Tokyo, Japan - July 29, 2004 - Trend Micro, Inc. (TSE: 4704, NASDAQ: TMIC), a leader in network antivirus and Internet content security software and services, today announced record earnings for the second quarter 2004.
Trend Micro posted consolidated net sales of 14.8 billion Yen (or US $136 million, based on an exchange rate as of June 30, 2004; 109JPY = 1USD), operating income of 6.3 billion Yen (or US $57 million) and net income of 3.8 billion Yen (or US $35 million) for the second quarter 2004. These figures reflect gains of 30% in net sales, 119% in operating income and 144% in net income compared with the same period a year ago.
Net sales from enterprise products grew 26% year over year and comprised 77% of Q2 revenues; net sales from consumer products grew 48% year over year and made up 23% of Q2 sales.
If Q2 results are converted from Japanese yen to US dollars*, Q2 2004 consolidated net sales grew 41%, net sales of enterprise products grew 36%, and net sales of consumer products grew 60% year over year.
"In the first half of 2004, we continued to see good growth from our existing products while simultaneously reaching another milestone in our long history of innovation that we expect will fuel our growth in the future," commented Steve Chang, CEO and founder of Trend Micro. "Within a short time, we introduced our network-level virus scanning appliance, Trend Micro Network VirusWall, and unveiled a unique technology and service collaboration with Cisco. Both of these initiatives will better position us to deliver effective solutions to customers worldwide, and to minimize the business disruption caused by network worms, viruses and other such threats."
Based on information currently available to the company, consolidated net sales for the third quarter ending September 30, 2004 is expected to be 15 billion Yen (or US $138 million, based on an exchange rate as of June 30, 2004; 109JPY = 1USD). Operating income and net income are expected to be 5.5 billion Yen (or US $50 million) and 3.3 billion Yen (or US $30 million), respectively.
* These numbers were calculated based on the following exchange rates: 1 USD=118.50 JPY for Q2 2003 and 1 USD =109.78 JPY for Q2 2004, which are the weighted average exchange rates used to convert USD net sales to JPY for those respective quarters.
Second Quarter Business Highlights
* Trend Micro and Cisco Systems announced a joint collaboration to deliver comprehensive network worm and virus outbreak-prevention services to help protect networked business. Under this agreement, Cisco will initially integrate Trend Micro's network worm and virus signatures with the Cisco Intrusion Detection System (IDS) deployed in Cisco branded routers, switches, and network security appliances. Cisco has also licensed additional Trend Micro technology to extend its threat prevention capabilities in subsequent phases. Trend Micro also announced its continuing support of the Cisco Network Admission Control program with the release of Trend Micro OfficeScan Corporate Edition v6.5.
* In the second quarter of 2004, Trend Micro announced several new enterprise offerings, including: Trend Micro(tm) OfficeScan(tm) Corporate Edition v6.5, enabled to support the Cisco Network Admission Control program; Trend Micro InterScan(tm) Web Security Suite v2.0, enhanced with anti-spam, anti-phishing, anti-spyware, and URL filtering capabilities for more comprehensive Web-based security; Trend Micro ScanMail(tm) for Lotus Domino v2.6 for the OS/390 and zOS platforms; and Trend Micro InterScan eManager(tm) v5.22 for InterScan Messaging Security Suite 5.15/5.55 for Windows, Linux and Solaris.
* New customers gained during the quarter came from the technology, service, and energy sectors including: ARAMARK Canada Ltd, part of ARAMARK Corporation, which provides award-winning food and facilities management services; Dell (UK), part of one of the world's leading computer systems companies; New South Wales Police, Australia's police organization; and Petróleos de Venezuela, S.A., a Latin American company.
* During the second quarter, Trend Micro won awards and recognition for several products offerings for both its enterprise customers and individual consumers. Trend Micro Network VirusWall(tm) 1200 outbreak-prevention appliance earned a "Recommended" title from CRN magazine for "providing a unique and thorough solution for protecting networks from attack." Trend Micro NeatSuite(tm) won the "Well-Connected" Award from Network Computing magazine for 2004. Trend Micro PC-Cillin(tm) Internet Security 2004 won the "World Class 2004" title from PC World magazine for being the best antivirus software solution. Trend Micro ServerProtect(tm) achieved a VB100% certification from Virus Bulletin for in-the-wild threat detection.
-----------
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 U.S. Securities and Exchange Commission.
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 Web site, www.trendmicro.com.
Trend Micro, the t-ball logo, eManager, InterScan, NeatSuite, OfficeScan, PC-Cillin, ScanMail, VirusWall are trademarks or registered trademarks of Trend Micro Incorporated. All other company or product names may be trademarks or registered trademarks of their owners.
Meer informatie:
Trend Micro
Anna Wright
EMEA PR Manager
Tel: +44 (0)1628 400534
E-mail: Anna_Wright@trendmicro.co.uk
Lammers van Toorenburg Benelux PR
Anja Breunis / Annegees van Linge
Tel: +31 (0)30 6565 070
E-mail: anja@lvtpr.nl / annegees@lvtpr.nl