ActivCard, a leading provider of digital identity provisioning infrastructure, today reported financial results for its first quarter ended March 31, 2002.
Revenue for the first quarter ended March 31, 2002 increased 15% to $8.2 million compared to $7.1 million in the comparable period in 2001. Revenue in the first quarter of 2002 also increased 20% compared to the $6.8 million recorded in the fourth quarter of 2001.
Steven Humphreys, CEO of ActivCard, commented, "Our continuing focus for 2002 is on revenues, profitability, and increasing market share. Our first quarter results demonstrate solid progress in all of these areas. Achieving 20% sequential revenue growth in this challenging market environment is an indicator of the strength of our business position and the breadth of our revenue base. The 15% reduction in operating expenses relative to fourth quarter, after normalizing for the mid-quarter acquisition of Ankari, combined with this revenue increase, has moved us well along the path to profitability. Further, our performance relative to our competitors, many of whom are experiencing flat or negative growth, clearly reflects market share gains which are already underway."
Pro forma net loss for the quarter was $4.4 million, or $0.11 per diluted share, compared to pro forma net income of $115 thousand, or $0.00 per diluted share, in the first quarter of the previous year.
Actual net loss for the quarter was $28.6 million, or $0.71 per diluted share, compared to actual net loss of $371 thousand, or $0.01 per diluted share, in the first quarter of the prior year. The actual net loss for the quarter included a $7.4 million charge for the previously announced restructuring and business realignment of the Company. The Company also recorded a $15.5 million charge associated with a planned disposition of certain operations of the former Authentic8 International, Inc. The $15.5 million charge included a $15.0 million write-down of goodwill and other intangibles. Also excluded from pro forma net loss were acquisition related charges, deferred stock compensation, foreign exchange gains, legal settlement and operating results of discontinued operations.
Mr. Humphreys continued, "During the quarter we experienced accelerated growth in our smart card-based digital identity solutions in the U.S. and broadened our remote access / VPN authentication VAR channels in Europe. Demonstrating the broadening market adoption of our products, we sold over 400,000 licenses of our ActivCard GoldTM client software in the first quarter."
First Quarter 2002 Highlights
ActivCard's Trinity™ enterprise authentication software product received the Crossroads 2002 A-List Award for Strong Authentication Technology.
ActivCard and VeriSign announced a furthering of the partnership initiated in 2001 by linking ActivCard's Managed Digital Identity Infrastructure with VeriSign's new Digital Trust Services Framework and teaming to deliver solutions that enable secure Web and e-Business services.
ActivCard launched a strategic initiative to vigorously enforce its strong intellectual property position and filed a patent infringement lawsuit against Vasco Data Systems International.
ActivCard announced the integration of its smart card issuance, authentication and identity management system with Sun Microsystems' Sun Open Net Environment (Sun ONE) Platform for Network Identity, enabling a robust, highly scalable smart card and identity lifecycle management solution for enterprise customers.
Second Quarter and Fiscal 2002 Outlook
For the second quarter of 2002, the Company anticipates continued sequential growth with revenues ranging between $9.0 million and $9.5 million. Pro forma loss per share is expected to range between $0.08 and $0.11 per share. ActivCard's financial objectives for fiscal 2002 continue to be revenue growth of 30% to 35% from fiscal 2001 and continued focus on cost controls.
ActivCard's first quarter earnings conference call will be held today, Thursday, May 2nd, at 4:00 p.m. GMT/ 11:00 a.m. EST / 8:00 a.m. PST. The conference call will be simultaneously broadcast over the Internet and can be accessed on the Company's web site. To listen to the web cast, please log on to the Company's web site prior to the scheduled call time, to register, download and install any necessary audio software. If you are unable to attend the conference call at the scheduled time, a replay of the web cast will also be available at www.activcard.com
