Tumbleweed Announces Preliminary First Quarter Results Exceeded Guidance
April 02 2008 - 7:00PM
Business Wire
Tumbleweed� Communications Corp. (NASDAQ:TMWD), an industry leader
in managed file transfer and email security, today announced its
preliminary financial results for the quarter ended March 31, 2008
exceeded management�s previous guidance. Tumbleweed currently
expects to report revenue in the range of $14.8 to $15.3 million, a
net loss in a range of $(0.02) to $(0.03) per share, and non-GAAP
income in a range of $0.00 to $0.01 per share. This compares to
previous guidance of $13.0 million to $14.5 million in revenue, a
net loss of $(0.04) to $(0.06) per share and a non-GAAP net loss of
$(0.01) to $(0.03) per share. Non-GAAP amounts exclude estimates
for stock-based compensation expense and intangible asset
amortization expense. Cash and cash equivalents are expected to be
approximately $27.3 million at March 31, 2008, an increase of $1.0
million from $26.3 million at December 31, 2007. �During the first
quarter, Tumbleweed continued to execute its plans to transform the
company, and our preliminary results exceeded our guidance. We had
a strong contribution from the licensing of our intellectual
property, increased our backlog, which includes deferred revenue,
and added to our cash position. We also continued to increase the
percentage of our non-renewal commercial orders that went through
our channel partners, a key indicator of progress in transforming
our sales distribution from a direct to an indirect model. Lastly,
our bottom line benefited from the operational changes we
implemented in fourth quarter of 2007,� said James P. Scullion,
Chief Executive Officer of Tumbleweed. �I am pleased that we have
started 2008 on such a positive note. I look forward to discussing
our results in more detail during our quarterly conference call.�
These preliminary results are subject to revision. The company will
report its final financial results for the first quarter ended
March 31, 2008 after the close of the market on Thursday, May 1,
2008. What: Tumbleweed's First Quarter 2008 Financial Results
Conference Call When: Thursday, May 1, 2008 at 2:00 p.m. PT (5:00
p.m. ET) Webcast: A live Webcast of the conference call can be
accessed by logging on to 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 May 14,
2008 by dialing (800) 405-2236 and entering the pass code
11111876#. 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 information and
expectations as of the date of this press release, 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 cash balances, revenue, earnings per share on both
a GAAP and a non-GAAP basis for the first quarter of 2008, as well
as expectations regarding intellectual property licensing, backlog,
deferred revenue, addition to cash, the progress of transforming
our sales distribution model, and benefits from operational changes
made in the fourth quarter of 2007, are preliminary projections
that are subject to change as operating results for the quarter are
finalized. These results, along with other expectations and beliefs
stated in this press release 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 17, 2008, 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), an industry leader in managed file transfer and
email security, provides enterprise-class solutions to
organizations of all sizes. Tumbleweed's innovative products enable
organizations to effectively manage and protect business-critical
Internet communications, with capabilities that span secure file
transfer, encryption, data loss prevention, and email security.
Tumbleweed has more than 3,200 customers worldwide, including
blue-chip companies across an array of industries such as
Technology, Retail, Finance, Healthcare, Manufacturing, Consumer
Packaged Goods, Telecom, Energy, 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. Tumbleweed's award-winning products build on
15 years of R&D and 27 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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