ActivIdentity Reports Second Quarter Fiscal 2010 Financial Results
Fremont, Calif., May 06, 2010 - ActivIdentity Corporation (NASDAQ: ACTI), a global leader in strong authentication and credential management, reported revenue for the quarter ended March 31, 2010, of $14.2 million, compared to $16.1 million for the quarter ended March 31, 2009, and $14.7 million for the quarter ended December 31, 2009.
ActivIdentity's net loss for the quarter ended March 31, 2010, was ($4.0) million, or ($0.08) per basic and diluted share, compared to a net loss of ($2.8) million, or ($0.06) per basic and diluted share for the three months ended March 31, 2009. Net loss for the quarter ended March 31, 2010, was negatively impacted by $0.6 million in foreign exchange losses and $0.5 million write-down of auction rate securities.
ActivIdentity's operating loss was ($3.0) million for the quarter ended March 31, 2010 compared to an operating loss of ($1.7) million for the quarter ended March 31, 2009, and ($2.9) million for the quarter ended December 31, 2009. Adjusted EBITDA was ($1.0) million for the quarter ended March 31, 2010, a decrease of $1.7 million compared to the quarter ending March 31, 2009, and an increase of $0.2 million compared to the quarter ending December 31, 2009. General and administrative expenses in the quarter ending March 31, 2010 included significant legal expenses related to intellectual property litigation. Adjusted EBITDA is a Non-GAAP measure and is defined as Operating Income (Loss) 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 and our financial results for the first two fiscal quarters reflect the softer demand that we experienced in certain markets for some of our products. We have managed our expenses exceptionally well and we believe that our fiscal 2010 will show an increase in profitability and modest growth in revenue compared to fiscal 2009," said Grant Evans, chief executive officer and chairman of ActivIdentity. "We believe that the security and compliance market will outpace the total I.T. market growth rate over time. Our focus has been on improving our operations and sales execution and we are confident that we will see gradual improvement."
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 Second Quarter conference call on Thursday, May 6, 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 69251524. To access the conference call outside the U.S. or Canada please dial (706) 679-9681 and enter conference ID 69251524.
A replay of the conference call will be available approximately two hours after the conclusion of the call at www.actividentity.com.
Please click here to access the detailed press release, which includes all the financials.
ActivIdentity Corporation (NASDAQ: ACTI) is a global leader in strong authentication and credential management, 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.# # #
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.
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