Tokyo, Japan - April 25, 2006 - 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 (US $179.6 million, 114.64 JPY = 1USD), operating income of 8.3 billion Yen (US $72.8 million) and net income of 5.0 billion Yen (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 117JPY = 1USD). Operating income and net income are expected to be 6 billion Yen (US $51.3 million) and 3.25 billion Yen (US
$27.8 million), respectively.
First Quarter Business Highlights
Awards and Recognition
Corporate
* 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,
www.trendmicro.com.
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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.
For additional Information
Mr. Mahendra Negi
Chief Financial Officer / IR Officer
Phone: +81-3-5334-4899
Fax: +81-3-5334-4874
ir@trendmicro.co.jp