MCLEAN, Va., May 15, 2019 /PRNewswire/ -- Cyren (NASDAQ:
CYRN) today announced its first quarter 2019 financial results for
the period ending March 31,
2019.
During the first quarter, Cyren reported quarterly revenues of
$9.7 million – an increase of 26%
over the first quarter of 2018. Annual recurring revenue from
Cyren's enterprise business finished the quarter at $6.8 million compared to $4.8 million at the end of Q1 2018, representing
a 41% annual increase.
"We are pleased with the company's financial results during the
first quarter," said Lior Samuelson,
Chairman of the Board at Cyren. "We experienced continued demand
for Cyren's email security solutions, which translated to solid
year-over-year top line growth. More importantly, I feel like
we have built a solid foundation for future growth, and look
forward to working with Cyren's next CEO to take the company to new
heights."
Following Cyren's previously announced CEO transition plan, on
April 24, the company announced that
Brett Jackson was appointed by
Cyren's Board to serve as the company's next CEO, who started in
the position on May 6. Mr. Jackson will be introduced by Mr.
Samuelson on the company's first quarter financial results
conference call on May 15.
First Quarter 2019 Financial Highlights:
-
Revenues for the first quarter of 2019 were $9.7 million, compared to $7.7 million during the first quarter of 2018,
and $9.5 million last quarter.
-
GAAP net loss for the first quarter of 2019 was $4.6 million, compared to a net loss of
$5.2 million in the first quarter of
2018.
-
GAAP loss per basic and diluted share for the first quarter of
2019 was $0.08, compared to a loss of
$0.10 per basic and diluted share for
the first quarter of 2018.
-
Non-GAAP net loss for the first quarter of 2019 was $4.4 million, compared to a Non-GAAP net loss of
$4.8 million for the first quarter of
2018.
-
Non-GAAP loss per basic and diluted share was $0.08 for the first quarter of 2019, compared to
a Non-GAAP loss of $0.09 per share in
first quarter of 2018.
-
Operating cash flow during the first quarter of 2019 was
negative $1.3 million, compared to
operating cash flow of negative $4.2
million during the first quarter of 2018.
-
Net cash flow for the first quarter of 2019 was negative
$5.1 million, compared to negative
$5.7 million during the first quarter
of 2018.
-
Cash balance as of March 31, 2019
was $12.4 million, compared to
$17.6 million as of December 31, 2018.
For information regarding the non-GAAP financial measures
discussed in this release, please see "Use of Non-GAAP Financial
Measures" and "Reconciliation of Selected GAAP Measures to Non-GAAP
Measures."
Recent Business Highlights:
- In April, Cyren announced the appointment of Brett Jackson as the company's new Chief
Executive Officer. Mr. Jackson is an experienced, growth-oriented
CEO and has led and scaled multiple companies in the security and
analytics markets. He was unanimously approved by Cyren's board of
directors.
- Cyren was recently honored in the Cybersecurity Excellence
Awards, with its cloud-based Cyren Email Security winning a
first-place gold award in the email security category against six
other finalists. This is the third year in a row that Cyren
products have been recognized in the Cybersecurity Excellence
Awards.
- In January, Cyren announced a partnership with Microsoft to
integrate its web security technology directly into Windows
Defender Advanced Threat Protection (ATP). The offering is
initially being launched in a private preview with a select set of
enterprise customers during the second quarter of 2019, with the
goal of reaching general availability for all Windows Defender ATP
customers later in the year.
Financial Results Conference Call:
The company will host a conference call at 10 a.m. Eastern Time (5
p.m. Israel Time) on Wednesday, May
15, 2019 to discuss first quarter results.
|
U.S. Dial-in
Number:
|
1-877-407-0312
|
|
Israel Dial-in
Number:
|
1-80-940-6247
|
|
International
Dial-in Number:
|
1-201-389-0899
|
The call will be simultaneously webcast live on the investor
relations section of Cyren's website at https://ir.cyren.com, or by
using the following link:
https://webcasts.eqs.com/cyren20190515.
For those unable to participate in the live conference call, a
replay will be available until May 29,
2019. To access the replay, the U.S. dial in number is
1-877-660-6853 and the non-U.S. dial in number is 1-201-612-7415.
Callers will be prompted for replay conference ID number 13690390.
An archived version of the webcast will also be available on the
investor relations section of the company's website at
https://ir.cyren.com/events.
About Cyren:
More than 1.3 billion users around the world rely on Cyren's
100% cloud security solutions to protect them against cyber attacks
and data loss every day. Powered by the world's largest security
cloud, Cyren (NASDAQ: CYRN) delivers fast time-to-protection with
award-winning email security, cloud sandboxing and DNS filtering
services for business, and threat intelligence solutions for
service providers and security vendors like Microsoft, Google and
Check Point. Learn more at www.cyren.com.
Blog: http://blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc
Use of Non-GAAP Financial Measures:
Non-GAAP financial measures consist of GAAP financial
measures adjusted to exclude: stock-based compensation expenses,
amortization of acquired intangible assets, and deferred taxes
related to acquisitions, adjustments to earn-out obligations, and
capitalization of technology. The purpose of such adjustments is to
give an indication of the company's performance exclusive of
non-cash charges and other items that are considered by management
to be outside of the company's core operating results. The
company's non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with the company's
consolidated financial statements prepared in accordance with
GAAP.
Company management regularly uses supplemental non-GAAP
financial measures internally to understand, manage and evaluate
the business and make operating decisions.
These non-GAAP measures are among the primary factors
management uses in planning for and forecasting future periods. The
company believes this adjustment is useful to investors as a
measure of the ongoing performance of the business. The company
believes these non-GAAP financial measures provide consistent and
comparable measures to help investors understand the company's
current and future operating cash flow performance. These non-GAAP
financial measures may differ materially from the non-GAAP
financial measures used by other companies. Reconciliation between
results on a GAAP and non-GAAP basis is provided in a table
immediately following the Consolidated Statements of Income. The
presentation of this non-GAAP financial information is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
Management uses both GAAP and non-GAAP measures when evaluating the
business internally and therefore felt it important to make these
non-GAAP adjustments available to investors.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. For example,
statements in the future tense, and statements including words such
as "expect," "plan," "estimate," "anticipate," or "believe" are
forward-looking statements. These statements are based on
information available at the time of the press release and the
company assumes no obligation to update any of them. The statements
in this press release are not guarantees of future performance and
actual results could differ materially from current expectations as
a result of numerous factors, including our CEO transition,
business conditions and growth or deterioration in the internet
security market, technological developments, products offered by
competitors, availability of qualified staff, and technological
difficulties and resource constraints encountered in developing new
products, as well as those risks described in the company's
publicly filed reports, which are available through
www.sec.gov.
Company Contact
Mike
Myshrall, CFO
Cyren
+1.703.760.3320
mike.myshrall@cyren.com
Media Contact
Matthew Zintel
Zintel Public Relations
+1.281.444.1590
matthew.zintel@zintelpr.com
|
CYREN
LTD.
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
(in thousands of U.S.
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2019
|
|
2018
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
Revenues
|
$
9,655
|
|
$
7,636
|
|
|
|
|
|
Cost of
revenues
|
4,000
|
|
3,382
|
|
|
|
|
|
Gross
profit
|
5,655
|
|
4,254
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research
and development, net
|
4,177
|
|
3,355
|
|
|
|
|
|
Sales
and marketing
|
3,856
|
|
4,145
|
|
|
|
|
|
General
and administrative
|
2,432
|
|
2,038
|
|
|
|
|
|
Total operating
expenses
|
10,465
|
|
9,538
|
|
|
|
|
|
Operating
loss
|
(4,810)
|
|
(5,284)
|
|
|
|
|
|
Other income
(expense), net
|
248
|
|
(2)
|
|
|
|
|
|
Financial expense, net
|
(53)
|
|
4
|
|
|
|
|
|
Loss before
taxes
|
(4,615)
|
|
(5,282)
|
|
|
|
|
|
Tax
benefit
|
39
|
|
46
|
|
|
|
|
|
Net
loss
|
$
(4,576)
|
|
$
(5,236)
|
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
$
(0.08)
|
|
$
(0.10)
|
|
|
|
|
|
Loss per share -
diluted
|
$
(0.08)
|
|
$
(0.10)
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
Basic
|
54,177
|
|
53,381
|
|
|
|
|
|
Diluted
|
54,177
|
|
53,381
|
|
CYREN
LTD.
|
|
|
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
|
|
|
|
|
|
(in thousands of
U.S.dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2019
|
|
2018
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
GAAP gross
profit
|
$
5,655
|
|
$
4,254
|
|
GAAP gross
margin
|
59%
|
|
56%
|
|
Plus:
|
|
|
|
|
Stock-based
compensation
|
29
|
|
31
|
|
Amortization of
intangible assets
|
839
|
|
852
|
|
Non-GAAP gross
profit
|
6,523
|
|
5,137
|
|
Non-GAAP gross
margin
|
68%
|
|
67%
|
|
|
|
|
|
GAAP operating
loss
|
(4,810)
|
|
(5,284)
|
|
Plus:
|
|
|
|
|
Stock-based
compensation
|
269
|
|
323
|
|
Amortization of
intangible assets
|
963
|
|
1,009
|
|
Capitalization of
technology
|
(742)
|
|
(877)
|
|
Non-GAAP operating
loss
|
(4,320)
|
|
(4,829)
|
|
|
|
|
|
GAAP net
loss
|
(4,576)
|
|
(5,236)
|
|
Plus:
|
|
|
|
|
Stock-based
compensation expense
|
269
|
|
323
|
|
Intangible
amortization expense
|
963
|
|
1,009
|
|
Adjustment to
earn-out liabilities
|
-
|
|
27
|
|
Amortization of
deferred tax assets
|
(57)
|
|
(64)
|
|
Gain from an earn-out
liability settlement
|
(256)
|
|
-
|
|
Capitalization of
technology
|
(770)
|
|
(877)
|
|
Non-GAAP net
loss
|
$
(4,427)
|
|
$
(4,818)
|
|
|
|
|
|
Numerator for
non-GAAP EPS calculation
|
$
(4,427)
|
|
$
(4,818)
|
|
Non-GAAP net loss per
share
|
$
(0.08)
|
|
$
(0.09)
|
|
|
|
|
|
GAAP weighted-average
shares used to
|
|
|
|
|
compute net loss per
share
|
54,177
|
|
53,381
|
|
CYREN
LTD.
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
March
31
|
|
December
31
|
|
2019
|
|
2018
|
|
Unaudited
|
|
Audited
|
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
12,444
|
|
$
17,571
|
|
Trade receivables,
net
|
3,024
|
|
3,658
|
|
Deferred
commissions
|
909
|
|
887
|
|
Prepaid expenses and
other receivables
|
1,472
|
|
778
|
|
Total current
assets
|
17,849
|
|
22,894
|
|
|
|
|
|
Long-term deferred
commissions
|
1,783
|
|
1,880
|
|
Lease
deposits
|
812
|
|
821
|
|
Operating lease
right-of-use assets
|
9,675
|
|
-
|
|
Severance pay
fund
|
541
|
|
503
|
|
Property and
equipment, net
|
4,692
|
|
4,608
|
|
Intangible assets,
net
|
8,554
|
|
8,802
|
|
Goodwill
|
20,262
|
|
20,519
|
|
Total long-term
assets
|
46,319
|
|
37,133
|
|
Total
assets
|
$
64,168
|
|
$
60,027
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Trade
payables
|
$
1,270
|
|
$
1,668
|
|
Employees and payroll
accruals
|
3,375
|
|
3,959
|
|
Accrued expenses and
other liabilities
|
1,343
|
|
910
|
|
Operating lease
liabilities
|
1,277
|
|
-
|
|
Earn-out
consideration
|
-
|
|
2,926
|
|
Deferred
revenues
|
5,498
|
|
5,773
|
|
Total current
liabilities
|
12,763
|
|
15,236
|
|
|
|
|
|
Deferred
revenues
|
3,242
|
|
503
|
|
Convertible
notes
|
10,000
|
|
10,000
|
|
Long-term operating
lease liabilities
|
8,724
|
|
-
|
|
Deferred tax
liability
|
1,045
|
|
1,130
|
|
Accrued severance
pay
|
677
|
|
598
|
|
Other
liabilities
|
347
|
|
700
|
|
Total long-term
liabilities
|
24,035
|
|
12,931
|
|
|
|
|
|
Shareholders'
equity
|
27,370
|
|
31,860
|
|
Total liabilities and
shareholders' equity
|
$
64,168
|
|
$
60,027
|
|
CYREN
LTD.
|
|
|
|
|
|
CONDENSED
CONSOLIDATED CASH FLOW DATA
|
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2019
|
|
2018
|
|
Cash flows from
operating activities:
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
Net loss
|
$
(4,576)
|
|
$
(5,236)
|
|
|
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Loss on disposal of
property and equipment
|
1
|
|
-
|
|
Depreciation
|
461
|
|
455
|
|
Stock-based
compensation
|
269
|
|
323
|
|
Amortization of
intangible assets
|
966
|
|
1,009
|
|
Amortization of
deferred commissions
|
(332)
|
|
242
|
|
Amortization of
operating lease right-of-use assets
|
351
|
|
-
|
|
Interest on
convertible notes
|
140
|
|
-
|
|
Other expenses
(income) related to the earn-out consideration
|
(256)
|
|
27
|
|
Deferred taxes,
net
|
(69)
|
|
(47)
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Trade
receivables
|
678
|
|
587
|
|
Prepaid expenses and
other receivables
|
(738)
|
|
(659)
|
|
Deferred
commissions
|
407
|
|
(359)
|
|
Change in long-term
lease deposits
|
20
|
|
(3)
|
|
Trade
payables
|
(405)
|
|
(39)
|
|
Employees and payroll
accruals, accrued expenses and other liabilities
|
(274)
|
|
(252)
|
|
Deferred
revenues
|
2,463
|
|
(509)
|
|
Accrued severance
pay, net
|
41
|
|
8
|
|
Operating lease
liabilities
|
(365)
|
|
-
|
|
Other long-term
liabilities
|
(111)
|
|
61
|
|
Net cash provided
by (used in) operating activities
|
(1,329)
|
|
(4,392)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capitalization of
technology, net of grants received
|
(627)
|
|
(662)
|
|
Purchase of property
and equipment
|
(544)
|
|
(822)
|
|
Net cash used in
investing activities
|
(1,171)
|
|
(1,484)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Payment of earnout
liability
|
(2,680)
|
|
-
|
|
Proceeds from options
exercised
|
189
|
|
19
|
|
Net cash provided
by (used in) financing activities
|
(2,491)
|
|
19
|
|
Effect of exchange
rate changes on cash
|
(126)
|
|
36
|
|
Increase
(decrease) in cash, cash equivalents and restricted
cash
|
(5,117)
|
|
(5,821)
|
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
18,156
|
|
24,228
|
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
$
13,039
|
|
$
18,407
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash as shown in the
consolidated statements of cash flow:
|
|
|
|
|
Cash and cash
equivalents
|
$
12,444
|
|
$
17,940
|
|
Restricted cash
included in long-term restricted lease deposits
|
595
|
|
467
|
|
|
|
|
|
Total cash, cash
equivalents and restricted cash
|
$
13,039
|
|
$
18,407
|
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SOURCE Cyren