Take a look at this software company's results,...but I warn you, you may want to get close to a toilet. I am not negative on Certicom, I own some shares,...or should I say some tulip bulbs. I also own SUF,...a company with earnings that far exceed this companies earnings.
But what the hell do I know,...I'm just a squished hamster.
Certicom second quarter results
Certicom Corp CIC
Shares issued 11,497,301 Nov 30 close $46.00
Wed 1 Dec 99 News Release
Mr. Philip Deck reports
Certicom, a leading provider of next-generation encryption technology, has
released its results for the second quarter ended Oct. 31, 1999. For the
three months ended Oct. 31, 1999, revenue was approximately $2.6-million
(U.S.), a 22-per-cent increase over revenue of approximately $2.1-million
(U.S.) reported in the quarter ended July 31, 1999. This also represents a
196-per-cent increase over revenue reported of approximately $0.9-million
(U.S.) in the same period in 1998.
Certicom's second quarter performance was supported by growth in all
aspects of the company's OEM business, which supplies SSL and ECC
encryption software and hardware, and security consulting and integration
services, to manufacturers of wireless software and hardware systems,
hand-held information appliances, and enterprise e-business systems.
Partner-licensing revenue also contributed to revenue.
"We are very pleased to report another quarter of strong revenue growth,"
said Philip C. Deck, chairman and chief executive officer of Certicom.
"Both our financial performance and our marketshare growth remain firmly on
track."
"Demand continues to be strong across all key market sectors, especially
the wireless market segment," said Rick Dalmazzi, president of Certicom.
"Our 'built-in' OEM security products continue to be widely implemented by
a growing number of existing and new business partners."
The operating loss for the second quarter of fiscal year 2000 was
approximately $1.6-million (U.S.), or 14 cents per share, compared with a
$1.7-million (U.S.) loss (15 cents per share) for the first quarter of
fiscal year 2000 and a $2.3-million (U.S.) loss (22 cents per share) for
the second quarter of the 1999 fiscal year. With the inclusion of interest
income, depreciation and amortization, and income taxes, the net loss for
the three-month period ended Oct. 31, 1999, was $5.13-million (U.S.) (49
cents per share), versus $5.6-million (U.S.) (53 cents per share) for the
three-month period ended Oct. 31, 1998. The second quarter net loss
includes good will and amortization charges of approximately $3.7-million
(U.S.).
At the end of the second quarter of the 2000 fiscal year, the company had a
working capital position of approximately $10.5-million (U.S.), including
cash and marketable securities of approximately $7.6-million (U.S.). As at
Oct. 31, 1999, Certicom had 10,997,561 shares outstanding.
Effective May 1, 1999, the company adopted the U.S. dollar as its reporting
and functional currency. Accordingly, historical figures previously
reported in Canadian dollars were translated to U.S. dollars using the
exchange rate in effect on April 30, 1999. Commencing May 1, 1999, monetary
assets and liabilities denominated in currencies other than the U.S. dollar
are translated into U.S. dollars at the rate of exchange prevailing at
year-end, while other balance sheet items are translated at historic rates.
Revenue and expense items are translated at the rate of exchange in effect
on the transaction dates. Realized as well as unrealized foreign exchange
gains and losses are included in income in the year in which they occur.
New licencees
During the second quarter, Certicom's sales and business development team
successfully closed multiple new agreements in many key target market
segments. These included content protection, wireless network
infrastructure (including WAP proxy servers and browsers, and wireless
middleware), enterprise messaging, smart cards and enterprise e-business
software.
The Company also saw a rise in "solutions sales." In Q2, numerous Certicom
customers licensed a combination of technology and professional services
products.
In Q2, Certicom announced licencing agreements with Hewlett-Packard (which
is adding Certicom's SSL Plus technology to multiple HP OpenView network
management and storage management products) and Schlumberger, to enable
secure GSM cellular phone applications and financial transactions.
Additionally, the company announced that JP Systems will be using Certicom
encryption to develop secure wireless E-mail and electronic commerce
applications for hand-held computers and mobile phones. Certicom also
announced a strategic relationship with AT&T, whereby AT&T may supply
Certicom customers with RSA encryption technology, for purposes of
interoperability with back-end, legacy systems.
New products
Q2 also marked the release of SSL Plus 3.0, a comprehensive suite of SSL
products designed for developers who want to quickly implement SSL security
and get their e-business products to market faster. At the 1999 Palm
Computing Developer Conference, Certicom also announced its participation
in the Mobile Application Link, a group devoted to developing a standard
open software protocol for connecting mobile and wireless devices to
server-based applications. Additional MAL members include: Puma Technology
Inc., Aether Systems Inc., Attachmate Corp. and AvantGo Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Oct. 31
(in thousands of U.S. dollars)
1999 1998
Sales $ 2,612 $ 882
Cost of sales 166 12
------ ------
2,446 870
Expenses
Research and
development 766 964
Selling and marketing 1,848 1,665
General and
administrative 1,395 973
Scientific research
tax credits - (406)
------ ------
4,009 3,196
------ ------
Loss before interest,
taxes, depreciation
and amortization (1,563) (2,326)
Interest income 49 322
Depreciation and
amortization (3,773) (3,351)
------ ------
Loss before income
taxes (5,287) (5,355)
Income taxes (56) (243)
------ ------
Net (loss) for the
period $(5,343) $(5,598)
====== ======
Net loss per
share (49 cents) (53 cents)
CONSOLIDATED STATEMENT OF OPERATIONS
Nine months ended Oct. 31
(in thousands of U.S. dollars)
1999 1998
Sales $ 4,760 $ 1,434
Cost of sales 175 29
------ ------
4,585 1,405
Expenses
Research and
development 1,548 1,728
Selling and marketing 3,442 3,209
General and
administrative 2,848 1,781
Scientific research
tax credits - (406)
------ ------
7,838 6,312
------ ------
Loss before interest,
taxes, depreciation
and amortization (3,253) (4,907)
Interest income (21) 770
Depreciation and
amortization (7,494) (3,675)
------ ------
Loss before income
taxes (10,768) (7,812)
Income taxes (134) (251)
------ ------
Net (loss) for the
period $(10,902) $(8,063)
====== ------
Net loss per
share ($1.00) (77 cents)
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
