Internet Security Systems maakt resultaten eerste kwartaal 2006 bekend
Capelle a/d IJssel, 27 april 2006 - Internet Security Systems (ISS) (Nasdaq: ISSX) heeft in het eerste kwartaal van 2006, dat eindigde op 31 maart 2006, een omzet gerealiseerd van USD 80.761.000. Dit is een stijging van vijf procent vergeleken met het eerste kwartaal van 2005, toen de omzet USD 76.792.000 bedroeg. De nettowinst volgens GAAP bedroeg in het eerste kwartaal van 2006 USD 7.050.000 of USD 0,15 per aandeel.
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PERSBERICHT
Internet Security Systems Reports First Quarter Results; Also Updating 2006 Business Outlook
Internet Security Systems, Inc. (ISS) (NASDAQ: ISSX), the worldwide leader in pre-emptive, enterprise security, today announced financial results for the first quarter ended March 31, 2006. Additionally, the Company is providing its business outlook for the second quarter ending June 30, 2006 and updating its business outlook for the full 2006 year.
First Quarter Revenues
Revenues were $80,761,000 for the first quarter of 2006, a 5% increase compared with first quarter 2005 revenues of $76,792,000.
GAAP Earnings
Reported net income under generally accepted accounting principles (GAAP) for the first quarter of 2006 was $7,050,000, or $0.15 per diluted share, compared to $7,845,000, or $0.16 per diluted share, in the first quarter of 2005.
Non-GAAP Earnings
Non-GAAP net income for all periods in 2006 and 2005 excludes the after-tax impact of (i) non-cash acquisition expense for amortization of intangibles; and (ii) stock based compensation expense associated with the expensing of stock options in accordance with FAS 123(R) and restricted stock expense. Non-GAAP net income for the first quarter of 2006 was $10,259,000, or $0.22 per diluted share, compared to $9,383,000, or $0.20 per diluted share, in the first quarter of 2005.
"Our first quarter financial results show the new products, particularly the Proventia Intrusion Prevention System, driving increased revenue, appealing to new customers, gaining market share, and performing well in the industry," said Thomas Noonan, president and CEO of Internet Security Systems. "In general, the financial results reflect the movement away from legacy products toward the platform model, which we strongly believe is the future of security. Our integrated platform approach allows customers to leverage synergies between complementary technologies, thereby obtaining more comprehensive, intelligent protection.
Business Outlook
The following Business Outlook is based on current expectations. The statements in this Business Outlook are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this press release.
During the quarter, ISS' corporate representatives may reiterate the company's published Business Outlook during private meetings with investors, investment analysts, the media and others. At the same time, ISS will keep its most current earnings release and any subsequent press releases containing the then current Business Outlook publicly available on its Web site at www.iss.net. Prior to the start of ISS' quiet period for the second quarter of 2006, the public can continue to rely on the Business Outlook set forth in this press release as being ISS' current expectations on matters covered, unless ISS publishes a notice stating otherwise. During the quiet period, ISS and its corporate representatives will not comment concerning the previously published Business Outlook. During the quiet period, the company's press releases and filings with the SEC on Forms 10-K and 10-Q should be considered historical, speaking as of prior to the quiet period only and not subject to update by the company. ISS' quiet period at the end of the second quarter is expected to run from June 15, 2006 until financial results are released in July 2006.
This business outlook assumes that the enterprise spending environment remains consistent with ISS' experience in the first quarter 2006. This business outlook also assumes that the competitive landscape will not change significantly during 2006, recognizing that there will continue to be competitive alternatives to our product offerings.
For the year ending December 31, 2006, ISS currently expects to achieve revenues in the range of $358,000,000 to $368,000,000. GAAP net income is expected to be in the range of $0.66 to $0.72 per diluted share. Non-GAAP net income is expected to be in the range of $0.94 to $1.00 per diluted share.
For the quarter ending June 30, 2006, ISS currently expects to achieve revenues in the range of $84,000,000 to $87,000,000. GAAP net income is expected to be in the range of $0.13 to $0.15 per diluted share. Non-GAAP net income is expected to be in the range of $0.21 to $0.23 per diluted share.
Non-GAAP net income excludes: (i) non-cash acquisition related charges (net of taxes), for amortization of intangibles, estimated to be $1,000,000 for the quarter ending June 30, 2006 and $3,300,000 for the year ending December 31, 2006; and (ii) compensation expense (net of taxes) associated with the expensing of stock options in accordance with FAS 123(R) and restricted stock expenses, estimated to be approximately $2,600,000 or $0.06 per diluted share for the quarter ending June 30, 2006 and approximately $9,500,000 or $0.21 per diluted share for the year ending December 31, 2006.
Non-GAAP financial measures used in this press release are reconciled to the appropriate GAAP measures in the tables contained in the Consolidated Statements of Operations and the Business Outlook Reconciliation included with this press release. Reconciliation information can also be found in ISS' Form 8-K filed today with the Securities and Exchange Commission and available through ISS' Web site at www.iss.net or the Securities and Exchange Commission Web site at www.sec.gov.
Earnings Conference Call
The Company's conference call regarding this press release is being held Tuesday, April 25, 2006 at 4:30 p.m. Eastern Time and can be accessed as follows:
DATE/TIME: Tuesday, April 25, 2006 at 4:30 p.m. ET
DIAL IN: Domestic 800-289-0529
International +1-913-981-5523
Pass code 4202512
A live Webcast of this conference call will be available at www.iss.net and the archived Webcast will remain accessible on the ISS Web site for one year. An audio rebroadcast of the teleconference will be available through May 2, 2006.
REBROADCAST DIAL IN: Domestic 888-203-1112
International +1-719-457-0820
Pass code 4202512
Additional investor information can be accessed on the Internet Security Systems(tm) Web site or by contacting the Investor Relations department at +1-404-236-4053.
About Internet Security Systems, Inc.
Internet Security Systems, Inc. (ISS) is the trusted security advisor to thousands of the world's leading businesses and governments, providing preemptive protection for networks, desktops and servers. An established leader in security since 1994, ISS' integrated security platform automatically protects against both known and unknown threats, keeping networks up and running and shielding customers from online attacks before they impact business assets. ISS products and services are based on the proactive security intelligence of its X-Force® research and development team - the unequivocal world authority in vulnerability and threat research. ISS' product line is also complemented by comprehensive Managed Security Services. For more information, visit the Internet Security Systems Web site at www.iss.net or call +32 (0)2 479 67 97.
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Forward-Looking Statements
This press release, other than historical information, includes forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Some of these forward-looking statements appear in our Business Outlook - specifically, our revenue and GAAP and non-GAAP net income estimates for the second quarter and full year 2006. The risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the following: the level of demand for ISS' products; customer budgets; the volume and timing of orders; the mix of products sold and whether revenue is recognized upon sale or deferred to subsequent periods; product and price competition; risks concerning the rapid change of technology; ISS' ability to develop new and enhanced products; disruption from introducing new products; acceptance of new and enhanced products by customers; reliance on contract manufacturers to produce ISS appliance products; availability of component parts of appliance products; ISS' ability to accurately forecast and produce demanded quantities of its appliance products and models; reliance on distribution channels through which ISS' products are sold; ISS' ability to integrate acquisitions or investments; ISS' ability to attract and retain key personnel; changes in accounting policies, standards, guidelines or principles that may be adopted by regulatory agencies or the Financial Accounting Standards Board (including without limitation the impact of expensing stock options); the assertion of infringement claims with respect to ISS' intellectual property; foreign currency exchange rates; and general economic factors. These risks and others are discussed in ISS' periodic filings with the Securities and Exchange Commission, including ISS' 2005 Annual Report on Form 10-K. These filings can be obtained either by contacting ISS Investor Relations or through ISS' Web site at www.iss.net or the Securities and Exchange Commission's Web site at www.sec.gov.
Non-GAAP Financial Measures
ISS believes that Non-GAAP net income, which excludes the after-tax effect of non-cash acquisition related expenses and stock option expensing relating to FAS 123(R), is an additional meaningful measure of operating performance. Non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with generally accepted accounting principles. ISS believes that its presentation of Non-GAAP net income provides useful information to investors as a measure of operating performance basic to its ongoing operations, which is more comparable from period to period without the charges related to occasional acquisition activity. ISS uses non-GAAP net income measures to evaluate its internal performance, including as a basis for calculating incentive compensation.
Internet Security Systems is a trademark and X-Force and Proventia are registered trademarks of Internet Security Systems, Inc.