EX-99.1 2 a07-30771_1ex99d1.htm EX-99.1

Exhibit 99.1

 

ActivIdentity Reports Fourth Quarter and

Fiscal 2007 Financial Results

 

Company delivers 12 percent annual revenue growth

 

 

FREMONT, Calif., December 5, 2007— ActivIdentity Corporation (NASDAQ: ACTI), a global leader in digital identity assurance, today announced its financial results for the fourth quarter and fiscal year ended September 30, 2007.

 

Revenue for the quarter ended September 30, 2007 was $13.8 million, compared to $17.9 million for the quarter ended September 30, 2006. Revenue for the year ended September 30, 2007 was $59.6 million, compared to $53.4 million for the prior year, representing year-over-year revenue growth of 12%.

 

Net loss for the quarter ended September 30, 2007 was $1.7 million, or $0.04 per basic and diluted share, compared to a net loss of $0.3 million, or $0.01 per basic and diluted share for the three months ended September 30, 2006. Net loss for the year ended September 30, 2007 was $9.3 million or $0.20 per basic and diluted share, compared to a net loss of $22.5 million or $0.50 per share for the prior year.

 

Fiscal Fourth Quarter and Fiscal Year Financial Highlights:

•                  Operating expenses during the quarter were $13.6M. For the year, operating expenses were down 5% compared to the prior year, on increased revenue.

•                  Gross profit in FY07 was $39.0 million compared to $33.6 million in FY06, representing a 16% increase year over year. Gross margins were 65% in the current year versus 63% in FY 06.

•                  Cash, cash equivalents, and short-term investments were $121.7 million at September 30, 2007.

•                  Net loss per share declined 60% from the prior year.

 

“We continue to work diligently to improve our top-line as we see the current demand environment for smart cards growing. During our fiscal year, we expanded our existing relationships with BT, Sun, HP and EDS which contributed to our revenue growth and to the expansion of our end customer base.  Importantly, we continue to see positive market trends and the uptake of our Smart Employee Identification solutions in Europe is growing,” said Thomas Jahn, ActivIdentity’s CEO.

 

 

Fiscal Year 2007 Business Highlights

 

•                  ActivIdentity strengthened its relationship with HP, an OEM partner in the United States, as the company’s Smart Employee ID offerings continue to be embedded into various applications in the enterprise.

•                  The company strengthened its pipeline with Sun Microsystems by providing CMS and Secure Login to the Sun Identity Management Suite.

 

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•                  ActivIdentity was selected as a subcontractor to be part of the EDS GSA Managed Service contract, strengthening its presence with the US Government.

•                  In Europe, Actividentity grew its base of Smart Employee ID solutions for regional military and law enforcement organizations. In the United Kingdom, over one-third of the country’s police organizations are Actividentity customers.

•                  Also, in Europe we gained traction with our strong authentication solutions by securing an agreement with BT, one of the world’s leading providers of communications solutions and services.

 

Conference Call Details

 

ActivIdentity will host its earnings conference call to discuss results of its fourth fiscal quarter and fiscal year ended September 30, 2007 at 1:30 p.m. PST (4:30 p.m. EST) this afternoon.  There will be a live audio web cast and dial in to the conference call.

 

Live audio web cast:  The conference call web cast will be available on the investor relations section of the Company’s website at http://www.actividentity.com/en/investors/index.php.  A replay of the web cast will be available approximately two hours after the conclusion of the call through December, 26 2007.

 

Dial-in conference call:  To access the conference call within the U.S. or Canada, please dial (877) 292-2820 and enter conference ID 24207155. To access the conference call outside the U.S. or Canada please dial (706) 679-4390 and enter conference ID 24207155. To access the audio replay, please dial (800) 642-1687 or, from outside the U.S., (706) 645-9291 and enter conference ID number 24207155.

 

About ActivIdentity

ActivIdentity® Corporation (NASDAQ: ACTI) is a trusted provider of identity assurance solutions for the enterprise, government, healthcare, and financial services markets worldwide. The company provides the only fully-integrated platform enabling organizations to issue, manage and use identity devices and credentials for secure access, secure communications, legally binding digital transactions, as well as intelligent citizen services.

 

ActivIdentity customers experience multiple benefits including increased network security, protection against identity theft and online fraud, enhanced workforce productivity, business process efficiencies, and regulatory compliance. ActivIdentity solutions include Smart Employee ID, Enterprise Single Sign On, Strong Authentication, Secure Information and Transactions, and Smart Citizen ID. More than 15 million users and 4,000 customers worldwide rely on solutions from ActivIdentity. Headquartered in Fremont, Calif., the company has development centers in the United States, Australia, France, and sales and service centers in more than ten countries. For more information, visit www.actividentity.com.

 

# # #

 

ActivIdentity and ActivCard are registered trademarks in the United States and/or other countries. All other trademarks are the property of their respective owners in the United States and/or other countries.

 

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Forward-Looking Statements Safe Harbor

The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include risks relating to our history of losses and need for revenue growth and cost containment, the integration of acquired business and technologies, the variability of our quarterly results, and other risks identified under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, and in subsequent Quarterly Reports on Form 10-Q, which are filed with the United States Securities and Exchange Commission (SEC). Copies of these filings are available from the Company and on the SEC’s Web site at www.sec.gov. Actual results, events and performance may differ materially from our forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

Investor Relations:

Mahima Patnaik

ActivIdentity Corporation

510-745-6275

 

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ActivIdentity Corporation

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

September 30,

 

September 30,

 

 

 

2007

 

2006(1)

 

 

 

Unaudited

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

30,639

 

$

11,477

 

Short-term investments

 

91,084

 

116,570

 

Accounts receivable, net

 

14,566

 

18,048

 

Inventories

 

2,146

 

1,633

 

Prepaid and other current assets

 

2,077

 

2,976

 

 

 

 

 

 

 

Total current assets

 

140,512

 

150,704

 

 

 

 

 

 

 

Property and equipment, net

 

4,267

 

3,612

 

Other intangible assets, net

 

6,695

 

9,830

 

Other long-term assets

 

1,104

 

968

 

Goodwill

 

35,874

 

35,874

 

 

 

 

 

 

 

Total assets

 

$

188,452

 

$

200,988

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,116

 

$

2,001

 

Accrued compensation and related benefits

 

6,942

 

6,425

 

Current portion of accrual for restructuring liability

 

733

 

750

 

Accrued and other current liabilities

 

3,484

 

4,585

 

Current portion of deferred revenue

 

10,349

 

12,788

 

 

 

 

 

 

 

Total current liabilities

 

23,624

 

26,549

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

2,752

 

1,945

 

Restructuring liability, net of current portion

 

1,574

 

2,249

 

Long-term deferred rent

 

705

 

919

 

 

 

 

 

 

 

Total liabilities

 

28,655

 

31,662

 

 

 

 

 

 

 

Minority interest

 

354

 

373

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

423,288

 

420,573

 

Accumulated deficit

 

(246,501

)

(237,203

)

Accumulated other comprehensive loss

 

(17,344

)

(14,417

)

 

 

 

 

 

 

Total stockholders’ equity

 

159,443

 

168,953

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

188,452

 

$

200,988

 

 

(1) Derived from audited consolidated financial statements.

 

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ActivIdentity Corporation

Condensed Consolidated Statement of Operations

(in thousands, except per share amounts)

 

 

 

Three Months

 

Twelve Months

 

 

 

Ended September 30,

 

Ended September 30,

 

 

 

2007

 

2006

 

2007

 

2006(1)

 

 

 

(Unaudited)

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

Software

 

$

5,768

 

$

10,278

 

$

23,308

 

$

25,324

 

Hardware

 

3,116

 

3,431

 

16,894

 

14,294

 

License

 

—

 

—

 

—

 

—

 

Maintenance and support

 

4,886

 

4,159

 

19,351

 

13,757

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

13,770

 

17,868

 

59,553

 

53,375

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Software

 

936

 

1,065

 

3,866

 

4,642

 

Hardware

 

1,500

 

2,088

 

9,036

 

8,541

 

License

 

—

 

—

 

—

 

—

 

Maintenance and support

 

1,298

 

1,068

 

4,704

 

3,865

 

Amortization of acquired developed technology and patents

 

618

 

783

 

2,949

 

2,772

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenue

 

4,352

 

5,004

 

20,555

 

19,820

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

9,418

 

12,864

 

38,998

 

33,555

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

6,229

 

6,394

 

25,282

 

26,889

 

Research and development

 

5,022

 

5,219

 

19,935

 

19,560

 

General and administration

 

2,340

 

2,913

 

12,124

 

12,647

 

Restructuring expense

 

—

 

(9

)

—

 

805

 

In-process research and development

 

—

 

—

 

—

 

—

 

Amortization of acquired intangible assets

 

42

 

48

 

186

 

719

 

Impairment of goodwill

 

—

 

—

 

—

 

—

 

Write-down of acquired intangible assets

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

13,633

 

14,565

 

57,527

 

60,620

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(4,215

)

(1,701

)

(18,529

)

(27,065

)

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

Interest income, net

 

1,714

 

1,364

 

6,208

 

4,694

 

Other income (expenses), net

 

1,009

 

182

 

3,440

 

173

 

 

 

 

 

 

 

 

 

 

 

Total other income, net

 

2,723

 

1,546

 

9,648

 

4,867

 

 

 

 

 

 

 

 

 

 

 

Loss from operations before income taxes and minority interest

 

(1,492

)

(155

)

(8,881

)

(22,198

)

Income taxes

 

(274

)

(195

)

(429

)

(378

)

Minority interest

 

20

 

7

 

12

 

104

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,746

)

$

(343

)

$

(9,298

)

$

(22,472

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.04

)

$

(0.01

)

$

(0.20

)

$

(0.50

)

 

 

 

 

 

 

 

 

 

 

Shares used to compute basic and diluted net loss per share

 

45,728

 

45,573

 

45,694

 

45,307

 

 

(1) Derived from audited consolidated financial statements.

 

 

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ActivIdentity Corporation

Condensed Consolidated Statement of Cash Flows

(in thousands)

 

 

 

 

 

 

 

 

Twelve Months

 

 

 

Ended September 30,

 

 

 

2007

 

2006 (1)

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

Net loss

 

$

(9,298

)

$

(22,472

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

1,576

 

1,504

 

Amortization of acquired developed technology and patents

 

2,949

 

2,772

 

Amortization of acquired intangible assets

 

186

 

719

 

Non-realized foreign exchange gain

 

(3,610

)

(518

)

Stock-based compensation expense

 

2,518

 

3,308

 

Loss on disposal of property and equipment

 

25

 

173

 

Minority interest in ActivIdentity Europe S.A

 

(12

)

(104

)

Changes in:

 

 

 

 

 

Accounts receivable

 

4,254

 

(10,713

)

Inventories

 

(313

)

83

 

Prepaid and other current assets

 

924

 

574

 

Accounts payable

 

(135

)

250

 

Accrued compensation and related benefits

 

4

 

244

 

Accrual for restructuring liability

 

(710

)

(1,219

)

Accrued and other current liabilities

 

(1,795

)

(15

)

Deferred revenue

 

(2,065

)

6,210

 

Deferred rent

 

(101

)

(64

)

 

 

 

 

 

 

Net cash used in operations

 

(5,603

)

(19,268

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(2,099

)

(2,147

)

Cash used in acquisition of patents and related intellectual property

 

—

 

(3,998

)

Purchases of short-term investments

 

(156,721

)

(118,839

)

Proceeds from sales and maturities of short-term investments

 

182,795

 

143,881

 

Cash used in acquisitions, net of cash received

 

—

 

(746

)

Acquisition of ActivCard Europe S.A. minority interest

 

—

 

(561

)

Other long-term assets

 

(83

)

(197

)

 

 

 

 

 

 

Net cash provided by investing activities

 

23,892

 

17,393

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from exercise of options, rights and warrants

 

191

 

70

 

Net (decrease) increase in short-term borrowings

 

—

 

—

 

 

 

 

 

 

 

Net cash provided by financing activities

 

191

 

70

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

682

 

115

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

19,162

 

(1,690

)

Cash and cash equivalents, beginning of period

 

11,477

 

13,167

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

30,639

 

$

11,477

 

 

 

 

 

 

 

(1) Derived from audited consolidated financial statements.

 

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