Continued Strong Growth in U.S and Asia Highlight Quarter TOKYO,
April 25 /Xinhua-PRNewswire-FirstCall/ -- Trend Micro, Incorporated
(TSE:4704)(NASDAQ:TMIC), a leader in network antivirus and Internet
content security software and services, today announced earnings
results for the first quarter 2006. Trend Micro posted consolidated
net sales of 20.6 billion Yen (or US$179.6 million, 114.64 JPY = 1
USD), operating income of 8.3 billion Yen (or US$72.8 million) and
net income of 50 billion Yen (or US $43.2 million) for the quarter.
These figures reflect 19 percent growth in net sales compared to
the same period a year ago. The company continued to enjoy steady
growth around the world, led by a 39 percent year-on-year revenue
increase in North America and a 24 percent increase in Asia. Europe
exceeded expectations with growth of 12 percent year-on-year.
Strong growth in the company's consumer business and in its small
and medium business solutions helped elevate worldwide revenue with
23 and 21 percent year-on-year increases respectively. 'In the
first quarter of 2006, our growth in strategic markets such as
North America continued to be strong and we are very pleased with
our progress in delivering solutions designed to meet the specific
needs of the different types of customers we serve, such as small
and mid-sized businesses,' said Eva Chen, CEO of Trend Micro. 'We
believe this focus will enable us to sustain growth levels and we
continue to invest in developing new, innovative solutions that
will develop our long-term potential for growth." Based on
information currently available to the company, consolidated net
sales for the second quarter ending June 30, 2006 is expected to be
20 billion Yen (US$170.9 million, based on an exchange rate of 117
JPY = 1 USD). Operating income and net income are expected to be 6
billion Yen (US$51.3 million) and 3.25 billion Yen (or US$27.8
million), respectively. First Quarter Business Highlights Awards
and RecognitionCorporate -- Independent research firm, Forrester
Research Acknowledged Trend Micro as a Leader in Enterprise
Anti-Spyware in their report 'The Forrester Wave: Enterprise
Antispyware, Q1 2006.' Channel -- In March 2006, Trend Micro was
named as CRN Channel Champion in both Client Security Software and
Network Security Software Categories by the US edition of CRN
Magazine. Products -- TechTarget's SearchComputingMagazine.com
named Trend Micro Mobile Security 'Products of the Year' in January
2006. -- In early January, TechData's TechSelect Channel Community
awarded Trend Micro's SMB Solutions 'Best Solution.' Products and
Innovation Trend Micro introduced the following products in the
first quarter 2006: -- Trend Micro InterScan Web Security
Appliance, a new gateway-based hardware solution with unique
capabilities designed to provide enterprise organizations with
comprehensive front-line protection against malware and content
security threats such as spyware, malware and phishing. -- Trend
Micro HouseCall Server Edition v6.5 is the latest version of Trend
Micro online threat detection and removal software for businesses.
HouseCall Server Edition is designed to enable service providers
and enterprises to reduce end-user support costs, reduce network
resource and bandwidth usage, and offer greater security for online
customers against online fraud and identity theft. Corporate and
Business Highlights -- Trend Micro and Fortinet announced that the
two companies have reached a settlement in a longstanding patent
dispute involving Fortinet's alleged infringement of Trend Micro's
U.S. Patent 5,623,600. -- Trend Micro and SINA further expanded
their relationship, through the provision by SINA, of Trend Micro's
mobile security technology to users in China. -- Trend Micro
announced a global agreement with Ericsson to offer Trend Micro
Mobile Security within the Ericsson Mobile Device Antivirus
solution. The relationship will enable them to provide mobile
security to mobile operators and enterprises globally. Notice
Regarding Forward-looking Statements 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: -- Difficulties
in addressing new virus and other computer security problems --
Timing of new product introductions and lack of market acceptance
for our new products -- The level of continuing demand for, and
timing of sales of, our existing products -- Rapid technological
change within the antivirus software industry -- Changes in
customer needs for antivirus software -- Existing products and new
product introductions by our competitors and the pricing of those
products -- Declining prices for products and services -- The
effect of future acquisitions on our financial condition and
results of operations -- The effect of adverse economic trends on
our principal markets -- The effect of foreign exchange
fluctuations on our results of operations -- An increase in the
incidence of product returns -- The potential lack of attractive
investment targets and -- Difficulties in successfully executing
our investment strategy 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. About Trend
Micro, Inc. Trend Micro, Inc. is a leader in network antivirus and
Internet content security software and services. The Tokyo-based
corporation has business units worldwide. Trend Micro products are
sold through corporate and value-added resellers and managed
service providers. For additional information and evaluation copies
of all Trend Micro products, visit our Web site,
http://www.trendmicro.com/ . Trend Micro, the t-ball logo,
OfficeScan, PC-cillin, and VirusWall are trademarks or registered
trademarks of Trend Micro Incorporated. TrendLabs is a service mark
of Trend Micro Incorporated. All other company or product names may
be trademarks or registered trademarks of their owners.
Supplementary Information 1. Consolidated Unaudited Results of
Operations for First Quarter Ending March 31, 2006 (US GAAP)
*Figures for the First quarter of 2006 and 2005 are not audited.
(1) Consolidated Results of Operations FY2006 FY2005 Current first
Previous first quarter quarter Growth From January 1, From January
1, Rate 2006 2005 To March 31, 2006 To March 31, 2005 Millions of
yen Millions of yen % Net sales 20,594 17,301 19.0 Cost of sales *
3,679 2,410 52.7 Operating expenses * 8,569 7,590 12.9 Operating
income 8,346 7,301 14.3 Other income (expenses) 348 249 39.8 Net
income before taxes 8,694 7,550 15.1 Income taxes 3,718 3,012 23.4
Minority interest in income of consolidated subsidiaries 0 0 187.8
Equity in earnings of affiliated companies (22) 19 -217.8 Net
income 4,954 4,557 8.7 * In current first quarter, (Yen) 1,253
millions of Stock option cost was allocated in 'Cost of sales' and
'Operating expenses'. Also in 'Operating expenses', (Yen) 1,766
millions of one time payment (receipt) related to intellectual
property usage was allocated as reduction of cost. (2) Segment
information (By region) Net sales to third parties FY2006 FY2005
Current first quarter Previous first quarter From January 1, 2006
From January 1, 2005 To March 31,2006 To March 31,2005 Millions of
yen Millions of yen Japan 8,237 7,366 North America 4,720 3,401
Europe 4,830 4,314 Asia Pacific 2,166 1,748 Latin America 641 472
Total 20,594 17,301 Deferred Revenue FY2006 FY2005 As of March
31,2006 As of March 31,2005 Millions of yen Millions of yen Japan
15,125 13,185 North America 9,267 5,819 Europe 9,377 7,425 Asia
Pacific 2,819 2,036 Latin America 1,324 484 Total 37,912 28,949
(Note) Classification of countries and regions into each segment.
North America: U.S.A. Europe: Italy, Germany, France, UK, Ireland
Asia Pacific: Taiwan, Korea, Australia, Hong Kong, Malaysia, New
Zealand, China, Singapore, Thailand, India Latin America: Brazil,
Mexico (By customer size) Net sales to third parties FY2006 Current
first quarter From January 1, 2006 To March 31,2006 Millions of yen
Enterprise 5,347 Small and mid size business 9,677 Consumer 5,570
Total 20,594 (3)Basis of consolidation The number of consolidated
subsidiaries 19 (19 in overseas) The number of unconsolidated
subsidiaries -- (4) Increase (Decrease) of major assets,
liabilities and shareholders' equity As of March 31, Increase As of
December 31, 2006 (Decrease) 2005 (Assets) Millions of yen Millions
of yen Millions of yen Cash and cash equivalents 62,240 2,627
59,613 Notes and accounts receivable, trade --less allowance for
doubtful accounts and sales returns 17,641 (1,558) 19,199
Marketable securities and securities investments 35,714 2,159
33,555 Goodwill 2,119 (11) 2,130 (Liabilities) Deferred revenue
(Total of current and long term) 37,912 2,531 35,381 (Minority
interest) Minority interest in consolidated subsidiaries 5 0 5
(Shareholders' equity) Treasury stock (7,372) (89) (7,283) (Note)
In order for the warrants to be granted or transferred to the
directors and certain employees of the Company and the directors
and certain employees of an affiliated company, the Company issued
unsecured bonds with detachable warrants. Under pre-revised section
341-8-4 of the Japanese Commercial Code, the redemption and
retirement of these bonds are restricted when the total amount of
the bonds is less than the total amount of the issue price of the
stocks from unexecuted warrants. To reduce interest costs, the
Company repurchased some of the issued bonds after warrants were
detached. Based on the above reason, the Company intends to hold
the treasury bonds until they can be retired legally which is
substantially the same as redemption. Thus, bonds and treasury
bonds (4,000 millions of yen as of March 31, 2006 and 4,000
millions of yen as of December 31,2005 respectively) are disclosed
in net amount in the balance sheet. 2. Projected consolidated
earnings (US GAAP) Projected earnings for the next quarter (April
1, 2006 through June 30, 2006) Net sales Operating income Net
income Millions of yen Millions of yen Millions of yen 2nd Qtr
20,000 6,000 3,250 In 2nd quarter, the company expected that (Yen)
1,380 millions of Stock option cost will be incurred as part of
'Cost of sales' and 'Operating expense'. (Note) Since the business
environment surrounding Trend Micro Group tends to fluctuate in the
short run, it is difficult to make the highly reliable projection
figures on a yearly basis. We, therefore, decided to announce the
earnings on a quarterly basis in the fiscal year ending in December
2006 as well as earnings projection of the succeeding quarter. If
we found through our calculation conducted from time to time that
the net sales fluctuate from the most recent quarterly projection
by more than 10%, or operating income or net income fluctuates by
more than 30%, we will announce the revision of the earnings
projection. Brief Information Sales of North America Region and
Europe Region based on Local Currencies (Unaudited) 1Q2004 2Q2004
3Q2004 4Q2004 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 US$ 24,524 24,661
29,398 31,398 32,514 32,339 37,592 37,046 41,168 (1,000 US$) Euro
26,787 28,572 29,560 36,887 31,454 33,370 32,345 36,945 34,323
(1,000 Euro) For additional Information Mr. Mahendra Negi Chief
Financial Officer / IR Officer Tel: +81-3-5334-4899 Fax:
+81-3-5334-4874 Email: DATASOURCE: Trend Micro Incorporated
CONTACT: Mr. Mahendra Negi of TMIC, +81-3-5334-4899, or fax,
+81-3-5334-4874, or Web site: http://www.trendmicro.com/
Copyright
Trend Micro (NASDAQ:TMIC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trend Micro (NASDAQ:TMIC)
Historical Stock Chart
From Jul 2023 to Jul 2024