Tokyo, Japan – July 27, 2006 - Trend Micro (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and Internet content security software and services, today announced that the forecast of financial results for the second quarter of the fiscal year ending December 31, 2006, which were announced on April 25, 2006, has been revised as set forth below:
(in millions of yen)
|Forecast previously published ( A )
|Revision made （B）
|Difference （B - A）
|Ratio of increase or decrease
The Company has changed deferred revenue recognition of its consumer business in both U.S. and Japan since the second quarter ending June 30th, and this change has been reflected retroactively since the beginning of fiscal year 2006. Mainly because of this, a total of around 1 billion yen of revenues for the first half of FY2006 would be transferred from Net Sales to Deferred revenues on the balance sheet. However, the costs associated with these sales will remain in the second quarter profit and loss account, resulting in a negative impact on the quarterly profit forecasts. The deferred revenue balance at the end of the quarter is expected to be 39.7 billion Yen.
As a result of this revision, compared to the previous forecast, there is a decrease of 0.5% in Net Sales and a decrease of 15.0% and 15.4% in Operating Income and Net Income, respectively.
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:
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.
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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