Security Dynamics Reports Annual and Fourth Quarter Results
January 28, 1999 04:05 PM
BEDFORD, Mass., Jan. 28 /PRNewswire/ -- Security Dynamics Technologies, Inc. SDTI today reported financial results for the fourth quarter and year ended December 31, 1998. Revenue for the fourth quarter of 1998 increased 14% to $46.9 million, from $41.1 million for the fourth quarter of 1997. Excluding certain non-operating and one-time items, earnings for the quarter were $3.3 million ($0.08 per share on a diluted basis) compared to $7.1 million ($0.17 per share on a diluted basis) for the same period in 1997.
The reported net income for the fourth quarter of 1998 was $12.6 million ($0.30 per share on a diluted basis), compared to $4.0 million ($0.10 per share on a diluted basis) for the fourth quarter of 1997. Revenue for the year ended December 31, 1998 increased 22% to $171.3 million, from $140.6 million reported last year. Excluding certain non-operating and one-time items, net income decreased 19% to $19.0 million ($0.45 per share on a diluted basis) compared to $23.6 million ($0.58 per share on a diluted basis) in 1997.
The reported net income for the year ended December 31, 1998 was $29.4 million ($0.69 per share on a diluted basis). This compares to a reported net income of $17.0 million ($0.42 per share on a diluted basis) for the year ended December 31, 1997.
The fourth quarter results include additional, unplanned commission expenses of $2.6 million or $0.04 per share related to sales compensation plans completed in Q4. Consistent with stated objectives to renew focus on core product lines, in the second half of 1998, the Company revised compensation plans to drive revenue. The mix of sales in the channel, international and service provider areas far exceeded expectations, thus accounting for the additional commission expense and resulting impact on fourth quarter earnings per share.
"We are very pleased with our record revenue performance in the fourth quarter, as both Security Dynamics and RSA finished the year strong," said Charles Stuckey, chairman, president and CEO of Security Dynamics. "We look forward in 1999 to increased market penetration of our SecurID authentication products, as well as the success of our new Keon PKI-based product family and new RSA Australia subsidiary."
As a result of the merging of Security Dynamics and RSA operations around the Keon product line, the company plans to take restructuring and other related charges of $5 million to $7 million in the first quarter.
About Security Dynamics
Security Dynamics Technologies, Inc. is a leading provider of enterprise network and data security solutions that help companies conduct business securely, protect corporate information assets and facilitate business-to-business electronic commerce. With more than 4 million users of its SecurID(R) authentication technology, Security Dynamics is the world leader in two-factor user identification and authentication. RSA Data Security, Inc., a wholly owned subsidiary of Security Dynamics, is a leading supplier of software components that secure electronic data, with more than 400 million of copies of RSA encryption and authentication software and technologies installed worldwide. RSA technologies are part of existing and proposed standards for the Internet and World Wide Web, ISO, ITU-T, ANSI, IEEE, and business, financial and electronic commerce networks around the globe. Security Dynamics and RSA can be found on the World Wide Web at securitydynamics.com and rsa.com, respectively.
|
