IREG (+5 @ $41) Quarterly Revenue Doubles--Growth Drives Net Income of $.26/share
BALTIMORE--(BUSINESS WIRE)--Oct 17, 2000-- Information Resource Engineering, Inc. (IRE) (Nasdaq: IREG - news), a leading provider of Virtual Private Network (VPN) technology and solutions for secure business communications, today reported financial results for the three months ended September 30, 2000. Revenues for the three-month period grew by 102% to $7.6 million, compared to $3.8 million for the same period in 1999. Net income for the three-month period was $1,873,000, or $0.26 per share on a diluted basis, compared to a loss of ($1,593,000), or ($0.29) per share, in 1999.
The revenue increase was spurred by growth in sales of VPN products, which increased 395% this quarter compared to the same period in 1999. The Company's sales reflect a shift to higher-margin software and license products through OEM partners resulting in a significant improvement in gross margins from 61% in the third quarter of 1999 to 74% in the third quarter of 2000.
Revenues for the first nine months totaling $19.9 million were 38% higher than revenues in the first nine months of 1999, and resulted in earnings per share of $.43 per share on a diluted basis compared to a loss of ($.45) per share for the first nine months of 1999. Sales of VPN products increased by 193% for the nine months ended September 30, 2000 compared to the nine months ended September 30, 1999. Gross margins for the nine months ended September 30, 2000 increased to 73% from 64% for the comparable period in 1999 due to increased sales of VPN software and license products through OEM partners.
Anthony Caputo, IRE's Chairman and CEO commented, ``IRE's revenue growth and profitability are being driven by the market success of our SafeNet VPN products. VPN revenue growth of 395% in the quarter clearly demonstrates SafeNet VPN products rapid adoption by customers and partners in the fast growing VPN market.''
VPN product revenues grew through both end user and OEM channels during the quarter. In the end user segment, new customers include a U.S. Government agency, which placed a significant order for SafeNet VPN products. The U.S. Department of Defense also formally approved SafeNet products for use in battlefield applications.
In the OEM segment, new OEM customers include a major Internet Service Provider who has licensed SafeNet/Soft-PK to be used by each of its VPN service customers. In addition, several network security companies, including VPN product manufacturers, licensed SafeNet/Soft-PK so that they may provide IRE's industry-leading VPN software to their customers.
A new hardware implementation of SafeNet technology, SafeNet/PCI was introduced during the quarter. Two major networking companies began to order this product in OEM quantities, also contributing to revenue growth in the quarter.
The Company's SafeNet/Soft-PK VPN software received top recommendations for its technology offering in product reviews from two leading technical publications, InfoWorld and SC Magazine. InfoWorld highlighted the product's interoperability, compatibility and advanced features. SC Magazine gave SafeNet/Soft-PK its Recommended Award in a review of twelve VPN solutions for demonstrating outstanding performance, rich features and ease-of-use.
``I'm also pleased to announce that our company name will officially change to SafeNet, Inc. on November 1, 2000, reflecting our commitment to Internet security as well as the success of SafeNet products in the marketplace,'' said Anthony Caputo.
Effective November 1, 2000, the new ticker symbol for SafeNet, Inc. will be SFNT. Effective the same date, the SafeNet Web site will be www.safenet-inc.com . IRE's current Web site, www.ire.com will be linked directly to the new site.
About SafeNet/IRE
SafeNet/IRE (Nasdaq: IREG - news) delivers cost-effective Virtual Private Network (VPN) solutions that enable organizations to use the Internet and other shared networks for private communications. SafeNet/IRE, the developer of the first commercial VPN in 1989 and the first Internet VPN solution in 1995, specializes in offering integrated, standards-based VPN technology and products as part of its SafeNet(tm) product family. The SafeNet DSP(tm) ``Internet Security System on a Chip,'' with over ten patents pending, is a breakthrough addition, not only to IRE's family of SafeNet products, but for all network and telecommunications equipment manufacturers who have been searching for a way to increase the performance and decrease the cost of implementing and embedding a VPN solution. A publicly held company since 1989, SafeNet/IRE has been providing industry-leading network security solutions around the world for over 15 years. Our global client list includes companies from the leading Fortune 1000 companies, financial institutions, and governments. Our commitment to providing leading-edge technology, quality design and manufacture, and around-the-clock customer support is unsurpassed in the network security industry. For more information, please visit us at www.ire.com.
``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995
Statements in this release concerning IRE's future prospects are ``forward-looking statements'' under the Federal securities laws. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts, estimates, and summary information contained in this news release. Important factors that could cause actual results to differ materially are included but are not limited to those listed in IRE's periodic reports and registration statements filed with the Securities and Exchange Commission.
SafeNet is a trademark of Information Resource Engineering, Inc. All other product and company names mentioned herein may be the trademarks of their respective companies. |
