ActivIdentity Reports First Quarter Fiscal 2010 Financial Results
FREMONT, Calif. – February 4th, 2010 – ActivIdentity Corporation (NASDAQ: ACTI), a global leader in strong authentication and credential management, reported revenue for the quarter ended December 31, 2009, of $14.7 million, compared to $16.3 million for the quarter ended December 31, 2008, and $14.5 million for the quarter ended September 30, 2009.
ActivIdentity’s net loss for the quarter ended December 31, 2009, was ($0.3) million, or ($0.01) per basic and diluted share, compared to a net loss of ($4.5) million, or ($0.10) per basic and diluted share for the three months ended December 31, 2008. Net income for the quarter ended December 31, 2009, included realized gains from the sale of auction rate securities totaling $2.4 million.
ActivIdentity’s operating loss was ($2.9) million for the quarter ended December 31, 2009 compared to an operating loss of ($3.1) million for the quarter ended December 31, 2008, and ($1.3) million for the quarter ended September 30, 2009. Adjusted EBITDA was ($1.2) million for the quarter ended December 31, 2009, a decrease of $1.5 million compared to the quarter ending December 31, 2008, and a decrease of $1.7 million compared to the quarter ending September 31, 2009. General and administrative expenses, in the quarter ending December 31, 2009, included significant legal expenses related to a intellectual property litigation and to the acquisition of CoreStreet, Ltd., which closed on December 14, 2009. Adjusted EBITDA is a Non-GAAP measure and is defined as Operating Income adjusted for non-recurring and non-cash items such as stock-based compensation expense, depreciation, amortization of intangibles, severance and asset impairments.
“The economic climate remains challenging. We continue to see existing and prospective customers delay capital expenditures to future quarters,” said Grant Evans, chief executive officer and chairman of ActivIdentity. “We have and will continue to maintain fiscal discipline. Our focus has been on improving our operations and sales execution and we are confident that we will see gradual improvement in the coming quarters.”
GAAP RESULTS Three Months Ended
(In millions except per share data) Dec. 31 Sep. 30 Dec. 31
2009 2009 2008
Revenue $14.7 $14.5 $16.3
Net Income (Loss) ($0.3) ($0.3) ($4.5)
(Loss) Earnings Per Share – Basic ($0.01) ($0.01) ($0.10)
(Loss) Earnings Per Share – Diluted ($0.01) ($0.01) ($0.10)
Adjusted EBITDA ($1.2) $0.5 $0.3
ActivIdentity is presenting non-GAAP numbers in this press release as it believes the one-time charges for non-recurring items and the non-cash charges distort the period to period results and that investors will benefit from the comparison of information from period to period without these items. Please refer to the GAAP to non-GAAP reconciliation table for further detail. Certain financial results are subject to the application of accounting estimates, especially with regards to fair value accounting. Management has used what it believes to be appropriate valuation techniques to assess the fair value of impaired investments and the fair value of undelivered elements in multi-element software arrangements.
Conference Call Details
ActivIdentity will host its Fiscal First Quarter conference call on Thursday, February 4, at 5:00 PM Eastern Standard Time / 2:00 PM Pacific Standard Time.
To access the conference call within the U.S. or Canada, please dial (866) 393-1796 and enter conference ID 53710995. To access the conference call outside the U.S. or Canada please dial (706) 679-9681 and enter conference ID 53710995.
A replay of the conference call will be available approximately two hours after the conclusion of the call at www.actividentity.com.
ActivIdentity Corporation is a global leader in credential management and strong authentication, providing solutions to confidently establish a person’s identity when interacting digitally. For more than two decades the company’s experience has been leveraged by security-minded organizations in large-scale deployments such as the U.S. Department of Defense, Nissan, and Saudi Aramco. The company’s customers have issued more than 100 million credentials, securing the holder’s digital identity. ActivIdentity is headquartered in Silicon Valley, California. For more information, visit www.actividentity.com.
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ActivIdentity is a registered trademark 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.
Safe Harbor Statement
The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties including, but not limited to, statements regarding ActivIdentity’s ability to achieve its fiscal year guidance and continued customer acceptance of its products. These risks and uncertainties include risks relating to uncertainty in the economy and its impact on customer deployments of our products, customer adoption of ActivIdentity’s new products, continued expense reductions from ActivIdentity’s various restructuring and cost control measures, changes to our management team, the use of estimates and assumptions in our financial reporting, and other risks identified under the caption "Risk Factors" in our most recent Annual Report on Form 10-K, and as may be amended 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 us and on the SEC website at www.sec.gov. Actual results, events and performance may differ materially from our forward-looking statements and final results may vary from our preliminary reports. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ActivIdentity disclaims any intention to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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