Aladdin Knowledge Systems Reports Record First Quarter 2004 Financial Results: Revenues Increase 28% Year-Over-Year and Diluted EPS Increases 367%
NEW YORK and TEL AVIV, Israel, April 21 /PRNewswire-FirstCall/ -- Aladdin Knowledge Systems (Nasdaq: ALDN - News), a leader in digital security providing solutions for software digital rights management and Internet security, today announced financial results for the first quarter of fiscal 2004 ended March 31, 2004.
Revenues for the first quarter were $16.87 million, a 28 percent increase over revenues of $13.17 million for the first quarter of 2003, driven by expanded market penetration across Aladdin's security software and enterprise software product lines. Sequentially, revenues increased 12 percent from the $15.09 million reported in the fourth quarter of 2003.
Aladdin recorded first quarter 2004 net income of $1.75 million, or $0.15 per basic share and $0.14 per diluted share, compared with a net income of $311,000, or $0.03 per basic and diluted share for the first quarter of 2003.
Cash, cash equivalents and marketable securities totaled $23.75 million at March 31, 2004, an increase of $4.23 million over the $19.52 million held at the end of the fourth quarter of 2003.
Yanki Margalit, Chairman and CEO of Aladdin Knowledge Systems, said, "I am very pleased with our exceptional results, as we exceeded our expectations and experienced the strongest quarter in Aladdin's history. We continue to gain share worldwide in our core software digital rights management and Internet security markets."
Financial and Operating Highlights
-- Operating Results: Aladdin posted its third consecutive quarter of
sequential revenue growth.
-- Cash Flow: Positive first quarter 2004 cash flow totaled $3.96
million, increasing cash and cash equivalents held at quarter end to
$22.25 million.
-- Profitability: The first quarter of 2004 marked the fifth sequential
quarter with increased profitability.
-- Deferred revenues: Increased 15 percent to $3.93 million for the first
quarter of 2004. This positive shift is due to the sequential growth
in our enterprise security sales.
-- Aladdin establishes the Company's tenth worldwide office and second in
the Asian region, expanding the Company's presence in the Chinese
market.
Product Highlights
-- Software Security (DRM)
-- Privilege Software Commerce Platform named as finalist in the Best
Digital Rights Management Solution category at the SIIA's 19th
annual Codie awards being announced in May 2004.
-- Privilege Software Commerce Platform chosen to securely distribute
software digitally for Dutch software company, DISC Electronic
Media Distribution. DISC EMD's portal is the first in Benelux to
feature such powerful security.
-- Privilege Trialware Toolkit launched, allowing vendors to quickly
and affordably generate try-and-die versions of their software
products.
-- Network enabled software rental capabilities included within the
HASP software protection, anti-piracy and software licensing
solution.
-- eSafe(R) Integrated Proactive Content Security Solution
-- Aladdin eSafe integrated content security solution wins 2004
Software Development magazine Security Tools Productivity Award.
-- Aladdin eSafe wins highest honor in the Malicious Code Protection
category from 01 Reseaux, a leading French IT publication.
-- Launched latest version of eSafe(R) with new, innovative
AppliFilter(TM) technology that blocks the ever-growing number of
blended threats through integrating the application filtering
technology in a gateway-based content security solution.
-- Aladdin eSafe reports full proactive protection against the MyDoom
worm.
-- eToken(TM) User Authentication Solution
-- Aladdin unveils world's first-ever USB smartcard token with one-
time password functionality at the 2004 RSA conference in February
2004.
-- VeriSign chooses eToken NG with One-Time Password for its strong
authentication platform field testing.
-- Aladdin announces partnership integrating its eToken
authentication device with Utimaco's SafeGuard PrivateDisk
solution.
-- Aladdin eToken supports Citrix MetaFrame presentation server and
MetaFrame secure access manager, allowing organizations using
Citrix products to implement eToken for authentication of local
and remote users.
For further information on product highlights, please refer to the press room on the Company's website which can be found at ealaddin.com .
Future Business Outlook
Aladdin continues to provide a business outlook on a quarterly basis. The Company undertakes no obligation to update its estimates. Based on current business activities and general economic conditions, Aladdin management believes revenues for the second quarter of 2004 will be in the area of $15.60 million to $16.10 million and basic and diluted earnings per share are expected to be in the range of $0.12 to $0.15. For comparison, the Company reported $13.01 million in revenue and $0.05 per share for the second quarter of 2003. |
