tokyo, Japan – April 28, 2008 – Trend Micro Incorporated (TSE: 4704), a global leader in Internet content security, announced earnings results for the first quarter 2008.
Trend Micro posted consolidated net sales of 25,604 million Yen (or US $244 million, 104.88JPY = 1USD). The company posted operating income of 8,338 million Yen (or US $79 million) and net income of 4,594 million Yen (or US $43 million) for the quarter. These figures reflect 10 percent growth in net sales compared to the same period a year ago.
Despite global economic uncertainties, the company continued to see growth this quarter with positive sales growth in all regions that exceeded expectations. Sales revenues were led by a 15 percent sales revenue increase in Japan and 13 percent in Asia Pacific. This was followed by North America and Europe at 7 percent and 6 percent growth respectively. In the Latin America regions, sales increased by 2 percent.
“This quarter’s accomplishments were driven, in part, by strong organic growth supplemented by targeted business development activities and partnerships such as our acquisition of Identum for email encryption, and our alliances with companies like Linksys and Crossbeam to create customizable content-security solutions,” said Eva Chen, CEO. “Our focus for next quarter, as it has been for a while, will be creating in-the-cloud security solutions that are faster, smarter and lighter for our customers.”
Based on information currently available to the company, consolidated net sales for the second quarter ending June 30, 2008 is expected to be 25,700 million Yen (or US $257 million, based on an exchange rate of 100JPY = 1USD). Operating income and net income are expected to be 7,100 million Yen (or US $71 million) and 4,100 million Yen (or US $41 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 February, Trend Micro announced the acquisition of UK-based Identum, a developer of email encryption technology. Under its new name, Trend Micro Encryption Group, the company is working to integrate its encryption technology into existing Trend Micro solutions.
- In February, Trend Micro endorsed VMsafe Technology and announced plans to build interoperable security solutions. The VMsafe APIs allow vendors to develop advanced security products that combat the latest generation of malware.
- In March, Trend Micro and Linksys announced the integration of Trend Micro™ ProtectLink™ Gateway Security into select Linksys routers for small businesses.
- At the end of March, Crossbeam Systems and Trend Micro announced the Next Generation Content Gateway Solution for Messaging Security.
- Trend Micro was 1 out of 3 security companies that received the ProtectStar™ Award, given by ProtectStar Inc., an independent and globally operating company for IT and communication security.
- Trend Micro was named 2008 CRN Channel Champion, honored as the Top Vendor in both the Client Security Software and Network Security Software categories.
- Trend Micro was ranked first place for the fourth consecutive year in the Partner Satisfaction Survey conducted by Nikkei Solution Business.
- Trend Micro was listed on Cape Horn Strategies 2007 Sustained Honor Roll for its sustained profitable performance in the software industry.
- Trend Micro was ranked #11 within the total ranking of Japan’s List of 2007 Top Companies based on the Private Sector Multi-Evaluation System developed by Nikkei Newspaper and Nikkei Research.
New customers in the fourth quarter include:
In Japan – Toshiba Corporation.
In EMEA – Eutron, Fondazione Cinema Per Roma, Sun Microsystems, Berner Group and ALPINE Bau.
In NABU – Del Monte Fresh Produce Company, Las Vegas Valley Water District and Build-A-Bear Workshop®.
Product Awards and Recognition
- Trend Micro Internet Security 2008, received top scores in a comparison testing of 28 other antivirus products conducted by a leading, independent testing organization. AV-Test.org (www.av-test.org).
- Trend Micro Network VirusWall Enforcer and Mobile Security 5.0 received Bronze awards from SearchNetworking.com 2008 Product Leadership Awards.
- Trend Micro InterScan Web Security Appliance 3.1 was given 5 out of 5 stars and “Best Buy” status in SC Magazine’s Best Buy Review.
- Trend Micro Internet Security 2008 was ranked #2 by ProtectStar TestLab in a comparison test of 13 other security products.
Products and Innovation
New products Trend Micro introduced during the first quarter included the following:
- Trend Micro Message Archiver, announced in March, helps customers securely store and quickly access archived email; the product includes rapid e-discovery, compliance, tamper-proof architecture and “privacy guard.”
- Trend Micro Control Manager 5.0, also announced in March, is a unique Web-based, mutli-tier management console that offers increased flexibility, ease-of-use and customization.
- Trend Micro announced version updates for its 2008 consumer products: Trend Micro™ Internet Security Pro, Trend Micro™ Internet Security 2008 and Trend Micro™ AntiVirus plus AntiSpyware 2008. The latest versions take full advantage of Windows Vista™ Service Pack 1 (SP1).
- Trend Micro™ ScanMail™ for Exchange was found by an independent research firm to have the lowest total cost of ownership and save businesses the most time and money.
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:
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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