Strong consumer sales combined with higher-than-expected operating income
Tokyo, Japan – August 12, 2008 – Trend Micro Incorporated (TSE: 4704), a global leader in Internet content security, announced earnings results for the second quarter 2008.
Trend Micro posted consolidated net sales of 26,105 million Yen (or US $249 million, 104.72 JPY = 1USD). The company posted operating income of 8,552 million Yen (or US $81 million) and net income of 3,936 million Yen (or US $37 million) for the quarter. These figures reflect a 4 percent growth in net sales compared to the same period a year ago.
Sales revenues were led by a 9 percent sales revenue increase in Europe. This was followed by a 7 percent sales revenue increase in Japan. Despite strong Japanese yen, North America experienced a 4 percent revenue growth. In Asia Pacific, sales decreased by 16 percent. In the Latin America regions, sales decreased by 5 percent.
“It has been an exciting quarter for us -- we recently hosted our first analyst event in New York City where we announced our vision for fighting Web threats with drastically new, in-the-cloud methods through the Trend Micro Smart Protection Network,” said Eva Chen, CEO. “Security vendors need to evolve alongside a changing threat landscape and Trend Micro is taking the lead in this evolution.”
Based on information currently available to the company, consolidated net sales for the third quarter ending September 30, 2008 is expected to be 26,400 million Yen (or US $251 million, based on an exchange rate of 105 JPY = 1USD). Operating income and net income are expected to be 7,600 million Yen (or US $72 million) and 4,900 million Yen (or US $46 million), respectively. Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in U.S. Dollar comparisons owing to fluctuations in currency conversion rates.
During the annual RSA Conference in April, Trend Micro unveiled the TrendTracker, the company’s first Internet pollution tracker that counts Web attacks and preventions; demonstrated a prototype technology that secures virtualized environments; introduced the Trend MicroWeb Protection Add-On intended to not only catch malware at the earliest possible point of infection (in-the-cloud), but also to provide bot-behavior analysis that helps prevent PCs from being infected with malicious software and then taken over by an attacker; and announced an integration of Trend Micro’s Web security solutions into Cisco Integrated Services Routers.
In June, Trend Micro launched an entire new line of Worry-Free™ Security solutions for the SMB market that includes: Worry Free Business Security 5.0 in Standard and Advanced; and Trend Micro SecureSite™, a Web-application vulnerability monitoring service designed to protect small business online retailers from cybercrime.
Also in June, Trend Micro held its first analyst event in New York City and announced the Trend Micro Smart Protection Network, a next-generation cloud-client content security infrastructure designed to protect customers from Web threats.
The company introduced Trend Micro Enterprise Security, a new strategy to minimize time to protect against Web threats and offer ease of security management. In addition to introducing future products and solutions to be powered by the Smart Protection Network, the enterprise business unit also unveiled its gateway appliance strategy with a move towards software virtual appliances. It introduced two new software virtual appliances: InterScan™ Web Security Software Virtual Appliance (IWSVA) and InterScan Messaging Security Software Virtual Appliance (IMSVA).
As part of its corporate-citizenship initiative, Trend Micro established Internet Safety for Kids & Families to raise awareness among parents, youth, educators and caregivers about the Internet safety and security issues young people face.
New customers in the second quarter include:
In Japan – KDDI Corporation
In EMEA – Intesa San Paolo
In NABU – International Aluminum
Other new products Trend Micro introduced during the second quarter included the following:
During the second quarter, Trend Micro was awarded the following patents:
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 IR site: http://us.trendmicro.com/us/about/financeinfo/index.html
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.
Additional information about Trend Micro Incorporated and the products and services are available at Trend Micro.com This Trend Micro news release and other announcements are available at http://trendmicro.mediaroom.com/ and as part of an RSS feed at www.trendmicro.com/rss Or follow our news on Twitter at @TrendMicro.
Mr. Mahendra Negi
Chief Operating Officer / Chief Financial Officer / IR Officer