MCLEAN, Va., May 22, 2018 /PRNewswire/ -- Cyren
(NASDAQ: CYRN) today announced its first quarter 2018 financial
results for the period ending March 31,
2018.
During the first quarter, Cyren grew its enterprise bookings at
a rate of 260% compared to the first quarter of 2017. The
growth was the result of continued traction with channel partners
in Europe and the US, and the
company added approximately 60 new enterprise customers and
resellers during the period.
The success during the quarter culminated in the signing of the
company's largest-ever contract, a three-year multi-million dollar
agreement with Microsoft announced in April to extend Cyren's
anti-phishing solution to millions of Office 365 enterprise
users. Due to the timing of the contract, there was no
revenue impact during the first quarter, but it is anticipated to
have a material impact on revenue throughout the rest of 2018.
"Cyren had an excellent quarter in terms of new customer and
partner acquisition," said Lior
Samuelson, CEO and Chairman of the Board at Cyren. "We added
several new resellers into the Cyren Cloud Security ecosystem, and
we're thrilled to have our anti-phishing technology selected by the
world's largest and most well known provider of enterprise email
solutions."
First Quarter 2018 Financial Highlights:
- Revenues for the first quarter of 2018 were $7.6 million, compared to $8.0 million during the first quarter of
2017.
- GAAP net loss for the first quarter of 2018 was $5.3 million, compared to a net loss of
$2.5 million in the first quarter of
2017.
- GAAP loss per basic and diluted share for the first quarter of
2018 was $0.10, compared to a loss of
$0.06 per basic and diluted share for
the first quarter of 2017.
- Non-GAAP net loss for the first quarter of 2018 was
$4.9 million, compared to a Non-GAAP
net loss of $2.4 million for the
first quarter of 2017.
- Non-GAAP loss per basic and diluted share was $0.09 for the first quarter of 2018, compared to
a Non-GAAP loss of $0.06 per share in
first quarter of 2017.
- Operating cash usage during the first quarter was $4.6 million, compared to operating cash usage of
$1.9 million in the first quarter of
2017.
- Cash usage, excluding financing activities, during the first
quarter of 2018 was $6.0 million,
compared to cash usage, excluding financing activities, of
$3.4 million during the first quarter
of 2017.
- Cash balance as of March 31, 2018
was $17.9 million, compared to
$13.5 million as of March 31, 2017 and $24.0
million as of December 31,
2017.
For information regarding the non-GAAP financial measures
discussed in this release, please see "Use of Non-GAAP Financial
Measures" and "Reconciliation of Selected GAAP Measures to Non-GAAP
Measures."
Recent Highlights:
- In January, Cyren announced an agreement with CARVIR, a global
cyber security distributor. CARVIR selected Cyren to provide Cyren
Cloud Security (both Web Security and Email Security) to over 500
MSP partners and tens of thousands of business customers.
- Cyren recently announced a strategic partnership and revenue
contract with Meta Networks, a technology leader in secure
cloud-native networking to utilize Cyren DNS and Web Security in
Meta's Network-as-a-Service SD-WAN solution in order to protect
enterprise customers around the world.
- During Q1, Cyren released version 4.3 of its CCS platform,
which adds email imposter protection, cloud access security with
application control, single sign-on authentication with SAML, and
cryptocurrency mining protection. Cyren's cryptocurrency mining
protection is unique in the industry and introduces a new URL
filtering category with the ability to block sites which exploit
the user's device resources (CPU and RAM), for the purpose of
cryptocurrency mining.
- Cyren's board of directors appointed Lauren Zletz from Warburg Pincus as a member of
the Cyren board, as of May 15, 2018,
for an initial term that will expire at Cyren's next annual
shareholders meeting, at which time, her re-election for an
additional term will be brought for shareholders' approval.
Financial Results Conference Call:
The company will host a conference call at 10 a.m. Eastern Time (5
p.m. Israel Time) on Tuesday, May 22,
2018 to discuss first quarter results.
U.S. Dial-in
Number:
|
1-800-289-0438
|
Israel Dial-in
Number:
|
1-80-921-2883
|
International
Dial-in Number:
|
1-323-794-2423
|
The call will be simultaneously webcast live on the investor
relations section of Cyren's website at www.cyren.com/ir.html, or
by using the following link:
http://public.viavid.com/index.php?id=129687.
For those unable to participate in the live conference call, a
replay will be available until June 5,
2018. To access the replay, the U.S. dial in number is
1-844-512-2921 and the non-U.S. dial in number is 1-412-317-6671.
Callers will be prompted for replay conference ID number 8346828.
An archived version of the webcast will also be available on the
investor relations section of the company's website.
About Cyren:
More than 1.3 billion users around the world rely on Cyren's
100% cloud internet security solutions to protect them against
cyber attacks and data loss every day. Powered by the world's
largest security cloud, Cyren (NASDAQ and TASE: CYRN) delivers fast
time to protection from cyber threats with award-winning security
as a service for web, email, sandboxing, and DNS for enterprises,
and embedded threat intelligence solutions for security vendors and
service providers. Customers like Google, Microsoft and Check Point
are just a few of the businesses that depend on Cyren every day to
power their security. Learn more at www.cyren.com.
Blog: http://blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc or
www.twitter.com/cyren_ir
Use of Non-GAAP Financial Measures:
Non-GAAP financial measures consist of GAAP financial
measures adjusted to exclude: stock-based compensation expenses,
amortization of acquired intangible assets, executive termination
costs, deferred taxes and deferred revenues related to
acquisitions, one-time gain from sale of investment in affiliate,
adjustments to earn-out obligations, capitalization of technology,
accretion of discount on convertible note and change in fair value
of the embedded conversion feature. The purpose of such adjustments
is to give an indication of the company's performance exclusive of
non-cash charges and other items that are considered by management
to be outside of the company's core operating results. The
company's non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with the company's
consolidated financial statements prepared in accordance with
GAAP.
Company management regularly uses supplemental non-GAAP
financial measures internally to understand, manage and evaluate
the business and make operating decisions.
These non-GAAP measures are among the primary factors
management uses in planning for and forecasting future periods. The
company believes this adjustment is useful to investors as a
measure of the ongoing performance of the business. The company
believes these non-GAAP financial measures provide consistent and
comparable measures to help investors understand the company's
current and future operating cash flow performance. These non-GAAP
financial measures may differ materially from the non-GAAP
financial measures used by other companies. Reconciliation between
results on a GAAP and non-GAAP basis is provided in a table
immediately following the Consolidated Statements of Income. The
presentation of this non-GAAP financial information is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
Management uses both GAAP and non-GAAP measures when evaluating the
business internally and therefore felt it important to make these
non-GAAP adjustments available to investors.
This press release contains forward-looking statements,
including projections about the company's business, within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. For example, statements
in the future tense, and statements including words such as
"expect," "plan," "estimate," "anticipate," or "believe" are
forward-looking statements. These statements are based on
information available at the time of the press release and the
company assumes no obligation to update any of them. The statements
in this press release are not guarantees of future performance and
actual results could differ materially from current expectations as
a result of numerous factors, including business conditions and
growth or deterioration in the internet security market,
technological developments, products offered by competitors,
availability of qualified staff, and technological difficulties and
resource constraints encountered in developing new products, as
well as those risks described in the company's Annual Reports on
Form 20-F and reports on Form 6-K, which are available through
www.sec.gov.
Company Contact
Mike
Myshrall, CFO
Cyren
+1.703.760.3320
mike.myshrall@cyren.com
Media Contact
Matthew Zintel
Zintel Public Relations
+1.281.444.1590
matthew.zintel@zintelpr.com
CYREN
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands
of U.S. dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
March
31
|
|
2018
|
|
2017
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Revenues
|
$
7,636
|
|
$
7,959
|
|
|
|
|
Cost of
revenues
|
3,382
|
|
3,032
|
|
|
|
|
Gross
profit
|
4,254
|
|
4,927
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
3,355
|
|
2,290
|
|
|
|
|
Sales and
marketing
|
4,252
|
|
3,573
|
|
|
|
|
General and
administrative
|
2,038
|
|
1,563
|
|
|
|
|
Total operating
expenses
|
9,645
|
|
7,426
|
|
|
|
|
Operating
loss
|
(5,391)
|
|
(2,499)
|
|
|
|
|
Other income
(expense)
|
(2)
|
|
1
|
|
|
|
|
Financial income
(expense), net
|
4
|
|
(75)
|
|
|
|
|
Loss before
taxes
|
(5,389)
|
|
(2,573)
|
|
|
|
|
Tax benefit
(expense)
|
46
|
|
55
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(5,343)
|
|
$
(2,518)
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
$
(0.10)
|
|
$
(0.06)
|
|
|
|
|
Loss per share -
diluted
|
$
(0.10)
|
|
$
(0.06)
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
Basic
|
53,381
|
|
39,179
|
|
|
|
|
Diluted
|
53,381
|
|
39,179
|
CYREN
LTD.
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
|
(in thousands
of U.S.dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2018
|
|
2017
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
GAAP operating
loss
|
$
(5,391)
|
|
$
(2,499)
|
Stock-based
compensation (1)
|
323
|
|
280
|
Amortization of
intangible assets (2)
|
1,009
|
|
1,040
|
Capitalization of
technology (5)
|
(877)
|
|
(1,126)
|
Non-GAAP operating
loss
|
$
(4,936)
|
|
$
(2,305)
|
|
|
|
|
GAAP net
loss
|
$
(5,343)
|
|
$
(2,518)
|
Stock-based
compensation (1)
|
323
|
|
280
|
Amortization of
intangible assets (2)
|
1,009
|
|
1,040
|
Adjustment to
earn-out liabilities and related expenses (3)
|
27
|
|
31
|
Amortization of
deferred tax assets (4)
|
(64)
|
|
(60)
|
Capitalization of
technology (5)
|
(877)
|
|
(1,126)
|
Non-GAAP net
loss
|
$
(4,925)
|
|
$
(2,353)
|
|
|
|
|
GAAP loss per share
(diluted)
|
$
(0.10)
|
|
$
(0.06)
|
Stock-based
compensation (1)
|
0.01
|
|
0.00
|
Amortization of
intangible assets (2)
|
0.02
|
|
0.03
|
Adjustment to
earn-out liabilities and related expenses (3)
|
0.00
|
|
0.00
|
Amortization of
deferred tax assets (4)
|
(0.00)
|
|
0.00
|
Capitalization of
technology (5)
|
(0.02)
|
|
(0.03)
|
Non-GAAP loss per
share (diluted)
|
$
(0.09)
|
|
$
(0.06)
|
|
|
|
|
Numbers of shares
used in computing non-GAAP loss per share (diluted)
|
53,381
|
|
39,179
|
|
|
|
|
(1) Stock-based
compensation
|
|
|
|
Cost of
revenues
|
$
31
|
|
$
30
|
Research and
development
|
91
|
|
82
|
Sales and
marketing
|
101
|
|
55
|
General and
administrative
|
100
|
|
113
|
|
$
323
|
|
$
280
|
|
|
|
|
(2) Amortization
of intangible assets
|
|
|
|
Cost of
revenues
|
$
852
|
|
$
874
|
Sales and
marketing
|
157
|
|
166
|
|
$
1,009
|
|
$
1,040
|
|
|
|
|
(3) Adjustment to
earn-out liabilities and related expenses
|
|
|
|
Financial expenses,
net
|
$
27
|
|
$
31
|
|
|
|
|
(4) Amortization
of deferred tax assets
|
|
|
|
Tax benefit
(expense)
|
$
(64)
|
|
$
(60)
|
|
|
|
|
(5) Capitalization
of technology
|
|
|
|
Research and
development
|
$
(877)
|
|
$
(1,126)
|
CYREN
LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
March
31
|
|
December
31
|
|
2018
|
|
2017
|
|
Unaudited
|
|
Audited
|
|
|
|
|
Assets
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash
equivalents
|
$
17,940
|
|
$
23,981
|
Trade receivables,
net
|
2,261
|
|
2,890
|
Deferred
commissions
|
990
|
|
-
|
Prepaid expenses and
other receivables
|
2,017
|
|
1,339
|
Total current
assets
|
23,208
|
|
28,210
|
|
|
|
|
Long-term deferred
commissions
|
327
|
|
-
|
Lease
deposits
|
603
|
|
379
|
Severance pay
fund
|
640
|
|
714
|
Property and
equipment, net
|
3,185
|
|
2,787
|
Intangible assets,
net
|
10,994
|
|
11,018
|
Goodwill
|
21,521
|
|
21,128
|
Total long-term
assets
|
37,270
|
|
36,026
|
Total
assets
|
$
60,478
|
|
$
64,236
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Trade
payables
|
$
1,000
|
|
$
1,017
|
Employees and payroll
accruals
|
3,183
|
|
3,239
|
Accrued expenses and
other liabilities
|
1,038
|
|
1,012
|
Earn-out
consideration
|
3,717
|
|
3,588
|
Deferred
revenues
|
4,485
|
|
5,032
|
Total current
liabilities
|
13,423
|
|
13,888
|
|
|
|
|
Deferred
revenues
|
562
|
|
524
|
Deferred tax
liability
|
1,341
|
|
1,355
|
Accrued severance
pay
|
864
|
|
930
|
Other
liabilities
|
507
|
|
438
|
Total long-term
liabilities
|
3,274
|
|
3,247
|
|
|
|
|
Shareholders'
equity
|
43,781
|
|
47,101
|
Total
liabilities and shareholders' equity
|
$
60,478
|
|
$
64,236
|
CYREN
LTD.
|
|
CONDENSED
CONSOLIDATED CASH FLOW DATA
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Net loss
|
$
(5,343)
|
|
$
(2,518)
|
|
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation
|
455
|
|
275
|
Stock-based
compensation
|
323
|
|
280
|
Amortization of
intangible assets
|
1,009
|
|
1,040
|
Amortization of
deferred commissions
|
318
|
|
-
|
Other expenses
related to the earn-out consideration
|
27
|
|
31
|
Deferred
taxes
|
(47)
|
|
(53)
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
Trade
receivables
|
587
|
|
25
|
Prepaid expenses and
other receivables
|
(659)
|
|
(396)
|
Deferred
commissions
|
(328)
|
|
-
|
Change in long-term
lease deposits
|
(223)
|
|
(22)
|
Trade
payables
|
(39)
|
|
90
|
Employees and payroll
accruals, accrued expenses and other liabilities
|
(252)
|
|
(218)
|
Deferred
revenues
|
(509)
|
|
(489)
|
Accrued severance
pay, net
|
8
|
|
30
|
Other long-term
liabilities
|
61
|
|
-
|
Net cash used in
operating activities
|
(4,612)
|
|
(1,925)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Capitalization of
technology, net of grants received
|
(662)
|
|
(1,126)
|
Purchase of property
and equipment
|
(822)
|
|
(354)
|
Net cash used in
investing activities
|
(1,484)
|
|
(1,480)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
convertible note
|
-
|
|
6,300
|
Proceeds from options
exercised
|
19
|
|
6
|
Net cash provided
by financing activities
|
19
|
|
6,306
|
Effect of exchange
rate changes on cash
|
36
|
|
16
|
Increase
(decrease) in cash and cash equivalents
|
(6,041)
|
|
2,917
|
Cash and cash
equivalents at the beginning of the period
|
23,981
|
|
10,621
|
Cash and cash
equivalents at the end of the period
|
$
17,940
|
|
$
13,538
|
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SOURCE Cyren