Tumbleweed Announces Preliminary Second Quarter 2007 Financial Results
July 05 2007 - 4:31PM
Business Wire
Tumbleweed� Communications Corp. (NASDAQ:TMWD), the industry�s
leading pure play messaging security vendor, today announced
preliminary financial results for its second quarter ended June 30,
2007. Tumbleweed currently expects to report revenue in the range
of $14.0 to $14.3 million, a net loss in a range of $(0.05) to
$(0.06) per share, and a non-GAAP loss in a range of $(0.02) to
$(0.03) per share. Non-GAAP amounts exclude estimates for
stock-based compensation expense of $1.2 million and intangible
asset amortization expense of $300,000. �Although our second
quarter bookings were within the range we expected when we issued
our guidance in April, revenue fell short of our expectations. The
revenue shortfall was primarily due to a higher than expected ratio
of service contract renewals compared to license orders,
particularly in North America. In addition, we could not recognize
revenue in the quarter on a few larger deals due to the contract
terms of those deals,� said James P. Scullion, Chief Executive
Officer of Tumbleweed. �On the other hand, we saw growth in our
pipeline and continued high levels of customer satisfaction with
Tumbleweed products and services, in addition to the strong
renewals of service contracts from our installed base.� �The longer
term outlook is promising,� continued Scullion. �We will continue
to evolve and strengthen our sales distribution by expanding our
reach through both new and existing channel partners and by taking
steps to improve the performance of each of our sales regions
world-wide. We will discuss our outlook for the second half of the
year during our conference call later this month.� The company will
report financial results for the second quarter ended June 30, 2007
after the close of the market on Thursday, July 26. What:
Tumbleweed's Second Quarter 2007 Financial Results Conference Call
When: Thursday, July 26, 2007 at 2:30 p.m. PT (5:30 p.m. ET)
Webcast: A live Webcast of the conference call can be accessed by
logging onto the Investor Relations page at
http://www.tumbleweed.com and clicking on the conference call icon.
Dial In: To access the live conference call by phone, dial (800)
366-3908. Participants are asked to call the assigned number
approximately 10 minutes before the scheduled starting time. For
those unable to participate in the live conference call, starting
two hours after the call a replay will be available through August
9, 2007 by dialing (800) 405-2236 and entering the pass code
11092900#. An instant replay of the conference call will be
available over the Internet at http://www.tumbleweed.com in the
Investor Relations area of the website. Safe Harbor Statement
Tumbleweed cautions that forward-looking statements contained in
this press release are based on current plans and expectations, and
that a number of factors could cause the actual results to differ
materially from the guidance given at this time. These factors are
described in the Safe Harbor statement below. Except for the
historical information contained herein, the matters discussed in
this press release may constitute forward-looking statements. Our
expectations for revenue and loss per share for the second quarter
of 2007 are preliminary projections that are subject to change as
operating results for the quarter are finalized. These results,
along with our expectations and beliefs about Tumbleweed�s future
sales and sales distribution, pipeline, customer satisfaction, and
service contract renewals, involve risks and uncertainties that
could cause actual results to differ materially from those
currently expected. In some cases, forward-looking statements can
be identified by terminology such as �may,� �will,� �should,�
�potential,� �continue,� �expects,� �anticipates,� �intends,�
�plans,� �believes,� �estimates,� and similar expressions. For
further cautions about the risks of investing in Tumbleweed, we
refer you to the documents Tumbleweed files from time to time with
the Securities and Exchange Commission, particularly Tumbleweed's
Form 10-K filed March 14, 2007, Form 10-Q filed May 10, 2007, and
such filings for the periods referred to above, to be filed
subsequently. Tumbleweed assumes no obligation to update
information contained in this press release. Although this release
may remain available on Tumbleweed's website or elsewhere, its
continued availability does not indicate that Tumbleweed is
reaffirming or confirming any of the information contained herein
as of a later date. Non-GAAP Information The non-GAAP financial
information included in this press release is not prepared in
accordance with GAAP as it excludes amortization of intangible
assets and stock-based compensation expense. Management believes
that the presentation of non-GAAP information may provide useful
information to investors because Tumbleweed has historically
provided this information and understands that some investors
consider it useful in evaluating Tumbleweed's expenses. Management
also uses this non-GAAP information, along with GAAP information,
in evaluating Tumbleweed's expenses and comparing Tumbleweed�s
performance with that of its competitors. The non-GAAP results
should not be considered a substitute for financial information
presented in accordance with generally accepted accounting
principles, and may be different from non-GAAP measures used by
other companies. About Tumbleweed Tumbleweed Communications Corp.
(NASDAQ:TMWD), the industry's leading pure play messaging security
vendor, provides world-class innovative messaging security
solutions for organizations of all sizes. Organizations rely on
Tumbleweed's solutions to securely manage their Internet
communications, spanning email management to file transfers.
Tumbleweed has nearly 2,700 customers worldwide, representing
industries such as Finance, Healthcare, and the U.S. Government.
The world's most security conscious organizations rely upon
Tumbleweed technology including Bank of America Securities, JP
Morgan Chase & Co., the U.S. Food and Drug Administration, and
the U.S. Department of Defense. Our award-winning products build on
fourteen years of R&D and 26 security patents in the U.S. alone
-- many of which are licensed by other security vendors. More
information can be found at www.tumbleweed.com. Tumbleweed is a
registered trademark of Tumbleweed Communications Corp. in the
United States and/or other countries. All other trademarks are the
property of their respective owners.
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