Trend Micro Announces Record First Quarter Consolidated Results  

Sales grow 47% YoY and ordinary income rises 36% in 1Q 2002

Tokyo, Japan - April 19, 2002 - Trend Micro Inc. (TSE: 4704; Nasdaq: TMIC), a worldwide leader in network antivirus and Internet content security solutions, reported consolidated net sales of 9,752 million yen, or US $ 75,02 million, and ordinary income of 3,068 million yen, or US $23,60 million, for the first quarter of fiscal 2002, ended March 31, 2002. The figures reflect gains of 47.2% in sales and 36.3% in ordinary income compared with the same period a year ago. (Exchange rate 1US$ = 130 JPY)

1. Consolidated Unaudited Results of Operations for First Quarter Ending March 31, 2002 (Japanese GAAP)

*Figures for the first quarter of 2002 and 2001 are not audited, and figures in US$ are just pro forma, exchanged by rate: 1US$=130JPY.

1. Consolidated Results of Operations
  2002 2001  
Current first quarter Previous first quarter Growth Rate
From January 1, 2002 From January 1, 2001
To March 31, 2002 To March 31,2001
Millions of yen Millions of US$ Millions of yen Millions of US$ %
Sales 9,752 75.02 6,626 50.97 47.2
Cost of sales 596 4.59 395 3.04 50.8
Gross profit 9,156 70.43 6,230 47.93 46.9
Selling, general and administrative expenses 6,125 47.12 4,226 32.51 44.9
Operating income 3,030 23.31 2,004 15.42 51.2
Non-operating income 119 0.92 458 3.53 -73.9
Non-operating expense 79 0.61 210 1.62 -62.2
Ordinary income 3,070 23.62 2,252 17.33 36.3
Unusual gains - -  
Unusual losses 2 0.02
Income before taxes <Note:> 3,068 23.60
Corporate, inhabitant and enterprise tax 1,365  
Net income <Note> 1,702 13.10

Note: Trend Micro has begun reporting its income before taxes and net income in this first quarter of 2002. Figures for Trend Micro's income before taxes and net income for the first quarter of 2001 are not available.

2. Geographic segment information

Sales to third parties

  2002 2001
Current first quarter Previous first quarter
From January 1, 2002 From January 1, 2001
To March 31,2002 To March 31,2001
  Millions of yen Millions of US$ Millions of yen Millions of US$
Japan 3,967 30.52 2,619 20.15
North America 2,412 18.56 2,003 15.41
Europe 2,194 16.88 1,340 10.31
Asia and Oceania 892 6.87 480 3.69
Others 284 2.19 182 1.40
Total 9,752 75.02 6,626 50.97
<Note:> 1. Classification of countries and regions is based on geographical proximity.
  2. Classification of countries and regions into each geographic segment.
North America : U.S.A.
Europe : Italy, Germany, France, UK
Asia and Oceania : Taiwan, Korea, Australia, Hong Kong, Malaysia, New Zealand, China
Others : Brazil, Mexico
3. Basis of consolidation
The number of consolidated subsidiaries 16 (16 in overseas)
The number of unconsolidated subsidiaries -  
4. Increase (Decrease) of major assets and liabilities
  As of March 31, 2002 Increase
(Decrease)		 As of December 31, 2001
(Assets) Millions of yen Millions of US$ Millions of yen Millions of US$ Millions of yen Millions of US$
Cash and bank deposits 43,067 331.29 2,214 17.04 40,853 314.26
Notes and accounts receivable, trade 10,180 78.31 -2,100 16.16 12,280 94.47
Investments in securities 2,917 22.45 388 3.00 2,529 19.45
(Liabilities)            
Deferred revenue

 

(Total of short and long term)

 11,222 86.33 963 7.41 10,259 78.92
Bonds(Total of short and long term) 14,500 111.54 0 0 14,500 111.5

Note: In order for the warrants to be granted or transferred to the directors and certain employees of the Company and the directors and certain employees of an affiliated company, the Company issued unsecured bonds with detachable warrants. Under section 341-8-4 of the Japanese Commercial Code, the redemption and retirement of these bonds are restricted when the total amount of the bonds is less than the total amount of the issue price of the stocks from unexecuted warrants. To reduce interest costs, the Company repurchased some of the issued bonds after warrants were detached. Based on the above reason, the Company intends to hold the treasury bonds until they can be retired legally which is substantially the same as redemption. Thus, bonds and treasury bonds (6,800 millions of yen as of March 31, 2002 and as of December 31,2001 respectively) are disclosed in net amount in the balance sheet.

2. Projected consolidated earnings

1. Projected earnings for the current fiscal year (January 1, 2002 through December 31, 2002)
  Sales Ordinary income Net income
  Millions of yen
(Millions of US$*)		 Millions of yen
(Millions of US$*)		 Millions of yen
(Millions of US$*)
FY 2002 40,000
(307.69)		 13,000
(100.00)		 7,300
(53.15)
2. Projected earnings for the next quarter (April 1, 2002 through June 30, 2002)
  Sales Ordinary income Net income
  Millions of yen
(Millions of US$*)		 Millions of yen
(Millions of US$*)		 Millions of yen
(Millions of US$*)
2nd Qtr 9,800 - 10,300
(75.38 – 79.23)		 2,450 – 2,750
(18.85 – 21.15)		 1,350 – 1,550
(10.38 – 11.92)

*Exchange rate : 1US$=130JPY

Note: The business environment of the Trend Micro Group may change significantly and rapidly. Therefore, the Company has decided to disclose projected earnings range on a quarterly basis, but the actual earnings may deviate from the projection.


Notice Regarding Forward Looking Statements

These forward-looking statements include statements regarding our expectations about our earnings for the fiscal year ending December 31, 2002. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:

  • Customer acceptance of our new products and services
  • The impact of competing products and services
  • Difficulties in adapting our products and services to the Internet 
  • Difficulties in addressing new virus and other computer security problems
  • The potential lack of attractive investment targets and difficulties unsuccessfully executing our investment strategy
  • Declining prices for our products and srvices


We assume no obligation to update any forward-looking statements. For more details regarding risk factors relating to our future performance, please refer to our filings with the SEC including our annual report on Form 20-F which was filed on June 29,2001.

Information

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.

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