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Certicom Reports Third Quarter Revenue of $3.0 million

Friday 4 March 2005 15:01 CET | News

Certicom has reported third quarter revenue for fiscal 2005 of $3.0 million compared to $2.1 million in the third quarter of fiscal 2004. In the second quarter of fiscal 2005, the company reported revenues of $2.6 million.

Operating expenses(1) were $3.5 million, in line with previously provided guidance of $3.3 to $3.6 million for the period, compared to operating expenses of $3.0 million in the third quarter of last year. The increase in year-over-year operating expenses reflects the companys increasing investment in support of the intellectual property licensing strategy. In the second quarter of fiscal 2005, operating expenses were $3.4 million. The company posted an EBITDA(2) loss of $0.6 million, compared to a loss of $0.9 million in the same period last year. In the second quarter of fiscal 2005, the company posted an EBITDA loss of $0.8 million. The net loss on a GAAP basis for the quarter was $0.9 million, or $0.02 per basic and diluted share. In the same period last year, the net loss was $1.8 million, or $0.05 per basic share and diluted share. Certicom had $27.5 million in cash(3) at January 31, 2005 compared to $29.1 million at October 31, 2004 and $36.5 million at April 30, 2004. Nine Month Financial Review For the first nine months of fiscal 2005, Certicom reported revenue of $8.5 million, compared to $7.0 million, excluding the NSA contract, in the same period last year. Including revenues from the NSA contract, revenues in the same period for fiscal 2004 were $31.9 million. Operating expenses(1) for the period were $10.2 million compared with operating expenses of $8.6 million (excluding incremental expenses resulting from the NSA contract) for the first nine months of fiscal 2004. Including the NSA contract related expenses, for the first nine months of fiscal 2004 operating expenses were $9.8 million. The company posted an EBITDA(2) loss of $1.8 million in the first nine months of fiscal 2005, compared to an EBITDA loss of $1.6 million, excluding the revenue gains and incremental expenses triggered by the NSA contract, in the same period last year. The companys EBITDA in the first nine months of fiscal 2004 including the revenue gain and incremental expenses triggered by the NSA contract in the second quarter last year was $22.1 million. The company posted a net loss on a GAAP basis of $3.1 million, or $0.08 per basic and diluted share for the first nine months of fiscal 2005, compared with net income, including earnings from the NSA contract, of $18.9 million, or $0.56 per basic share and $0.53 per diluted share, in the same period last year. Third Quarter Operational Highlights - General Dynamics C(4) Systems, a business unit of General Dynamics, licensed Certicoms entire intellectual property portfolio of over 300 patents and patents pending. This 15-year agreement allows General Dynamics to use ECC and other related patents from Certicom as the public-key security technology in any of its products for the commercial and defense sector. - Announced Security Builder NSE a cryptographic toolkit that enables organizations to build applications that meet the NSA guidelines to protect mission critical national security information. This toolkit includes the technology that was part of the 26 patents licensed by the NSA in 2003 plus proven, optimized implementations backed by Certicom. - Extended its Certicom Security Architecture(TM), enabling developers to embed government-mandated security into devices and applications, and giving them access to the lucrative government market. Certicom Security Architecture for Government also provides developers with an efficient way to enhance new and existing applications with ECC to meet the NSA guidelines. - Two Certicom executives received awards for their work in advancing ECC. Scott Vanstone received the prestigious University of Waterloo Award for Excellence in Research and Tony Rosa


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Categories: Payments & Commerce | Payments General
Countries: World
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