PLANO, Texas & SANTA CLARA, Calif.--(BUSINESS WIRE)--April 2,
2001--ENTRUST (NASDAQ:ENTU.O)
Entrust Technologies Inc. announced today that its results for the
first quarter of 2001 are anticipated to be below the Company's
previously stated expectations.
Entrust Technologies now expects a first quarter 2001 loss from
operations applicable to common shares (a) in the range of $(0.32) to
$(0.34), on first quarter 2001 revenues of $31 million to $32 million.
This is below the Company's previously stated expectations of
operating profits applicable to common shares of $0.01 to $0.02,
excluding acquisition-related costs, and revenues in the range of $50
million to $51 million. The Company expects to report first quarter
financial results after the close of the market on Tuesday, April 24.
"Our first quarter results were affected by a significant
reduction in expected software license sales primarily attributable to
the slowing U.S. economy, which has profoundly impacted Information
Technology project and expenditure plans," said David Thompson,
Entrust Technologies interim Co-President, Co-CEO and CFO. "By the end
of the quarter, the issue had clearly begun to impact budgetary IT
plans outside of North America, affecting our ability to close
software deals globally."
"Given the economic downturn, which appears to be as much global
as North American, the pace with which we were impacted, and most
importantly the lack of clear visibility into the duration and
severity of the downturn, it is not possible at this time to provide
meaningful guidance into Entrust Technologies' financial performance
for the full year 2001," said Thompson.
"We remain optimistic about the long term outlook for the
company", said Alberto Yepez, Entrust Technologies interim
Co-President, Co-CEO and President, Entrust New Ventures. "Trust is
fundamental to doing business on the Internet and our infrastructure
solutions are necessary to ensuring private, personalized
communications and secure transactions. Today, more than a thousand
corporations and government agencies depend on solutions from Entrust.
I fully expect Entrust to emerge from the current economic downturn a
stronger and more agile company."
The company also announced that Mr. Thompson and Mr. Yepez will
hold a conference call to discuss preliminary first quarter 2001
results. The call will begin at 5:00 p.m. EDT on Monday, April 2,
2001.
Webcast: For a listen-only broadcast with Alberto Yepez and David
Thompson, please visit: acttel.com,
conference ID 317936, 15 minutes prior to 5:00 p.m. Eastern on April
2nd to register, download and install any necessary audio software.
This Webcast will be accessible for up to 21 days following the call
on the Entrust Investor Web site: www.entrust.com/investor.
Audio Replay of Teleconference: A replay of our Q1 earnings
teleconference can be heard at the following number: Domestic (800)
405-2236, passcode 317936#, International (303) 590-3000, passcode
317936#, beginning at 7 p.m. Eastern on April 2, 2001, and running
through 11 p.m. EDT on April 23, 2001.
About Entrust Technologies
Entrust Technologies (NASDAQ: ENTU.O) is the leading global provider
of Trust Relationship Management(TM) solutions and managed services
that enable organizations to enhance business relationships by
ensuring private and personalized interactions, thereby providing the
confidence and convenience to securely exchange information and
conduct transactions via web browsers, mobile phones, PDAs and other
internet appliances.
Trust Relationship Management solutions empower organizations
worldwide to rapidly extend innovative e-business services and expand
relationships with millions of customers, employees and partners.
Entrust-based services can instantly confirm the identities of
business counterparts, engage in private and confidential
communications, access personalized portal services, securely pay for
goods anddigitally sign and receive receipts for legally binding
transactions.
(a) Net earnings from operations applicable to common shares is
defined as reported net earnings applicable to common shares before
"Acquisition Related Costs" (acquired in-process R&D and the
amortization of purchased product rights, goodwill and other
intangibles), utilizing a 30% effective tax rate.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to the Company's projected first quarter 2001
revenues and loss from operations. There are a number of important
factors that could cause actual results to differ materially from
those indicated by such forward-looking statements. These factors
include, without limitation, the risk factors detailed from time to
time in Entrust Technologies' periodic reports and registration
statements filed with the Securities and Exchange Commission,
including without limitation Entrust Technologies' Annual Report on
Form 10-K for the year ended December 31, 2000.
Entrust is a registered trademark of Entrust Technologies Inc. in
the United States and other countries. In Canada, Entrust is a
registered trademark of Entrust Technologies Limited. All Entrust
product names are trademarks of Entrust Technologies. All other
company and product names are trademarks or registered trademarks of
their respective owners.
--30--dsp/in*
CONTACT: Entrust Technologies
David Thompson, 972/943-7330
E-mail: david.thompson@entrust.com
Website: www.entrust.com
or
Entrust Technologies
David Rockvam, 972/943-7324
E-mail: david.rockvam@entrust.com
or
Entrust Technologies Inc.
Patricia Pane, 408/222-7832
E-mail: patricia.pane@entrust.com
or
Blanc and Otus
Sean Gibson, 415/912-2353
E-mail: sgibson@blancandotus.com
KEYWORD: TEXAS CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS CONFERENCE CALLS EARNINGS
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