Tokyo, Japan – February 14, 2008 – Trend Micro Incorporated (TSE: 4704), a global leader in Internet content security, earnings results for the fourth quarter and consolidated revenue for fiscal year 2007, ending December 31, 2007.
For the fourth quarter, Trend Micro posted a record 26,213 million Yen (or U.S. $231 million, 113.11JPY=1USD) in net sales, representing 13 percent growth in Yen year-over-year and 4 percent growth over the third quarter in Yen. Operating income for the quarter was 8,300 million Yen (or U.S. $73 million) and net income was 5,227 million Yen (or U.S. $46 million).
For 2007, Trend Micro posted record consolidated net sales of 99,805 million Yen (or U.S. $848 million, 117.58JPY=1USD), representing an annual growth rate of 17 percent. The company also reported operating income of 33,476 million Yen (or U.S. $284 million) and net income of 23,561 million Yen (or U.S. $200 million). Revenues from products and services sold to enterprise, mid-sized, and small business customers worldwide comprised 74 percent of 2007 revenues; revenue from consumer products comprised the remaining 26 percent.
In the fourth quarter, Trend Micro continued to experience worldwide growth. In North America sales grew 21percent annually while Europe saw a growth of 14 percent, year on year. In the Japan and Asia-Pacific regions, annual sales increased 8 and 12 percent, respectively.
“Trend Micro is a technology company that succeeds because of its employees and I am proud of our people who have led us to this year’s past achievements,” said Eva Chen, CEO. “Our customizable, multi-layered approach for inbound and outbound content security was enhanced through the introduction of products with Trend Micro Web reputation and in-the-cloud security Software-as-a-Service. The Provilla acquisition launched us into the data leak prevention and education. For 2008, Trend Micro will continue to battle the changing threat landscape with a service-oriented culture and a solution set whose main focus will always be the needs of our customers.”
Based on information currently available to the company, consolidated net sales for the first quarter ending March 31, 2008, is expected to be 25,100 million Yen (or U.S. $239million, based on an exchange rate of 105 JPY = 1USD). Operating income and net income are expected to be 6,600 million Yen (or U.S. $62 million) and 4,100 million Yen (or U.S. $39 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.
The acquisition of Provilla, a data leak prevention company, extends Trend Micro’s content security offering into the global DLP market with innovative new technology and products. With this acquisition, Trend Micro also announced its first data leak prevention solution: Trend Micro™ LeakProof™ 3.0. The acquisition of HijackThis, a popular freeware anti-spyware tool, complemented the launch of the beta version of TrendProtect, a new Web reputation service for consumers available at www.trendsecure.com. Since the introduction of the AnalyzeThis feature in HijackThis in March 2007, Trend Micro has analyzed over 1.7 million HijackThis logs. This ongoing analysis provides valuable information about new Web threats and the extent of malware infection in Windows PCs. Key components introduced to the Trend Micro Secure Content & Threat Management security solutions portfolio include: Trend Micro Web reputation and in-the-cloud technologies, as well as Software as a Service.
New products Trend Micro introduced during 2007 included the following:
Trend Micro Mobile Security 5.0 protects enterprise data on mobile devices from loss or theft. Newly-added data encryption and authentication, along with firewall, intrusion detection and malware protection are all managed by a single console.
In 2007, Trend Micro was awarded the following patents:
In APAC – The Revenue Department of Thailand and Hong Kong Broadband Limited.
In China - Faw-VW, Nixgxia mobile and Zhejiang tobacco.
In EMEA - ATOS Origin, BT Global Services and Sofinco.
In NABU - Firstrade Securities, Inc., Spirit Telecom and Alliance for College-Ready Public Schools.
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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Mr. Mahendra Negi
Chief Operating Officer / Chief Financial Officer / IR Officer