WatchGuard Announces Record Revenue
Year-Over-Year Sales Increase 205%
Third Consecutive Quarter of Profitability
SEATTLE--(BUSINESS WIRE)--Feb. 7, 2001--WatchGuard Technologies, Inc. (Nasdaq:WGRD - news), a leading provider of comprehensive Internet security solutions, today announced its financial results for the quarter and year ended December 31, 2000.
For the fourth quarter of 2000, WatchGuard reported net revenues of $19.9 million, an increase of 205% from $6.5 million in the fourth quarter of 1999, and up 16% sequentially from $17.2 million in the prior quarter. Pro forma net income for the fourth quarter, excluding acquisition related costs and non-cash stock-based compensation, was $949,000 or $0.03 per diluted share, up from a pro forma net loss of $2.7 million or ($0.14) per share for the same period of 1999.
Product sales were $16.7 million for the quarter, an increase of 204% from $5.5 million in the fourth quarter of 1999, and a 13% sequential increase from $14.8 million in the prior quarter. Service subscription revenues were $3.2 million for the quarter, an increase of 211% from $1.0 million in the fourth quarter of 1999, and a 30% sequential increase from $2.5 million in the prior quarter. For the fourth quarter of 2000, international sales represented 55% of total revenue.
For 2000, WatchGuard reported net revenues of $60.7 million, up 194% from 1999 revenues of $20.6 million. Pro forma net income for 2000 was $970,000 or $0.03 per diluted share, compared to a pro forma net loss of $11.5 million or ($0.69) per share in 1999. As of December 31, 2000, WatchGuard had cash and securities of $115.1 million.
During the fourth quarter, WatchGuard continued to enhance its security technology and services, strengthen its worldwide brand presence and enterprise distribution channel, and advance its global presence in the service provider marketplace. The Company recently announced:
Its new VPN Manager 2.0 software and ``Instant VPN'' technology for simplifying the complex task of setting up multi-site VPNs.
InternetWeek selected WatchGuard's LiveSecurity System as one of the ``Top Ten Products of 2000'' and as ``Best of Breed'' for outperforming other firewall appliances.
VIA NET.WORKS will utilize WatchGuard technology as a core component of their VIA Security firewall and VPN service to over 140,000 customers in Europe, Latin America and the U.S.
Fiberlink, a leading provider of virtual private networks, is now offering a secure DSL service using WatchGuard's software and Firebox SOHO security appliances.
The acquisition of Qiave Technologies and its integration into WatchGuard. ServerLock, the first Qiave product to be shipped, expands WatchGuard's security software technology to protect Web and application servers from hackers targeting public content residing behind or on the DMZ of any network firewall.
ServerLock received SC Magazine's highest product rating and was cited as one of the easiest applications to manage among enterprise security suites.
WatchGuard continued to strengthen its global brand presence through further development of its enterprise distribution channel. New distribution partners were signed in the United States, Mexico, Germany, the United Kingdom, Finland, Norway, Spain, Austria, Italy, Switzerland, Singapore, and Hong Kong. WatchGuard now has distribution in over 60 countries.
WatchGuard also continued to advance its worldwide presence in the service provider marketplace. The Company signed new agreements with service providers to deliver WatchGuard-based products and managed services in the United States, the United Kingdom, Germany, Italy, Japan, Singapore, and Australia.
``2000 was a great year for WatchGuard and we are very pleased with the execution of our strategy on many fronts,'' said Christopher Slatt, President and Chief Executive Officer. ``We had record sales with growth across all of our product lines and continued profitability. We see increased deployment of our solution by businesses and Internet service providers throughout the world. We offer a powerful approach to security that combines technological breadth and ease of management for every business, from small offices with a DSL connection to large Internet distributed enterprises with ultra-high-speed global networks.''
``Moving into 2001, we continue to see the growth of the Internet security market worldwide. Our international sales and marketing presence continues to be a source of strength. We continue to execute our business strategy and the worldwide rollout of our new ServerLock product line, which extends network security behind the firewall. With our broadening suite of enterprise security products and services, strong cash position and robust worldwide market, we expect continued sales growth and increasing profitability in 2001 and beyond.''
An Internet broadcast of WatchGuard's fourth quarter conference call will be available today (2:00pm PST/5:00PM EST) at www.watchguard.com/about/financialreleases.asp or by calling 800/252-8295 (Conference ID No. 17573921). A replay will be available by calling 800/633-8284 or at www.watchguard.com/about/financialreleases.asp
About WatchGuard Technologies, Inc.
WatchGuard Technologies, Inc. (Nasdaq:WGRD - news) is a leading provider of dynamic, comprehensive Internet security solutions designed to protect enterprises that use the Internet for e-business and secure communications. WatchGuard is a pioneer in the creation of plug-and-play Internet security appliances and offer solutions for any size organization -- from large enterprises with geographically dispersed offices and telecommuting employees, to home offices with a single broadband connection. WatchGuard's innovative LiveSecurity Service enables organizations and users to update their security systems through WatchGuard's broadcasts of threat responses, software updates, information alerts, expert advisories, support flashes, and virus alerts over the Internet. For more information, please call 206/521-8340 or visit the corporate website at www.watchguard.com.
Certain statements in this press release are ``forward-looking statements'' within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect WatchGuard's actual results include, but are not limited to, the ``Factors Affecting Our Operating Results, Our Business, and Our Stock Price'' described in our quarterly report on Form 10-Q for the quarter ended September 30, 2000, and in our Securities and Exchange Commission filings from time to time. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release.
WatchGuard®, LiveSecurity(TM), and Qiave® are trademarks or registered trademarks of WatchGuard Technologies, Inc. in the United States and other countries. Firebox and ServerLock are trademarks of WatchGuard Technologies, Inc. |
