WATCHGUARD TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in 000's, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenues, net
Product $ 16,734 $ 5,497 $ 52,010 $ 17,329
Service 3,192 1,026 8,693 3,290
-------- -------- -------- --------
Total revenues 19,926 6,523 60,703 20,619
Cost of revenues 7,311 2,398 21,919 7,964
-------- -------- -------- --------
Gross margin 12,615 4,125 38,784 12,655
Operating expenses:
Sales and marketing 6,838 3,817 24,213 13,512
Research and development 4,704 2,378 13,900 7,118
General and
administrative 1,895 1,030 6,001 3,646
Stock-based compensation 7,750 229 8,407 926
Amortization of goodwill
and other intangibles 2,724 245 3,828 245
Acquired in-process
technology 4,399 3,381 4,399 3,381
-------- -------- -------- --------
Total operating
expenses 28,310 11,080 60,748 28,828
-------- -------- -------- --------
Loss from operations (15,695) (6,955) (21,964) (16,173)
Interest income, net 1,986 384 6,515 155
-------- -------- -------- --------
Loss before income
taxes (13,709) (6,571) (15,449) (16,018)
-------- -------- -------- --------
Provision for
income taxes 215 -- 215 --
-------- -------- -------- --------
Net loss $(13,924) $ (6,571) $(15,664) $(16,018)
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Net loss per share:
Basic and diluted $ (0.54) $ (0.34) $ (0.66) $ (1.80)
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Shares used in
computation of net
loss per share:
Basic and diluted 25,741 19,367 23,556 8,903
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Pro Forma Information:
(See note below)
Pro forma net income
(loss) $ 949 $ (2,717) $ 970 $(11,466)
Pro forma net income
(loss) per share:
Basic $ 0.04 $ (0.14) $ 0.04 $ (0.69)
Diluted $ 0.03 $ (0.14) $ 0.03 $ (0.69)
Shares used in
computation of pro
forma net income
(loss) per share:
Basic 25,741 19,367 23,556 16,664
Diluted 28,880 19,367 27,779 16,664
Note: Pro forma information is presented for informational purposes
only and is not prepared in accordance with generally accepted
accounting principles. Pro forma results: i) assume the conversion of
all preferred stock to common stock at the time of issuance;
ii) exclude acquired in-process technology costs, and the amortization
of goodwill and other intangibles arising from WatchGuard's
acquisition of BeadleNet, LLC in October 1999 and Qiave Technologies
Corporation in October 2000; and iii) exclude non-cash stock-based
compensation expenses.
WATCHGUARD TECHNOLOGIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in 000's, except share data)
(unaudited)
Dec. 31, Dec. 31,
2000 1999
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 13,837 $ 1,903
Securities available for sale 101,278 24,498
Trade accounts receivable, net 15,271 3,772
Inventories, net 7,026 2,013
Prepaid expenses and other receivables 3,178 1,275
-------- --------
Total current assets 140,590 33,461
Equipment and furniture, net 7,341 1,927
Goodwill, intangibles and other assets, net 47,999 5,923
-------- --------
Total assets $195,930 $ 41,311
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 7,256 2,088
Accrued expenses 4,395 2,362
Deferred revenue 11,874 4,233
Equipment term loan -- 383
-------- --------
Total current liabilities 23,525 9,066
Stockholders' equity 172,405 32,245
-------- --------
Total liabilities and stockholders' equity $195,930 $ 41,311
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Contact:
WatchGuard Technologies
Steve Moore
Executive Vice President
206/521-8340
or
WatchGuard Technologies
Mike McConnell
Chief Financial Officer
206/521-8340
or
StreetConnect
Michael Newman
Investor Relations
206/320-1231 |
