Tokyo, Japan - October 21st, 2003 - Trend Micro Inc (TSE: 4704; Nasdaq: TMIC), a leader in network antivirus and Internet content security software and services, today reported results in US GAAP for the third quarter 2003, ended September 30th, 2003. Trend Micro posted consolidated net sales of 12.4 billion yen, (or US $112.6million¹), operating income of 4.1 billion yen (or US $37.1 million) and net income of 2.3 billion yen (or US $21.2 million). The figures for the quarter reflect gains of 16% in net sales compared with the same period a year ago and 9% sequentially.
All regions experienced growth compared with the same period a year ago. Enterprise products represented 79% of net sales and consumer products represented 21% net sales.
"We are pleased to report continued growth during Q3," said Steve Chang, Chairman and CEO of Trend Micro. "Our core business is growing worldwide and the quality of our products and services has been recognized with awards from around the globe during this quarter. In the U.S, sales have shown a significant upturn and we are now into our third consecutive quarter of double-digit growth in the region. As a company, Trend Micro remains highly committed to investing in its channels, products and services in order to promote growth in future years."
Consolidated net sales for the fourth quarter ending December 31, 2003, is expected to be 12.8 billion yen (or US $116.4 million). Operating income and net income are expected to be 4.3 billion yen (or US $39.1 million) and 2.5 billion yen (or US $22.3 million), respectively.
Third Quarter Business Highlights
- During the third quarter, International Data Corporation (IDC) confirmed Trend Micro as the worldwide market leader in network antivirus software and services with respect to Internet gateway and mail server segments for the third consecutive year. The IDC study, entitled "Worldwide Antivirus Software Forecast and Analysis, 2003-2007: Return of the Consumer," also named Trend Micro as the fastest growing antivirus vendor in the file server segment based on 2002 revenues.
- In September, Information Security Magazine named Trend Micro's Chief Technology Officer, Eva Chen, among the top five most influential "women of vision" in the Information Security field. She was selected from a group of 25 visionaries, including educational, IT, and business leaders.
- Trend Micro was awarded first place among the 2003 Taiwan Top Ten Global Brands, with a brand value estimated at US$ 763 million, the highest international brand value in Taiwan. The Bureau of Foreign Trade under the MOEA, CETRA, BiNext and Interbrand jointly conducted the survey over a three-month period, evaluating 1000 top enterprises in Taiwan.
- Trend Micro Premium Support won the Service & Support Professionals Association (SSPA) 2003 STAR Award in the Innovative Support category. In Japan, the support section for Japanese PC-Cillin users was awarded "Best Helpdesk of The Year 2003" by the Japan Institute of Office Automation. In July, the Trend Micro Germany Competence Centre won the Help Desk Institute Award for "Best internal service organisation in the German speaking region" at Help Desk World 2003 in Bremen, Germany.
- In early September Trend Micro introduced InterScan Web Security Suite for the Microsoft Windows operating platform. Trend Micro InterScan Web Security Suite is the first gateway antivirus solution to focus on HTTP and FTP traffic protocols, bringing high-performance gateway protection to enterprise customers.
¹ $1 US = 110 Japanese Yen
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 anti-virus software industry;
- Changes in customer needs for anti-virus software;
- Existing products and new product introductions by our competitors and the pricing of those products;
- Declining prices for our 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 SEC.
About Trend Micro
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 website, http://www.trendmicro.com.