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News release via Canada NewsWire, Toronto 416-863-9350
[CERTICOM LOGO]
ATTENTION BUSINESS/FINANCIAL EDITORS:
CERTICOM REPORTS FISCAL FOURTH QUARTER & YEAR END 2000 RESULTS
Quarterly Revenue Increased 156% Over Previous Year
HAYWARD, CA, June 14 /CNW/ - Certicom Corp. (Nasdaq: CERT and TSE: CIC), a
leading provider of mobile e-commerce security, today announced results for its
fiscal fourth quarter and year-ended April 30, 2000.
Certicom reported revenue of approximately $4.0 million for the three
months ended April 30, 2000, a 156% increase over revenue of approximately $1.5
million in the same period in fiscal year 1999. In addition, revenues increased
20% over revenue of $3.3 million reported in the quarter ended January 31, 2000.
Certicom posted record revenue of $12.0 million for the year ended April
30, 2000, compared to $4.0 million in fiscal 1999. The rise in revenues was
primarily driven by additional licenses for the company's products. For the
year, software license revenue rose 247%.
"We continue to see growth in all of Certicom's key market segments,
particularly wireless and mobile e-commerce," said Rick Dalmazzi, president and
chief executive officer of Certicom. "One of our key licensee announcements
during the quarter was Motorola, who will use our Elliptic Curve Cryptography
(ECC) technology throughout its wireless product offerings."
Dalmazzi continued, "We also announced our entry into the healthcare
industry with key licensee agreements including E-Physician and PlanetRx.com. We
see the healthcare market as a key strategic focus for Certicom in the future
and we expect to make additional announcements with companies in the healthcare
industry over the coming months."
Total operating expenses for the fourth quarter of the 2000 fiscal year
were $10.3 million compared to $5.6 million in the same period of the 1999
fiscal year. This figures included charges of $2.5 million and $1.7 million,
respectively, related to depreciation and amortization. For the fiscal year,
operating expenses totaled $29.2 million, compared to $20.5 million for the 1999
fiscal year. This figures included charges of $8.4 million and $6.2 million,
respectively, related to depreciation and amortization. The overall increase in
expenses was attributable to the introduction of new products, the addition of
personnel and the relocation of the Company's headquarters to Silicon Valley.
"Certicom began ramping up personnel and marketing initiatives in advance
of the financing completed in early May, which impacted our expenses during the
fourth quarter. Specifically, the number of new personnel increased 20% during
the fourth quarter. Certicom is committed to becoming the dominant
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player in wireless security and our activities reflect that goal," said Rich
Brounstein, chief financial officer of Certicom.
Certicom reported a net loss of $4.3 million, or $(0.38) per share
excluding $2.5 million of non-cash charges related to goodwill and amortization
for the fourth quarter ended April 30, 2000. On an actual basis, Certicom
reported a net loss of $6.8 million, or $(0.60) per share for the fourth quarter
of fiscal 2000, compared to a net loss of $4.1 million, or $(0.37) per share in
the same period a year ago.
For fiscal 2000 the company posted a net loss of $9.5 million or $(0.85)
per share for its fiscal year ended April 30, 2000 excluding goodwill, purchased
in-process R&D and amortization charges of $8.4 million compared to $9.2 million
or $(0.87) per share for fiscal 1999 excluding $6.2 million in charges related
to goodwill, purchased in-process R&D and amortization. On an actual basis for
fiscal 2000 the Company posted a net loss of $17.9 million, or $(1.61) per
share, compared to a net loss of $16.5 million, or $(1.46) per share in fiscal
year 1999.
New Licensees
During the fourth quarter, Certicom's sales and business development team
successfully closed a number of new licensing agreements in the wireless market
segment. Applications included mobile data synchronization, financial software
for stock trading, and wireless banking, healthcare and wireless network
infrastructure (including WAP proxy servers and browsers, and wireless
middleware). The Company also continued to solidify its international presence
through licensing agreements with companies including Dynamical Systems Research
(United Kingdom), Exalink (Israel), Systor AG (Switzerland) and Integra Micro
Systems (India).
Certicom recently announced licensing agreements with wireless technology
leaders including Motorola, Dynamical Systems Research, Exalink, Integra Micro
Systems, Neopoint, Neomar, GoAmerica, PayPal, Paradigm 4, and Synchrologic.
Additionally, the Company announced that Amazon.com, Auto-trol Technology, BEA
Systems, Communities.com, Critical Devices.com, E-Physician, MoneyStream,
PlanetRX.com, RSA Security, Sybase, Systor AG and XM Satellite Radio have joined
its growing list of innovative technology provider and enterprise e- business
customers.
New Products
Certicom recently announced the VPN handheld client, a virtual private
network (VPN) solution specifically built for today's mobile and wireless
devices. Certicom's new offering will be the first handheld-device VPN client to
interoperate with a wide range of popular VPN systems, allowing organizations to
easily and securely incorporate popular mobile and wireless devices into
sensitive corporate VPNs. Initial partners include Alcatel, AXENT Technologies
Inc., Check Point, Cisco, Enterasys Networks (formerly Cabletron), Intel Corp.,
Nortel Networks and Spring Tide Networks. Certicom's VPN client provides major
productivity improvements and strategic flexibility to today's enterprise while
expanding Certicom's wide range of mobile security products designed
specifically to meet the bandwidth and footprint constraints of today's
increasingly mobile professional work forces.
Other recent key product news included Certicom's announcement of a joint
venture with CyberSafe Corporation to deliver smart card-enabled security
products and services for e-business payments and identity protection. The two
companies announced that they will develop and market turnkey solutions that
secure the payment systems for e-business applications by combining smart card-
based user identity systems with digital signatures, using the existing payment
system infrastructures. These solutions will benefit e-commerce merchants and
customers by virtually eliminating the opportunity for on-line fraud and
ensuring consumer privacy when using the Internet.
Other announced news in the quarter included the U.S Government's adoption
of ECC in the FIPS 186-2 Standard which represents the final endorsement of ECC
for protecting the authenticity and integrity of US Government e-business
activities. In addition, Certicom announced that Entrust Technologies Inc., CV
Cryptovision and Scopus Tecnologia joined the Standards for Efficient
Cryptography Group (SECG).
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About Certicom
Certicom is an encryption technology company specializing in security
solutions for mobile computing and wireless data markets, including m- commerce.
Major computing and communications companies such as Palm Inc., BellSouth
Wireless Data, Motorola, Pitney Bowes, and QUALCOMM incorporate Certicom's
technology into electronic commerce software, wireless messaging applications,
and smart cards. Certicom is a leading 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 Hayward, California, with
cryptographic research and product development in Toronto, Canada. For more
information, visit Certicom's Web site at http://www.certicom.com.
Except for historical information contained herein, this press release
contains forward-looking statements that involve risks and uncertainties. Actual
results may differ materially. Factors that might cause a difference include,
but are not limited to, those relating to the acceptance of mobile and wireless
devices and the continued growth of e-commerce and m-commerce (mobile
e-commerce), the increase of the demand for mutual authentication in m-commerce
transactions, the acceptance of Elliptic Curve Cryptography (ECC) technology as
an industry standard, the market acceptance of our principle products and sales
of our customer's products, the impact of competitive products and technologies,
the possibility of our products infringing patents and other intellectual
property of third parties, and costs of product development. Certicom will not
update these forward-looking statements to reflect events or circumstances after
the date hereof. More detailed information about potential factors that could
affect Certicom's financial results is included in the documents Certicom files
from time to time with the Securities and Exchange Commission and Canadian
securities regulatory authorities including Certicom's Registration Statement on
Form F-10.
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CERTICOM CORP.
Consolidated Statements of Operations
(In thousands of U.S. dollars, except per share data) U.S. GAAP
----------------------------------------------------- ------------------------------
Three months ended April 30,
2000 1999
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(Unaudited)
<S> <C> <C>
REVENUES ....................................... $ 3,971 $ 1,549
COSTS AND EXPENSES
Selling and marketing ........................ 2,202 1,454
Research and development ..................... 1,830 678
Depreciation and amortization ................ 2,497 1,722
General and administrative ................... 2,631 1,335
Purchased in-process research and development -- --
Systems integration .......................... 874 303
Cost of hardware sold ........................ 218 94
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10,252 5,586
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OPERATING LOSS ................................. (6,281) (4,037)
OTHER EXPENSE .................................. (347) (18)
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<S> <C> <C>
LOSS BEFORE INCOME TAXES ....................... (6,628) (4,055)
INCOME TAXES ................................... 200 19
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NET LOSS ....................................... $ (6,828) $ (4,074)
BASIC AND DILUTED NET LOSS PER COMMON SHARE .... $ (0.60) $ (0.37)
============= ==============
NET LOSS EXCLUDING NON-CASH CHARGES ............ (4,331) (2,352)
NET LOSS PER SHARE EXCLUDING NON-CASH
CHARGES ....................................... $ (0.38) $ (0.22)
============= ==============
WEIGHTED AVERAGE NUMBER OF OUTSTANDING
COMMON SHARES ................................ 11,475,594 10,908,901
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<TABLE>
<CAPTION>
CERTICOM CORP.
Consolidated Statements of Operations
(In thousands of U.S. dollars, except per share data) U.S. GAAP
----------------------------------------------------- ------------------------------
Year ended April 30,
2000 1999
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<S> <C> <C>
REVENUES ....................................... $ 12,040 $ 4,042
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COSTS AND EXPENSES
Selling and marketing ........................ 6,616 6,087
Research and development ..................... 4,446 3,240
Depreciation and amortization ................ 7,861 5,063
General and administrative ................... 7,099 4,277
Purchased in-process research and development 535 1,151
Systems integration .......................... 2,080 587
Cost of hardware sold ........................ 579 125
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29,216 20,530
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OPERATING LOSS ................................. (17,176) (16,488)
OTHER INCOME/EXPENSE ........................... (359) 1,015
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LOSS BEFORE INCOME TAXES ....................... (17,535) (15,473)
INCOME TAXES ................................... 334 (92)
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NET LOSS ....................................... $ (17,869) $ (15,381)
BASIC AND DILUTED NET LOSS PER COMMON SHARE .... $ (1.61) $ (1.46)
============= ===============
NET LOSS EXCLUDING NON-CASH CHARGES ............ (9,473) (9,167)
NET LOSS PER SHARE EXCLUDING NON-CASH
CHARGES ....................................... $ (0.85) $ (0.87)
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<TABLE>
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF OUTSTANDING
COMMON SHARES ................................. 11,127,522 10,516,424
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<TABLE>
<CAPTION>
CERTICOM CORP.
Consolidated Balance Sheets
(In thousands of U.S. dollars) U.S. GAAP
------------------------------ -----------------------------
April 30,
2000 1999
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<S> <C> <C>
ASSETS
CURRENT
Cash ............................................. $ 10,508 $ 1,400
Marketable securities, available for sale ........ 2,550 12,678
Accounts receivable (net of allowance
for doubtful debts of $161 and $13) ............. 5,977 2,076
Inventories ...................................... 218 396
Prepaid expenses and deposits .................... 1,740 641
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20,993 17,191
CAPITAL ASSETS ..................................... 5,213 2,837
PATENTS ............................................ 873 518
ACQUIRED INTANGIBLES ............................... 24,437 21,069
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TOTAL ASSETS ....................................... $ 51,516 $ 41,615
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LIABILITIES
CURRENT
Accounts payable ................................. $ 974 $ 521
Accrued liabilities .............................. 2,107 986
Income taxes payable ............................. 430 220
Deferred revenue ................................. 909 402
Note payable ..................................... 10,000 --
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14,420 2,129
LEASE INDUCEMENTS .................................. 1,105 315
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15,525 2,444
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SHAREHOLDERS' EQUITY
Common shares
Authorized: unlimited
Issued and outstanding:
(11,543,933 and 10,911,877) ..................... 80,859 67,840
Additional paid-in capital ....................... 11,922 10,266
Accumulated other comprehensive loss ............. (2,497) (2,511)
Deficit .......................................... (54,293) (36,424)
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<TABLE>
<S> <C> <C>
TOTAL SHAREHOLDERS' EQUITY ......................... 35,991 39,171
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......... $ 51,516 $ 41,615
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%SEDAR: 00003865E
-30-
For further information: Company Contacts: Rich Brounstein, CFO, Certicom Corp.,
(510) 780-5325, rbrounstein(at)certicom.com; Starla Ackley, IR Manager, Certicom
Corp., (510) 780-5404, sackley(at)certicom.com; Agency Contacts: Lillian
Armstrong (Analysts), Lippert/Heilshorn & Associates, Inc., (415) 433-3777;
Pamela Rigler (Media), Lippert/Heilshorn & Associates, Inc., (212) 838-3777
