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EXHIBIT 2
Press release regarding
Trend Micro's consolidated first-half results for the
fiscal year ended December 31, 2000
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Trend Micro Posts Record First-Half Earnings
Net income surges 161% from first half 1999 as sales grow by 71%
Tokyo, Japan, August 10, 2000-Trend Micro Incorporated (Nasdaq:TMIC, Japan
OTC:4704), a leading provider of enterprise antivirus and content security
software, today announced sales of 9,600 million yen during the first half of
2000, a 70.5% increase over the 5,631 million yen reported for the corresponding
period of 1999. Net income climbed to 2,474 million yen, an increase of 160.7%
from sales of 949 million yen in the first half of 1999.
The strong gains were driven by an ongoing surge in the sales of high-end
Internet-related products, and also reflected income from Nippon Unisoft which
was acquired by Trend Micro in February, 2000. Excluding income from Nippon
Unisoft, sales climbed 59% to 8,974 million in the first half of 2000. Net
income soared 160.7% to 2,474 million yen. The increase also includes
extraordinary income associated with a license fee received in connection with
the settlement of a patent dispute.
<TABLE>
<CAPTION>
-----------------------------------------------------------
(in millions, Half Year
except share data)
-----------------------------------------------------------
1H FY 00 1H FY 99 Change
<S> <C> <C> <C>
-----------------------------------------------------------
Net sales (Yen)9,600 (Yen)5,631 70.5%
-----------------------------------------------------------
Operating Income (Yen)3,016 (Yen)1,813 66.3%
-----------------------------------------------------------
Ordinary Income (Yen)2,972 (Yen)1,916 55.1%
-----------------------------------------------------------
Net income (Yen)2,474 (Yen) 949 160.7%
-----------------------------------------------------------
Earnings per share (Yen)38.06 (Yen)45.19
-----------------------------------------------------------
</TABLE>
The company reported significant growth in all major markets, as sales of its
Internet gateway and email antivirus products remained robust. Europe led all
regions with a 182% increase in revenues to 1,870 million yen. Sales in the
United States jumped 90% from a year ago to reach 2,778 million yen. Japan
remained the largest market, with revenue rising to 3,655 million yen, a 43%
rise from 1999. Sales in Taiwan climbed 21% to 832 million yen in the first half
of 2000, while sales in other markets rose 82% to 463 million.
Enterprise revenue accounted for 90% of Trend Micro's revenue mix. Sales of
Trend Micro's flagship InterScan(R) VirusWall(R) product were up 120%, signaling
that it is fast becoming one of the industry's leading gateway virus protection
products.
"We experienced another record first half," said Steve Chang, chairman and CEO
of Trend Micro. "Our enterprise customer base continues to grow very strongly,
which clearly shows the competitive advantage offered by our best-of-breed
technology. I am especially pleased with our team's ability to keep delivering
superior products to the market. We are successfully executing our Internet
strategy -- providing software and services that work as part of the Internet's
infrastructure."
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Highlights From the First Half of 2000
. Continuing to successfully execute its Internet infrastructure strategy, Trend
Micro signed agreements with leading telcos, Internet Service Providers (ISP),
and Application Service Providers (ASP), including Telstra, Syntegra, US WEST,
USinternetworking (USi), Internet Security Systems (ISS), World Online, and
InterNoded.
. Trend Micro announced its carrier-class, Internet gateway virus scanning
software solution, InterScan VirusWall for ISPs designed specifically for the
rigors of the ISP, ASP, and telco environments.
. InterScan(R) VirusWall(R) Internet gateway virus protection software became
the first antivirus product to achieve Sun Microsystems' SunTone(SM)
Application Certification for deployment in ASP environments.
. In February, Trend Micro acquired Nippon Unisoft, a Japanese Linux/Unix
software solution provider. A new subsidiary, ipTrend, has drawn on Unisoft's
Internet infrastructure software capabilities to develop a line of Linux-based
Internet appliances targeted toward small and medium-sized enterprises who
want to deploy ecommerce systems.
. Trend Micro improved its best-of-breed enterprise product line, with new
versions of InterScan(R) VirusWall(R), ScanMail(R) for Exchange and Lotus
Notes, InterScan eManager(TM), and InterScan AppletTrap(TM) products.
. Trend Micro secured many new enterprise customers, including Time Warner,
Paine Webber, the US Department of Justice, the US State Department, Volvo,
General Mills, Panasonic USA, Verizon Wireless, the Social Security
Administration, Cisco Systems, Tyco Electronics, Bell South and Brystol Myers
Squibb.
. Trend Micro expanded its global presence by forming new strategic alliances
with partners such as Compaq, Sendmail, NetIQ, Network Appliance, Kforce
Consulting, Ultimatico Safeware AG and Computer Sciences Corporation.
. Trend Micro announced three strategic appointments in the organization during
the first half of 2000: Allan Thompson was named the new vice president of
North American marketing, Mike Conner was appointed the president of North
American operations and Mahendra Negi was appointed the COO/CFO of Trend
Micro's subsidiary, ipTrend.
. In June, Trend Micro settled its patent dispute with Network Associates, Inc.
in the United States. The two antivirus firms cross-licensed their patent
portfolios and ended all pending legal action.
. PC-cillin(R) 2000, Trend Micro's desktop antivirus software for home
users, shipped in April and was the first antivirus
product to be certified for Microsoft Windows 2000 by VeriTest, an
independent software certification service.
. Trend Micro was granted one patent by the US Patent and Trademark Office for
ActiveX and Java Applet Scanning Technology
. Worldwide, Trend Micro's enterprise and desktop products were recognized by
numerous publications including PC Week, Windows Magazine, Secure Computing,
Government Computer News, and Network Computing and won numerous awards and
commendations. For a complete list, see
http://www.antivirus.com/corporate/press_coverage/awards.htm.
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Trend Micro's 1H 2000 financial results described in this release were prepared
in accordance with Japanese generally accepted accounting principles (GAAP).
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Act of 1934, as amended. The forward-looking statements involve risks
and uncertainties including, but not limited to, the effectiveness of Trend
Micro's products in protecting against computer viruses, rapid technological
change in the antivirus software market, the lack of market acceptance for new
products, the ability of Trend Micro to deliver its products in a timely manner
and to execute its Internet strategy, and other risks indicated in the Risk
Factors section of Trend Micro's annual report on Form 20-F dated May 24, 2000.
The annual report is on file with the SEC. Actual results could differ
materially. Trend Micro assumes no obligation to update this information.
About Trend Micro Incorporated
Trend Micro provides centrally controlled server-based virus protection and
content-filtering products and services. By protecting information that flows
through Internet gateways, email servers, and file servers, Trend Micro allows
companies worldwide to stop viruses and other malicious code from a central
point before they ever reach the desktop.
Trend Micro's corporate headquarters is located in Tokyo, Japan, with business
units in North and South America, Europe, Asia, and Australia. The North
American head office is located in Cupertino, CA. Trend Micro's products are
sold directly and through a network of corporate and value-added resellers.
Evaluation copies of all of Trend Micro's products may be downloaded from its
award-winning site, http://www.antivirus.com.
Contact: Hiroyuki Nakanishi
Director and Investor Relations Officer
Phone:81-3-5334-3600
Fax:81-3-5334-3653
Mail to: [email protected]
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