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ActivIdentity Reports Fourth Quarter and Fiscal 2007 Financial Results
FREMONT, California, December 5 /PRNewswire/ -- - Company delivers 12 percent annual revenue growth 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. (Logo: http://www.newscom.com/cgi-bin/prnh/20051108/SFTU161LOGO) Revenue for the quarter ended September 30, 2007 was US$13.8 million, compared to US$17.9 million for the quarter ended September 30, 2006. Revenue for the year ended September 30, 2007 was US$59.6 million, compared to US$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 US$1.7 million, or US$0.04 per basic and diluted share, compared to a net loss of US$0.3 million, or US$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 US$9.3 million or US$0.20 per basic and diluted share, compared to a net loss of US$22.5 million or US$0.50 per share for the prior year. Fiscal Fourth Quarter and Fiscal Year Financial Highlights: -- Operating expenses during the quarter were US$13.6M. For the year, operating expenses were down 5% compared to the prior year, on increased revenue. -- Gross profit in FY07 was US$39.0 million compared to US$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 US$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. -- 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 +1-877-292-2820 and enter conference ID 24207155. To access the conference call outside the U.S. or Canada please dial +1-706- 679-4390 and enter conference ID 24207155. To access the audio replay, please dial +1-800-642-1687 or, from outside the U.S., +1-706-645-9291 and enter conference ID number 24207155. About ActivIdentity ActivIdentity(R) 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 http://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. 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. (All amounts in US dollars unless otherwise noted.) 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. ActivIdentity Corporation Condensed Consolidated Statement of Operations (in thousands, except per share amounts) Three Months Twelve Months Ended Ended September 30, 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 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 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 Amortization of acquired intangible assets 42 48 186 719 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. 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 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. Web site: http://www.actividentity.com
