CL:
With all due respect I have no idea where you got that site and how that site got their numbers put together!
Here is what the company reported to SEC in their last earnings report and I prefer to go by their report: sec.yahoo.com
CYBERGUARD CORP (CYBG)
Quarterly Report (SEC form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
THE QUARTER ENDED MARCH 31, 1998 COMPARED TO THE QUARTER ENDED MARCH 31, 1997
NET REVENUE
Net revenue (refers to gross product sales less any returns and allowances) consist primarily of network security product salesincluding third party security productsand services, which include consulting, installation, and maintenance support contracts related to security products. For the quarter ended March 31, 1998, net revenue increased by approximately $1.05 million (or 25.6%) compared to the quarter ended March 31, 1997
During the quarter ended March 31, 1998, revenue from the various
firewall products and TradeVPI products increased from $3.8 million to
$4.3 million, representing an increase of 13% over sales in the same quarter of the previous year. The increase is the result of a greater number of shipments of the Company's firewall product; specifically, the Company shipped 355 CyberGuard Firewall systems during the quarter ended March 31, 1998 compared to 171 for the quarter ended March 31, 1997.
Support services related to firewall products and TradeWave certificate authority services increased from $0.2 million for the three months ended March 31, 1997 to $0.8 million for the three months ended March 31, 1998 or a 255% increase. Subsequently, as the installed base increases, the Company's support revenue will increase.
For the quarter ended March 31, 1998, international sales of the Company's network security products decreased slightly to $2.5 million from $2.6 million for the quarter ended March 31, 1997. The nominal decline in revenue from international sales of network security products is the result of economic pressures placed on the Asian market.
International sales represented 47.9% and 64.3% of total security product revenue- for the periods ending March 31, 1998 and 1997
respectively.
Domestic revenues for the Company increased by $1.2 million to $2.7
million for the quarter ended March 31, 1998 compared to the quarter
ended March 31, 1997. The increase in domestic revenues is due in part
to the release of the NT firewall; the addition of the Tradewave VPI
product suite; increased service revenue from consulting and
installation; and increased maintenance support contracts for the larger installed base. The sales of the Company's direct sales force increased 50%, the sales through the distribution channel increased by 130%, and service revenue increased by 255%.
GROSS PROFIT
Gross Profit as a percent of sales increased to 65.5% from 54.4% for the quarter ended March 31, 1998 compared to the corresponding period in the previous year. The result of increased "software- only" sales, accounted for approximately 72% of sales during the quarter ended March 31, 1998 as compared to the same quarter of the previous year, there were approximately 47% "software-only" sales. In addition, the Company experienced cost reductions associated with the shipping of the Intel-based platform as compared to the proprietary Nighthawk platform associated with the Company's combined hardware/software product. Since the introduction of the Company's "software-only " product, the Company's sales in Asia which represent 48% of the Company's revenue, have been almost exclusively "software-only. This result has had a significant effect on the Company's gross profit margin. In addition, the North American commercial market share has been increasing with the intensive program on the way to develop new
channels. The sales to these markets have approximately doubled. This
"software only sale", too, has greatly attributed to the increase in the overall gross profit margin.
NET REVENUE
For the nine-month period ended March 31, 1998, net revenue (refers to
gross product sales less any returns and allowances) increased by
approximately $4.9 million to $15.1 million when compared to the
nine-month period ended March 31, 1997. The $4.9 million increase is
represented by $4.0 million in revenue from the sale of network security products and $0.9 million in service-related revenues. The $4.0 million (or 41%) increase in network security product revenues is the result of increased shipments of the Company's CyberGuard firewall and Trade VPI products. Specifically, the Company shipped 861 CyberGuard systems during the nine-month period ended March 31, 1998 compared to 391 for the nine-month period ended March 31, 1997 an increase of 120%. Revenue from support services, related to firewall products and TradeWave certificate authority, increased from $0.6 million for the nine months ended March 31, 1997 to $1.2 million for the nine months ended March 31, 1998. This increase is due to the greater number of installed units, the installed base of customers with Tradewave's OASIS project and increased consulting and customer training. Support services for network security products accounted for 10% of revenues during the quarter ended March 31, 1998 as compared to 6% for the quarter ended March 31, 1997.
And of course you can read the rest of the report for yourself.
Regards,
Addi Jamshidi |
