SDTI gapping to 18 pre-market on excellent earnings: Thursday April 15, 4:02 pm Eastern Time
Company Press Release
SOURCE: Security Dynamics Technologies, Inc.
Security Dynamics Technologies, Inc. Reports Record First Quarter Revenue
BEDFORD, Mass., April 15 /PRNewswire/ -- Security Dynamics Technologies, Inc. (Nasdaq: SDTI - news) today reported
financial results for the first quarter ended March 31, 1999. Revenue for the first quarter of 1999 increased 21% to $48.7 million,
from $40.2 million for the first quarter of 1998. Excluding certain non-operating and one-time items, earnings for the quarter were $5.1 million ($0.12 per share on a
diluted basis) compared to $5.7 million ($0.14 per share on a diluted basis) for the same period in 1998.
Reported net income for the first quarter of 1999 was $41.0 million ($0.97 per share on a diluted basis), compared to $3.0 million ($0.07 per share on a diluted
basis) for the first quarter of 1998. Reported net income for the first quarter of 1999 includes a gain of $74.5 million from the sale of 1.0 million shares of the
Company's common stock holdings in VeriSign, Inc. and a loss of $0.4 million from the Company's equity in VeriSign's net loss. Also during the first quarter of
1999, the Company completed consolidation of certain operations in order to promote operational efficiency. The Company provided $6.6 million, primarily
severance and facilities exit costs, in connection with this effort.
''We are very pleased with our record revenue performance and strong earnings for the first quarter of 1999,'' said Charles Stuckey, chairman and CEO of Security
Dynamics. ''Our core SecurID and RSA product lines continued to show growth in Q1, and we've moved closer to delivering our Keon 5.0 products in the coming
months.''
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® 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.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended
March 31,
1999 1998
(Unaudited)
Revenue $48,672 $40,246
Gross profit 37,235 31,630
Operating expenses:
Research and development (C) 8,229 7,323
Marketing and selling 17,943 13,480
General and administrative 5,933 4,719
Merger and integration (D) -- 2,600
Exit costs (A) 6,550 --
Total operating expenses 38,655 28,122
Operating (loss) income (1,420) 3,508
Interest income and other 2,043 2,410
Gain on sale of VeriSign common stock (B) 74,489 --
Equity in loss from operations of
equity investment (B) (358) --
Income before provision for income taxes 74,754 5,918
Provision for income taxes 33,832 3,202
Minority interests 67 248
Net income 40,989 2,964
Net income per share - basic $1.03 $0.07
Net income per share - diluted $0.97 $0.07
Weighted average number of common shares
- basic 39,737 40,665
Weighted average number of common shares
- diluted 42,051 42,151
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
1999 1998
(Unaudited)
Cash and marketable securities $208,744 $158,236
Accounts receivable, net 35,610 36,712
Total assets 332,143 280,855
Stockholders' equity 252,250 242,720
(A) Consists of costs, primarily severance and facilities exit costs, in
the first quarter of 1999 in connection with consolidation of certain
operations in order to promote operational efficiency.
(B) Non-operating and one-time items.
(C) Includes purchased research and development of $210 for the three
months ended March 31, 1998.
(D) Merger and integration costs associated with the March 1998
acquisition of Intrusion Detection, Inc.
SOURCE: Security Dynamics Technologies, Inc.
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