Tokyo, Japan – October 22, 2001 – Trend Micro Inc. (Nasdaq: TMIC, TSE: 4704), a worldwide leader in network antivirus and Internet content security solutions, today announced its unaudited U.S. GAAP financial information for the first half of 2001. Financial Highlights for the first half of FY 2001 January 1, 2001 through June 30, 2001
Sales | Growth rate | Operating income |
Growth rate | Net income before tax | Growth rate | |
Millions of yen | % | Millions of yen | % | Millions of yen | % | |
The first half of FY 01 | 12,939 | 38.7 | 1,007 | (62.4) | 1,224 | (67.3) |
The first half of FY 00 | 9,331 | 62.7 | 2,678 | 56.7 | 3,740 | 111.5 |
FY 00 (annual) | 20,070 | 5,527 | 6,892 |
Net Income | Growth rate | Net income per share |
Net income per share (diluted) |
|
Millions of yen | % | Yen | Yen | |
The first half of FY01 | 554 | (74.8) | 4.22 | 4.14 |
The first half of FY00 | 2,194 | 162.7 | 16.88 | 16.40 |
FY 00 (annual) | 3,675 | 28.18 | 27.53 |
Total assets | Shareholders' equity | Shareholders' equity ratio | Shareholders' equity per share |
|
As of: | Millions of yen | Millions of yen | Yen | |
June 30, 2001 | 52,993 | 26,891 | 50.7 | 204.21 |
June 30, 2000 | 38,519 | 20,999 | 54.5 | 161.10 |
December 31, 2000 | 44,574 | 24,344 | 54.6 | 185.66 |
Operating Cash Flow | Investing Cash Flow | Financing Cash Flow | Ending balance of Cash and Cash equivalents | |
As of: | Millions of yen | Millions of yen | Millions of yen | Millions of yen |
June 30, 2001 | 4,191 | (1,364) | 6,963 | 34,553 |
June 30, 2000 | 1,594 | (1,772) | 5,430 | 20,902 |
December 31, 2000 | 6,086 | (4,141) | 6,496 | 24,436 |
The number of consolidated subsidiaries …………… 18 The number of unconsolidated subsidiaries …………… - The number of affiliated companies …………… 4
The number of additional consolidated subsidiaries…..… 2 The number of excluded consolidated subsidiaries…..… - The number of additional consolidated affiliated companies… 1 The number of excluded consolidated affiliated companies… -
Previously, on August 3, 2001, Trend Micro announced its Japanese GAAP financial information for the same period. Significant differences between Japanese GAAP and U.S. GAAP applicable to Trend Micro are summarized below. Goodwill write-off (2,000 million yen), which is recognized as other expenses under Japanese GAAP, is recognized as operating expenses under U.S. GAAP. From the fiscal year ending December 31, 2001, Trend Micro and Trend Micro Incorporated (Taiwan) have adopted the deferred revenue accounting for their Post-contract Customer Support service for its Japanese GAAP financial reporting purposes. The cumulative effect of adopting the deferred revenue accounting of 3,009 million yen is recorded as other expenses under Japanese GAAP. For its U.S. GAAP reporting purposes, Trend Micro and Trend Micro Incorporated (Taiwan) have historically adopted the deferred revenue accounting for their Post-contract Customer Support service on a consistent basis.
(Except December 31, 2000, all balances unaudited)
Thousands of yen
|
Thousands of U.S. dollars | |||
June 30, 2000 | December 31, 2000 | June 30, 2001 | June 30, 2001 | |
Current assets: | ||||
Cash and cash equivalents | ¥20,901,860 | ¥24,435,503 | ¥34,553,234 | $276,426 |
Time deposits | - | - | 65,511 | 524 |
Marketable securities | 3,262,862 | 1,893,475 | 2,505,717 | 20,046 |
Notes and accounts receivable, trade - less allowance for doubtful accounts and sales return of \419,776, \646,566 and \608,682 ($4,869) | 6,812,271 | 8,133,700 | 7,058,799 | 56,471 |
Inventories | 101,778 | 318,188 | 206,946 | 1,656 |
Deferred income taxes | 940,866 | 2,687,913 | 2,798,031 | 22,384 |
Prepaid expenses and other current assets | 1,749,301 | 607,142 | 994,108 | 7,952 |
33,768,938 | 38,075,921 | 48,182,346 | 385,459 | |
Investments and other assets: | ||||
Securities investments | 980,801 | 1,335,849 | 1,256,501 | 10,052 |
Investment in and advances to affiliated Companies | 246,628 | 182,473 | 109,623 | 877 |
Goodwill and other intangible assets | 1,586,609 | 2,740,827 | 979,528 | 7,836 |
Deferred income taxes | 398,019 | 446,004 | 150,447 | 1,204 |
Other | 539,415 | 570,742 | 795,721 | 6,366 |
3,751,472 | 5,275,895 | 3,291,820 | 26,335 | |
Property and equipment: | ||||
Office furniture and equipment | 1,308,853 | 1,536,444 | 1,921,112 | 15,369 |
Other properties | 357,362 | 443,102 | 597,089 | 4,776 |
1,666,215 | 1,979,546 | 2,518,201 | 20,145 | |
Less: Accumulated depreciation | (667,128) | (756,898) | (999,550) | (7,996) |
999,087 | 1,222,648 | 1,518,651 | 12,149 | |
¥38,519,497 | ¥44,574,464 | ¥52,992,817 | $423,943 |
(Except December 31, 2000, all balances unaudited)
Thousands of yen | Thousands of U.S. dollars | |||
June 30, 2000 | December 31, 2000 | June 30, 2001 | June 30, 2001 | |
Current liabilities: | ||||
Current portion of long-term debt | - | ¥ 57,200 | ¥ 57,200 | $458 |
Notes payable, trade | ¥148,182 | 132,499 | 81,140 | 649 |
Accounts payable, trade | 472,072 | 796,782 | 627,547 | 5,020 |
Accounts payable, other | 591,154 | 517,247 | 637,700 | 5,102 |
Withholding income taxes | 145,999 | 120,994 | 172,648 | 1,381 |
Accrued expenses | 476,950 | 615,850 | 981,643 | 7,853 |
Accrued income and other taxes | 946,855 | 2,014,589 | 606,682 | 4,853 |
Deferred revenue | 2,898,887 | 5,043,425 | 6,311,197 | 50,490 |
Other | 349,417 | 415,372 | 273,278 | 2,187 |
6,029,516 | 9,713,958 | 9,749,035 | 77,993 | |
Long-term liabilities: | ||||
Long-term debt | 10,865,760 | 9,799,900 | 15,471,300 | 123,770 |
Deferred revenue | 330,544 | 548,225 | 655,291 | 5,242 |
Accrued pension and severance costs | 143,590 | 168,032 | 226,315 | 1,811 |
11,339,894 | 10,516,157 | 16,352,906 | 130,823 | |
Minority interest in consolidated subsidiary | 151,468 | - | - | - |
Shareholders' equity: | ||||
Common stock, ¥50 par value - | ||||
Authorized – 250,000,000 shares | ||||
Issued and outstanding | ||||
- June 30, 2000 130,345,338 shares | 5,620,192 | |||
- December 31, 2000 131,120,842 shares | 6,183,266 | |||
- June 30, 2001 131,681,887 shares | 6,799,374 | 54,395 | ||
Additional paid-in capital | 10,101,923 | 11,631,591 | 12,313,160 | 98,505 |
Legal reserve | 149,991 | 149,991 | 149,991 | 1,200 |
Deferred compensation related to stock options | (50,764) | - | - | - |
Retained earnings | 5,276,722 | 6,745,769 | 7,279,920 | 58,239 |
Accumulated other comprehensive income | ||||
Net unrealized gain on debt and equity securities | 503,255 | (168,277) | 118,721 | 950 |
Cumulative translation adjustments | (580,279) | (169,616) | 240,701 | 1,926 |
(77,024) | (337,893) | 359,422 | 2,876 | |
Treasury stock, at cost | (22,421) | (28,375) | (10,991) | (88) |
20,998,619 | 24,344,349 | 26,890,876 | 215,127 | |
Commitments and contingent liabilities | - | - | - | - |
¥38,519,497 | ¥44,574,464 | ¥52,992,817 | $423,943 |
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
( Unaudited )
Thousands of yen | Thousands of U.S. dollars | |||
For the six months ended June 30, |
For the six months ended June 30, |
|||
2000 | 2001 | 2001 | ||
Net sales | ¥9,330,979 | ¥12,939,355 | $103,515 | |
Cost of sales | 603,879 | 732,229 | 5,858 | |
Gross profit | 8,727,100 | 12,207,126 | 97,657 | |
Operating expenses: | ||||
Selling | 1,068,155 | 3,224,430 | 25,795 | |
Research and development | 850,858 | 1,481,962 | 11,856 | |
General and administrative | 4,034,058 | 4,240,357 | 33,923 | |
Goodwill amortization | 95,797 | - | - | |
Goodwill write-off | - | 2,253,559 | 18,028 | |
6,048,868 | 11,200,308 | 89,602 | ||
Operating income | 2,678,232 | 1,006,818 | 8,055 | |
Other income (expenses): | ||||
Interest income | 76,561 | 202,267 | 1,618 | |
Interest expense | (85,521) | (135,172) | (1,081) | |
Gain on sales of marketable securities | 65,377 | - | - | |
Foreign exchange gain, net | 31,191 | 256,830 | 2,055 | |
Other income (expense), net | 974,227 | (107,200) | (859) | |
1,061,835 | 216,725 | 1,733 | ||
Income before income taxes, minority interest and equity in loss of affiliated companies | 3,740,067 | 1,223,543 | 9,788 | |
Income taxes (benefit): | ||||
Current | 1,790,174 | 491,658 | 3,933 | |
Deferred | (340,689) | 73,174 | 585 | |
1,449,485 | 564,832 | 4,518 | ||
Income before minority interest and equity in loss of affiliated companies | 2,290,582 | 658,711 | 5,270 | |
Minority interest in income of a consolidated subsidiary | 72,645 | - | - | |
Income from consolidated companies | 2,217,937 | 658,711 | 5,270 | |
Equity in losses of affiliated companies | 23,517 | 104,850 | 839 | |
Net income | ¥2,194,420 | ¥553,861 | $4,431 | |
\ | \ | U.S. dollars | ||
Per share data: | ||||
Net income - basic | ¥16.88 | ¥4.22 | $0.03 | |
- diluted | 16.40 | 4.14 | 0.03 | |
Cash dividends | - | - | - |
TREND MICRO INCORPORATED
AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thousands of yen | Thousands of U.S. dollars | |||
For the six months ended June 30, |
For the six months ended June 30, |
|||
2000 | 2001 | 2001 | ||
Cash flows from operating activities: | ||||
Net income | ¥2,194,420 | ¥553,861 | $4,431 | |
Adjustments to reconcile net income to net cash provided by operating activities - | ||||
Amortization of deferred compensation related to stock options | 46,114 | - | - | |
Depreciation and amortization | 466,243 | 2,728,584 | 21,829 | |
Pension and severance costs, less payments | 30,833 | 56,660 | 453 | |
Loss on disposal of fixed assets | 2,739 | - | - | |
Deferred income taxes | (340,688) | 73,174 | 585 | |
Gain on sales of marketable securities | (65,377) | - | - | |
Minority interest in income of a consolidated subsidiary | 72,645 | - | - | |
Changes in assets and liabilities: | ||||
Increase in deferred revenue | 800,107 | 1,197,419 | 9,579 | |
(Increase) decrease in notes and accounts receivable, trade, net of allowances | (915,342) | 1,323,967 | 10,592 | |
Decrease (increase) in inventories | (26,987) | 113,719 | 910 | |
(Decrease) in notes and accounts payable, trade | (187,070) | (261,766) | (2,094) | |
(Decrease) increase in accrued corporate taxes and other | 76,529 | (1,413,131) | (11,305) | |
Increase in other current assets | (726,786) | (103,212) | (826) | |
Increase (decrease) in other current liabilities | (6,101) | 40,311 | 322 | |
Other | 172,974 | (118,669) | (949) | |
Net cash provided by operating activities | 1,594,253 | 4,190,917 | 33,527 | |
Cash flows from investing activities: | ||||
Payments for purchases of fixed assets | (412,227) | (1,228,759) | (9,830) | |
Proceeds from sales of marketable securities | 150,814 | 2,611,426 | 20,891 | |
Payments for purchases of marketable securities | (2,736) | (2,648,926) | (21,191) | |
Acquisitions of businesses, net of cash acquired | (1,308,248) | - | - | |
Increase in investments in affiliated companies | (200,000) | (32,000) | (256) | |
Payments for time deposits | - | (65,511) | (524) | |
Net cash used in investing activities | (1,772,397) | (1,363,770) | (10,910) | |
Cash flows from financing activities: | ||||
Issuance of common stock pursuant to exercise of stock options | 359,273 | 870,797 | 6,966 | |
Tax benefit from exercise of non-qualified stock options | 621,555 | 411,301 | 3,290 | |
Proceeds from long-term debt | 5,000,000 | 6,500,000 | 52,000 | |
Repayment of long-term debt | (325,056) | (828,600) | (6,629) | |
Decrease in short-term borrowings | (198,000) | - | - | |
Other | (27,555) | 9,525 | 77 | |
Net cash provided by financing activities | 5,430,217 | 6,963,023 | 55,704 | |
Effect of exchange rate changes on cash and cash equivalents | 906 | 327,561 | 2,621 | |
Net increase in cash and cash equivalents | 5,252,979 | 10,117,731 | 80,942 | |
Cash and cash equivalents at beginning of period | 15,648,881 | 24,435,503 | 195,484 | |
Cash and cash equivalents at end of period | ¥20,901,860 | ¥34,553,234 | $276,426 |
Mr. Mahendra Negi
Chief Operating Officer / Chief Financial Officer / IR Officer
Phone: +813-5334-4899
Fax: +813-5334-4874
ir@trendmicro.co.jp
About Trend Micro
Trend Micro Incorporated (TSE: 4704), a global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years' experience, we deliver top-ranked client, server and cloud-based security that fits our customers' and partners' needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the Trend Micro™ Smart Protection Network™ cloud security infrastructure, our industry-leading cloud-computing security technology, products and services stop threats where they emerge, on the Internet, and are supported by 1,000+ threat intelligence experts around the globe.
Additional information about Trend Micro Incorporated and the products and services are available at Trend Micro.com This Trend Micro news release and other announcements are available at http://trendmicro.mediaroom.com/ and as part of an RSS feed at www.trendmicro.com/rss Or follow our news on Twitter at @TrendMicro.