Forward Looking Statements:
This press release contains statements that may relate to expected future results and business trends that are based upon AuthenTec’s current estimate, expectations, and projections about the industry, and upon management’s beliefs, and certain assumptions it has made that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements relating to our expectations that the Company will be able to capitalize on synergistic opportunities between our ESS and Smart Sensor businesses, design wins resulting in new product shipments and the timing and volume of such shipments and revenue, receiving TruePrint sensor revenue from 9 of the top 10 PC OEMs next year as well as several wireless manufacturers, generating our first TrueSuite software revenues based on the seven PC OEMs we now count as future customers, revenue, operating expenses and net loss for the third quarter, growth in Smart Sensor revenue in the fourth quarter and growth in 2011. Words such as “anticipates,” “guidance,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “prospects,” “outlook,” “forecast,” and variations of these words or similar expressions are intended to identify “forward-looking statements.” In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances, including any underlying assumptions, are “forward-looking statements.” Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, the Company’s actual results may differ materially and adversely from those expressed in any “forward-looking statement” as a result of various factors. These factors include, but are not limited to: the Company’s ability to integrate the SafeNet embedded business, the Company’s ability to operate the acquired business profitably, demand for, and market acceptance of, new and existing fingerprint sensors, identity management software and embedded security products, the Company’s ability to secure design wins for enterprise and consumer laptops and wireless devices, customer design wins materializing into production programs, the timely introduction of new products, the rate at which the Company increases its activity and opportunities in the wireless market, and additional opportunities in various markets for applications that might use AuthenTec’s products, and changes in product mix, as well as other risks detailed from time to time in its SEC filings, including those described in AuthenTec’s annual report on Form 10-K filed with the SEC on March 17, 2010. These “forward-looking statements” are made only as of the date hereof, and the Company undertakes no obligation to update or revise the “forward-looking statements,” whether as a result of new information, future events or otherwise.
About AuthenTec
AuthenTec provides security, identity management and touch control solutions for enterprise and consumer applications. The Company's smart sensor products and security solutions are used in virtually every aspect of life, from the PC on your desk to the mobile device in your hand to the server in the cloud. AuthenTec's newest generation of TruePrint® smart sensors, TrueSuite® identity management software and TrueProtect™ embedded security products (formerly SafeNet Embedded Security Solutions) provide developers and users secure and convenient ways to manage today's rapidly evolving digital identities and security needs. For more information, visit www.authentec.com or follow us at twitter.com/authentecnews.
AuthenTec, Inc. |
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Consolidated Statements of Operations | |||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Table 1 | |||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||
July 2, | April 2, | July 3, | July 2, | July 3, | |||||||||||||||||||||
2010 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
Revenue | $ | 10,721 | $ | 9,176 | $ | 8,446 | $ | 19,897 | $ | 15,484 | |||||||||||||||
Cost of revenue | 5,210 | 4,726 | 4,557 | 9,936 | 8,220 | ||||||||||||||||||||
Gross profit | 5,511 | 4,450 | 3,889 | 9,961 | 7,264 | ||||||||||||||||||||
51.4 | % | 48.5 | % | 46.0 | % | 50.1 | % | 46.9 | % | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
Research and development | 4,742 | 3,986 | 3,642 | 8,728 | 7,447 | ||||||||||||||||||||
Selling and marketing | 3,306 | 2,266 | 1,786 | 5,572 | 3,806 | ||||||||||||||||||||
General and administrative | 2,073 | 2,953 | 4,303 | 5,026 | 6,523 | ||||||||||||||||||||
Total operating expenses | 10,121 | 9,205 | 9,731 | 19,326 | 17,776 | ||||||||||||||||||||
Operating loss | (4,610 | ) | (4,755 | ) | (5,842 | ) | (9,365 | ) | (10,512 | ) | |||||||||||||||
Other income (expense): | |||||||||||||||||||||||||
Impairment on investments | - | - | - | - | (28 | ) | |||||||||||||||||||
Earnout adjustment | 729 | - | - | 729 | - | ||||||||||||||||||||
Interest income | 44 | 40 | 89 | 84 | 265 | ||||||||||||||||||||
Total other income (expense), net | 773 | 40 | 89 | 813 | 237 | ||||||||||||||||||||
Provision for income taxes | 63 | - | - | 63 | - | ||||||||||||||||||||
Net Loss | $ | (3,900 | ) | $ | (4,715 | ) | $ | (5,753 | ) | $ | (8,615 | ) | $ | (10,275 | ) | ||||||||||
Net loss per share: | |||||||||||||||||||||||||
Basic | $ | (0.13 | ) | $ | (0.16 | ) | $ | (0.20 | ) | $ | (0.29 | ) | $ | (0.36 | ) | ||||||||||
Diluted | $ | (0.13 | ) | $ | (0.16 | ) | $ | (0.20 | ) | $ | (0.29 | ) | $ | (0.36 | ) | ||||||||||
Shares used in computing net loss per common share: | |||||||||||||||||||||||||
Basic | 29,912 | 29,196 | 28,658 | 29,532 | 28,652 | ||||||||||||||||||||
Diluted | 29,912 | 29,196 | 28,658 | 29,532 | 28,652 | ||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||
July 2, | April 2, | July 3, | July 2, | July 3, | |||||||||||||||||||||
2010 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
Other Financial Metrics: | |||||||||||||||||||||||||
Stock-based compensation expense: | |||||||||||||||||||||||||
Cost of revenue | 50 | 64 | 74 | 114 | 132 | ||||||||||||||||||||
Research and development | 173 | 229 | 267 | 402 | 468 | ||||||||||||||||||||
Selling and marketing | 200 | 248 | 283 | 448 | 486 | ||||||||||||||||||||
General and administrative | 202 | 245 | 324 | 447 | 563 | ||||||||||||||||||||
Costs related to reduction in workforce | |||||||||||||||||||||||||
Research and development | - | - | 22 | - | 141 | ||||||||||||||||||||
Selling and marketing | 415 | - | - | 415 | 91 | ||||||||||||||||||||
General and administrative | - | - | - | - | 3 | ||||||||||||||||||||
Legal and acquisition related costs | |||||||||||||||||||||||||
General and administrative | 601 | 1,336 | 2,601 | 1,937 | 2,601 | ||||||||||||||||||||
Amortization of purchased tangible and intangible assets |
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Cost of revenue |
291 |
89 |
- |
380 |
- |
||||||||||||||||||||
Research and development |
65 |
31 |
- |
96 |
- |
||||||||||||||||||||
Selling and marketing |
130 |
25 |
- |
155 |
- |
||||||||||||||||||||
Impairment on investments | - | - | - | - | 28 | ||||||||||||||||||||
Earnout adjustment | (729 | ) | - | - | (729 | ) | - |
AuthenTec, Inc. | ||||||||||||||||||||
Non-GAAP Financial Information - Consolidated | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Table 2 | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||
July 2, | April 2, | July 3, | July 2, | July 3, | ||||||||||||||||
2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
Net loss on GAAP basis: | $ | (3,900 | ) | $ | (4,715 | ) | $ | (5,753 | ) | $ | (8,615 | ) | $ | (10,275 | ) | |||||
Stock-based compensation expense | 625 | 786 | 948 | 1,411 | 1,649 | |||||||||||||||
Costs related to reduction in workforce | 415 | - | 22 | 415 | 235 | |||||||||||||||
Legal and acquisition related costs | 601 | 1,336 | 2,601 | 1,937 | 2,601 | |||||||||||||||
Amortization of purchased tangible and intangible assets | 486 | 145 | - | 631 | - | |||||||||||||||
Earnout adjustment | (729 | ) | - | - | (729 | ) | - | |||||||||||||
Impairment on investments | - | - | - | - | 28 | |||||||||||||||
Net loss on non-GAAP basis: | $ | (2,502 | ) | $ | (2,448 | ) | $ | (2,182 | ) | $ | (4,950 | ) | $ | (5,762 | ) | |||||
Non-GAAP basic earnings per share | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.20 | ) | |||||
Non-GAAP diluted earnings per share | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.20 | ) |
AuthenTec, Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Table 3 | |||||||||
July 2, | January 2, | ||||||||
2010 | 2009 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 14,994 | $ | 27,482 | |||||
Short-term investments | 24,931 | 24,893 | |||||||
Accounts receivable, net | 5,613 | 3,208 | |||||||
Inventory | 1,729 | 2,245 | |||||||
Other current assets | 1,246 | 1,123 | |||||||
Total current assets | 48,513 | 58,951 | |||||||
Long-term investments | 3,244 | 3,173 | |||||||
Purchased intangible assets | 8,327 | 998 | |||||||
Goodwill | 2,497 | — | |||||||
Other long-term assets | 10 | 9 | |||||||
Property and equipment, net | 3,601 | 3,048 | |||||||
Total assets | $ | 66,192 | $ | 66,179 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 4,133 | $ | 2,458 | |||||
Other accrued liabilities | 6,973 | 3,380 | |||||||
Total current liabilities | 11,106 | 5,838 | |||||||
Deferred rent | 529 | 514 | |||||||
Total liabilities | 11,635 | 6,352 | |||||||
Stockholders' equity | |||||||||
Common stock and additional paid in capital | 156,649 | 153,350 | |||||||
Other comprehensive income (loss) | (149 | ) | (195 | ) | |||||
Accumulated deficit | (101,943 | ) | (93,328 | ) | |||||
Total stockholders' equity | 54,557 | 59,827 | |||||||
Total liabilities and stockholders' equity | $ | 66,192 | $ | 66,179 |