Sales grow by 70% and operating income rises by 272% in Q2 2002
Tokyo, Japan - July 30, 2002 - Trend Micro Inc (TSE: 4704; Nasdaq: TMIC), a worldwide leader in network antivirus and Internet content security software and services, today reported results in Japanese GAAP for the second quarter 2002, ended June 30, 2002. Trend Micro posted consolidated net sales of 10.8 billion yen, (or US $ 92 million¹ ) and operating income of 3.3 billion yen (or US $28 million). The figures reflect gains of 70% in sales and 272% in operating income compared with the same period a year ago. Net sales growth was 10% over the previous (first) quarter while operating income also increased 10%².
All regions experienced strong growth in revenue compared to the same quarter in 2001; sales in Japan increased 146% year over year and 16% sequentially. Europe also experienced a very strong quarter showing 71% growth year over year 13% sequentially.
Steve Chang, Chairman and CEO of Trend Micro said "We are pleased with another strong performance in the second quarter and to have again grown our antivirus business faster than the rest of the industry. With this quarter’s availability of the first offerings of our Enterprise Protection Strategy we are just beginning the next stage of our growth. As our customers begin evaluating and utilizing these next generation capabilities we expect continued strong growth in our enterprise business. And with the rapid penetration of consumer broadband we see continued strong growth in our consumer segment driven by VirusBuster and our new GateLock product family.”
All major product lines grew strongly both year-to-year and quarter-to-quarter. Consumer product revenue grew 48% quarter-to-quarter and 92% year-to-year. Enterprise antivirus product revenue grew 66% year-to-year and 4% quarter-to-quarter. Enterprise antivirus product revenue represented 80% of Trend Micro’s net sales in Q2³.
Consolidated net sales for the third quarter ending September are expected to be between 9.8 and 10.3 billion Yen. Ordinary income is expected to be between 2.25 and 2.55 billion Yen.
| 1 | $1 US = 117 Japanese Yen |
| 2 | Net Income for Q2’02 was 1.8 Billion Yen but comparison to prior year is not meaningful as Q2’01 Net Income was negative due to goodwill amortization. |
| 3 | Management accounting numbers. Financial filings may be slightly different. |
The statements included in this release contain "forward-looking statements” within the meaning of the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding our expectations about our earnings for the third quarter ending September 30, 2002. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:
We assume no obligation to update any forward-looking statements. For more details regarding risk factors relating to our future performance, please refer to our filings with the SEC including our annual report on Form 20-F which was filed on July 1,2002.
The following tables show key financial information for the six months ended June 30, 2002 as announced by Trend Micro in Japan.
Table 1 - Consolidated Results of Operation
| From Jan 1, 2002 to Jun 30 | Change | ||||
| 2002 | 2001 | ||||
| Millions of yen, except share data | Millions of US$ except share data | Millions of yen | Millions of US$ | ||
| Net sales | 20,507 | 175 | 12,939 | 111 | 58% |
| Operating Income | 6,356 | 54 | 2,898 | 25 | 119% |
| Ordinary Income | 6,271 | 54 | 3,004 | 26 | 109% |
| Net income | 3,517 | 30 | -1,376 | -12 | - |
| Net income per share (basic) | 26.62 yen | $0.228 | - | - | - |
| Net income per share (diluted) | 26.50 yen | $0.226 | - | - | - |
Table 2 - Consolidated Financial Position
| As of July 30 | ||||
| 2002 | 2001 | |||
| Millions of yen, except share data | Millions of US$, except share data | Millions of yen, except share data | Millions of US$, except share data | |
| Total assets | 69,667 | 595 | 53,413 | 457 |
| Shareholder's equity | 34,729 | 297 | 26,914 | 230 |
| Shareholder's equity ratio | 49.8% | 50.4% | ||
| Shareholder's equity per share | 262.27 yen | $2.242 | 204.39 yen | $1.747 |
Table 3 - Consolidated Cash Flow
| From Jan 1, 2002 to Jun 30 | ||||
| 2002 | 2001 | |||
| Millions of yen | Millions of US$ | Millions of yen | Millions of US$ | |
| Cash flows from operating activities | 6,787 | 58 | 4,650 | 40 |
| Cash flows from investing activities | -1,415 | -12 | -1,363 | -12 |
| Cash flows from financing activities | 544 | 5 | 6,503 | 56 |
| Ending balance of cash and cash equivalent | 45,990 | 393 | 34,553 | 295 |
Mr. Mahendra Negi
Chief Operating Officer / Chief Financial Officer / IR Officer
Phone: +813-5334-4899
Fax: +813-5334-4874
ir@trendmicro.co.jp
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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