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Entrust Revenue grow 8% in First Quarter 2005

Wednesday 27 April 2005 09:52 CET | News

Entrust, has reported revenue for the first quarter of $24.9 million, an increase of 8% from $23.0 million in Q1, 2004. Revenue in the first quarter was driven by product revenue, which increased 11% from Q1, 2004.

Revenue declined 8% from $27.1 million in Q4, 2004 based on seasonal product revenue patterns. Entrust recorded Q1, 2005 pro forma net income of $1.2 million, or $0.02 per share, compared to Q1, 2004 pro forma net income of $0.5 million, or $0.01 per share, and Q4, 2004 pro forma net income of $2.8 million, or $0.04 per share. Entrust recorded Q1, 2005 net income in accordance with GAAP of $1.0 million, or $0.02 per share, compared to Q1, 2004 net income of $0.5 million, or $0.01 per share, and Q4, 2004 net income of $2.6 million, or $0.04 per share. The pro forma (non-GAAP) net income figures exclude approximately $195 thousand of purchased intangibles amortization in cost of goods sold and approximately $40 thousand of amortization of intangible assets in operating expenses. Entrust also generated approximately $3.0 million in positive cash flow from operations in Q1, 2005 and increased its total cash balance to $100.2 million. Business and Financial Metrics: First Quarter, 2005 * Revenues of $24.9 million consisted of 32% product ($8.1 million) and 68% services and maintenance ($16.8 million). Product revenue increased 11% from Q1, 2004 and decreased 26% from Q4, 2004 due to seasonal product revenue patterns. * Extended Government accounted for 68% ($5.5 million) and Extended Enterprise accounted for 32% ($2.6 million) of the product revenue in the quarter. Government product revenue exceeded Enterprise product revenue for the first time in eight quarters and highlights the revenue diversity and vertical balance achieved over the last two years. * The top five product transactions accounted for 15% of Q1, 2005 revenues. There were two product deals over $1 million. The average purchase size this quarter was $106,000, up from $103,000 in Q1, 2004 and down from $127,000 in Q4, 2004. Total transactions in Q1, 2005 reached 64, which is up from 62 in Q1, 2004, and down from 75 in Q4, 2004. Fifteen of the transactions were from new customers, up 36% from 11 in Q1, 2004. Over 10% of total transactions were from Entrusts target product areas of Entrust IdentityGuard, Secure Messaging and Compliance. * Entrust Secure Identity Management Solutions accounted for 77% ($6.2 million) of product revenue, and increased 77% ($2.7 million) from Q1, 2004 and decreased 19% ($1.4 million) from Q4, 2004. Entrust Certificate Services revenues, a component of Entrusts Secure Identity Management solutions suite, increased 40% over Q1, 2004 and 1% over Q4, 2004. This is Entrust Certificate Services 10th consecutive quarterly increase in revenue. The company had 3 new Entrust IdentityGuard customers in the quarter. * Entrust Secure Messaging Solutions accounted for 14% ($1.2 million) of product revenue, and increased 194% ($800 thousand) from Q1, 2004 and decreased 52% ($1.3 million) from Q4, 2004. The company had 2 new Entrust Compliance Server customers in the quarter. * Entrust Secure Data Solutions accounted for 9% ($700 thousand) of product revenue, and decreased 79% ($2.6 million) from Q1, 2004 and 18% ($170 thousand) from Q4, 2004. * Entrust services revenue was $16.8 million, an increase of 7% from Q1, 2004 and an increase of 4% from Q4, 2004. This was the companys highest services revenue attainment in three and a half years. The increase was driven by the companys second highest ever support and maintenance revenue and 3rd party hardware. * Deferred revenue set a new company record at $25.5 million, which is an increase of 29%


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Categories: Payments & Commerce | Payments General
Countries: World
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