Enterprise business achieves nearly 30-percent growth globally,
with US and Europe leading revenue growth Trend Micro net sales in
yen increase by 12 percent year over year TOKYO, April 26
/Xinhua-PRNewswire-FirstCall/ -- 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 2007, including record net sales for
the first quarter 2007. Trend Micro posted consolidated net sales
of 23.25 billion Yen (or US $194.95 million, 119.27JPY = 1USD), and
operating income and net income both performed above expectations.
The company posted operating income of 6.63 billion Yen (or US
$55.57 million) and net income of 4.35 billion Yen (or US $36.45
million) for the quarter. These figures reflect 12 percent growth
in net sales compared to the same period a year ago. The Company
continued to see strong growth, led by a 20-percent year-over- year
revenue increase in North America and 14-percent in Europe, this
was followed by Asia Pacific and Japan at 10-percent and 6-percent
growth respectively. Much of the company's worldwide growth was
buoyed by strong sales in Enterprise solutions, which experienced a
29-percent increase year- over-year. Long-term growth was further
supported with the introduction of a number of new solutions and
services, and ground-breaking, new Total Web Threat Protection
technology. Trend Micro launched a new messaging security service
for enterprise customers, InterScan Messaging Hosted Service. The
Company also launched the beta version of a new consumer
web-reputation service called TrendProtect, in March 2007 and
announced the acquisition of HijackThis, a popular freeware
anti-spyware program now available on TrendSecure that enables
technically savvy users to identify and remove unwanted and
malicious programs. 'We were very pleased with our achievements in
the first quarter of 2007, and particularly note the introduction
of our Total Web Threat Protection technology which helps advance
the preventative security available to customers against pernicious
web threats, today and tomorrow,' said Eva Chen, CEO of Trend
Micro. 'We delivered a number of new messaging-protection,
small-medium business and mobile device solutions for both
businesses and consumers, and the acquisition of HijackThis extends
our ability to provide value-add services to end-users everywhere.
Our steadfast focus on content security continues to support our
potential for growth now and in the future.' Based on information
currently available to the company, consolidated net sales for the
second quarter ending June 30, 2007 is expected to be 22.5 billion
Yen (or US $192.31 million, based on an exchange rate of 117JPY =
1USD). Operating income and net income are expected to be 5.3
billion Yen (or US $45.30 million) and 3.0 billion Yen (or US
$25.64 million), respectively. Growth rate figures are calculated
from Japanese Yen results. Some discrepancy may therefore be noted
in US Dollar comparisons owing to fluctuations in currency
conversion rates. First Quarter Business Highlights Corporate -- In
March 2007, Trend Micro announced state-of-the-art Web threat
protection technology. New in-the-cloud Trend Micro Web Reputation
technology is a key new innovation being added to the Trend Micro
multi-layered approach for dealing with evolving multi-component
Web threats that take advantage of the interactive nature of the
Internet. Total Web Threat Protection is a key component within the
Trend Micro Secure Content & Threat Management security
solutions portfolio. -- Following closely the certification awarded
to Trend Micro consumer products in the previous quarter, Trend
Micro Client Server Messaging Security 3.6 client was awarded
Microsoft Vista logo certification in March 2007. -- New customers
in the first quarter included: In the United States and Canada -
BJC Healthcare. In Europe -- RDC DATACENTRUM, ICT Center Justice
department, and in China -- TCL Group, DongFeng Automobile Co.,
LTD., China Mobile & Telecom Company FUJIAN Co., Ltd, China
NETCOM(Group)Company Limited Beijing Branch and China Mobile
Company HEBEI Branch Awards -- At the beginning of March 2007,
Channel Reseller News in North America announced the winners of its
CRN 2007 Channel Champions. Trend Micro earned a Channel Champs
award for Program & Support in the Client Security Software
category. -- At the end of March 2007, TechTarget's Information
Security Magazine and SearchSecurity.com announced that Trend Micro
AntiVirus plus AntiSpyware had been awarded the Information
Security Readers Choice Silver Award in the Antimalware category.
Patents Trend Micro was awarded the following patents in the first
quarter 2007: -- U.S. Patent No. 7,188,369, entitled " System and
Method Having an Antivirus Virtual Scanning Processor with Plug-in
Functionalities" covers a computer processor emulator that enables
virus detection instructions to be safely performed in a virtual
environment without exposing virus infection to the host computer.
According to a specific example of the patented technology, the
virtual processor allows polymorphic viruses and compressed viruses
to be safely decrypted and uncompressed, respectively, eliminating
the need to determine the actual encryption or compression
algorithm. This is particularly advantageous as viruses use
encryption and compression schemes that are new and more complex.
Product Trend Micro introduced the following products in the first
quarter 2007: -- Trend Micro InterScan Messaging Hosted Service,
Trend Micro Messaging Security Suite and Trend Micro InterScan
Messaging Security Appliance, designed to provide enterprises a
choice of solution form factor and to extend the security already
available to protect corporate email as messaging threats evolve.
-- Trend Micro ScanMail for Exchange -- the latest version of
ScanMail for Exchange continues to provide businesses proven
protection against a multitude of email-borne threats. The solution
now also includes technology to protect against zero-day attacks,
image spam, and for improved web-threat security it includes
dedicated anti-spyware as well. -- Trend Micro Worry-Free Security
for small and medium-sized businesses - - - updates to Trend Micro
Worry-Free security solutions include the addition of spyware and
rootkit protection, further enhancing the comprehensive,
single-installation security products already available for smaller
organizations. -- TrendProtect and HijackThis -- The acquisition of
popular freeware anti-spyware tool HijackThis complemented the
launch of the beta version of TrendProtect, a new web-reputation
service for consumers available at http://www.trendsecure.com/ . --
Trend Micro Mobile Security 3.0 -- The release of the latest
version of Trend Micro Mobile Security protects users of the latest
Nokia Smartphones against mobile malware while protecting against
unwanted intrusions and data leakage through new firewall and
intrusion detection technologies. 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
Incorporated Trend Micro Incorporated is a pioneer in secure
content and threat management. Founded in 1988, Trend Micro
provides individuals and organizations of all sizes with
award-winning security software, hardware and services. With
headquarters in Tokyo and operations in more than 30 countries,
Trend Micro solutions are sold through corporate and value-added
resellers and service providers worldwide. For additional
information and evaluation copies of Trend Micro products and
services, visit our Web site at http://www.trendmicro.com/ .
Supplementary Information 1. Consolidated Unaudited Results of
Operations for First Quarter Ending March 31, 2007 (US GAAP)
*Figures for the First quarter of 2007 and 2006 are not audited.
Consolidated Results of Operations FY2007 FY2006 Current first
Previous first quarter quarter From January 1, From January 1, 2007
2006 To March 31, To March 31, Growth 2007 2006 Rate Millions of
yen Millions of yen % Net sales 23,252 20,778 11.9 Cost of sales
4,429 3,679 20.4 Operating expenses 12,195 8,570 42.3 Operating
income 6,628 8,529 (22.3) Other income (expenses) 883 348 153.4 Net
income before taxes 7,511 8,877 (15.4) Income taxes 3,185 3,710
(14.1) Minority interest in income of consolidated subsidiaries 0 0
(69.5) Equity in earnings of affiliated companies 21 (22) (196.1)
Net income 4,347 5,145 (15.5) (2) Segment information Net sales to
third parties FY2007 FY2006 Current first quarter Previous first
quarter From January 1, 2007 From January 1, 2006 To March 31,2007
To March 31,2006 Millions of yen Millions of yen Japan 8,538 8,028
North America 5,788 4,819 Europe 5,825 5,124 Asia Pacific 2,379
2,166 Latin America 722 641 Total 23,252 20,778 Deferred Revenue
FY2007 FY2006 As of March 31,2007 As of March 31,2006 Millions of
yen Millions of yen Japan 22,904 18,350 North America 15,960 9,878
Europe 12,849 9,507 Asia Pacific 3,966 2,819 Latin America 1,507
1,324 Total 57,186 41,878 Note: Classification of countries and
regions into each segment. North America: U.S.A. Europe: Italy,
Germany, France, UK, Ireland Asia Pacific: Taiwan, Korea,
Australia, Hong Kong, Malaysia, New Zealand, China, Singapore,
Thailand, India Latin America: Brazil, Mexico (3) Basis of
consolidation The number of consolidated subsidiaries 19 (19 in
overseas) The number of unconsolidated subsidiaries -- (4) Increase
(Decrease) of major assets, liabilities and shareholders' equity As
of March 31, Increase As of December 31, 2007 (Decrease) 2006
Millions of yen Millions of yen Millions of yen (Assets) Cash and
cash equivalents 67,219 (8,978) 76,197 Notes and accounts
receivable, trade -less allowance for doubtful accounts and sales
returns 20,405 481 19,924 Marketable securities and securities
investments 42,273 633 41,640 Goodwill 2,957 (26) 2,983
(Liabilities) Deferred revenue (Total of current and long term)
57,186 4,411 52,775 (Minority interest) Minority interest in
consolidated subsidiaries 9 2 7 (Shareholders' equity) Treasury
stock (15,651) (1,484) (14,167) 2. Projected consolidated earnings
(US GAAP) Projected earnings for the next quarter (April 1, 2007
through June 30, 2007) Net sales Operating income Net income
Millions of yen Millions of yen Millions of yen 2nd Qtr 22,500
5,300 3,000 Note: Since the business environment surrounding Trend
Micro Group tends to fluctuate in the short run, it is difficult to
make the highly reliable projection figures on a yearly basis. We,
therefore, decided to announce the earnings on a quarterly basis in
the fiscal year ending in December 2007 as well as earnings
projection of the succeeding quarter. If we found through our
calculation conducted from time to time that the net sales
fluctuate from the most recent quarterly projection by more than
10%, or operating income or net income fluctuates by more than 30%,
we will announce the revision of the earnings projection. For
additional Information Mr. Mahendra Negi Chief Operating Officer /
Chief Financial Officer / IR Officer Phone: +81-3-5334-4899 Fax:
+81-3-5334-4874 Email: DATASOURCE: Trend Micro, Incorporated
CONTACT: Mahendra Negi of Trend Micro, +81-3-5334-4899, or fax,
+81-3-5334-4874, or Web site: http://www.trendmicro.com/
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