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1.7 million rev and -.34 per share any comments?
Company Press Release
SOURCE: Certicom Corp.
Certicom Reports Third Quarter Results
Revenue Increases 559% Over Same Period in 1998
TORONTO, March 9 /CNW-PRN/ - Certicom Corp., a leading provider of next-generation encryption technology for
Internet information appliances and electronic commerce systems, today announced financial results for its third fiscal
quarter, which ended January 31, 1999. Total revenues for the third quarter were approximately C$1.7 million, up
559% from C$0.25 million in the same period in fiscal 1998 and up 32% from C$1.3 million in the previous quarter.
Certicom's revenue growth was driven by increased demand for its original equipment manufacturer (OEM) security
products and services. Licensing of Certicom's elliptic curve cryptographic toolkits increased and the new Security
Integration Services unit contributed revenues from consulting and custom development.
''We are satisfied with our continued quarter over quarter revenue growth,'' said Philip C. Deck, chairman and CEO of
Certicom. ''In Q3, we completed the integration of our existing professional services staff with the newly acquired
Uptronics organization under Jimmy Upton, Certicom's new vice president, sales and integration services. Our services
division is becoming the engine of growth for licensing revenue.''
''Certicom signed several new licensees and partners in Q3 and made significant progress helping our customers ship
products enabled with our technology,'' said Rick Dalmazzi, president of Certicom. ''Additionally, we achieved a
significant milestone with the adoption of ANSI X9.62. This important standard enables widespread deployment of
Certicom's technology throughout the financial services industry.''
The operating loss for the quarter was approximately C$3.7 million (C$0.34 per share) compared to approximately
C$3.4 million (C$0.39 per share) for the same period in fiscal 1998. After interest income, depreciation and
amortization, and income taxes, the loss for the period was approximately C$8.8 million compared to C$3.4 million for
the same period in fiscal 1998. Loss per share was C$0.81 for the three-month period ended January 31, 1999, as
compared to C$0.38 for the three-month period ended January 31, 1998.
The Company has a strong working capital position of approximately C$27 million, including cash of approximately
C$26 million. At the end of its third quarter, Certicom had 10,903,880 shares outstanding.
New Licensees
During the third quarter, Certicom completed licensing agreements with BellSouth Wireless Data (enabling the ''Instant
Broker'' service from Fidelity Investments) and Newcom Technologies, to secure wireless electronic commerce
transactions and financial data services between merchants, financial institutions, and consumers via 2-way pagers and
GSM cellular phones. Certicom also announced that its SSL technology would be used by leading set-top box
manufacturers Philips Electronics, Neon, and MTX to enable secure electronic commerce transactions. Certicom also
extended its commitment to securing Palm Computing and Windows CE handheld computers, by licensing its Security
Builder product to Advance Systems, a leading provider of mobile connectivity solutions for enterprise computing. Most
recently, Certicom announced sales of ECC-enabled SSL Plus to LPL Financial Services and Sterling Commerce for
secure FTP transmission of financial information.
New Products
Q3 also marked the release of several new SSL and cryptographic security products. At the Palm Computing
Developer Conference, Certicom announced the availability of SSL Plus for the Palm Computing Platform. Developers
can now build a secure Internet channel to enterprise applications from Palm Computing Platform-based handheld
computers. The Company also released the Smart Card Evaluation Toolkit, which provides developers with a
comprehensive set of tools to evaluate and implement strong, fast, and cost-effective elliptic curve cryptography (ECC)
into a variety of smart card-based solutions.
New Services
During Q3, Certicom announced the formation of its Security Integration Services Group, a team comprised of existing
and new Certicom employees gained from the acquisition of Uptronics, Inc. in November 1998. This group
complements Certicom's industry leading cryptographic products and serves as the leading edge of Certicom's
full-service security offerings.
New Standards
Q3 was an important quarter for Certicom's ECC standards efforts. ANSI X9.62 was approved, enabling fast, efficient,
and interoperable elliptic curve digital signatures across the financial services industry. Certicom also announced the
formation of the Standards for Efficient Cryptography Group (SECG), devoted to addressing the problems of
interoperability and performance that are common to today's different cryptographic systems. Members of the SECG
include 3Com, American Express, Fujitsu, Hewlett-Packard, Hitachi, Motorola, Pitney-Bowes, Sun Microsystems,
Visa and others.
About Certicom
Certicom is a leading provider of next-generation encryption technology used to build strong, fast, and efficient security
solutions. Major computing and communications companies, such as 3Com/Palm Computing, BellSouth Wireless Data,
Motorola, Pitney Bowes and VeriFone, incorporate Certicom's technology into electronic commerce software, wireless
messaging applications, and smart cards. With its recent acquisition of Consensus Development Corp. and Uptronics
Incorporated, Certicom is the only source for a complete range of OEM security products and services, including
cryptographic toolkits, custom implementations, and security integration services and consulting. Certicom's worldwide
sales and marketing operations are based in San Mateo, Calif., with cryptographic research and product development in
Toronto, Canada. Certicom shares are traded on the Toronto Stock Exchange under the symbol ''CIC.'' For more
information, visit Certicom's Web site at certicom.com.
This press release may contain forward-looking statements relating to revenue growth and acceptance of Certicom's
technology. Among the important factors that could cause actual results to differ materially from those indicated by such
forward-looking statements are delays in product development, undetected software errors, competitive pressures,
technical difficulties, market acceptance, changes in customer requirements and general economic conditions.
SOURCE: Certicom Corp. |
