Trend Micro Reports First Quarter Results

For the first quarter, Trend Micro posted consolidated net sales of 22,915 million Yen (or US $244 million, 93.79 JPY = 1USD). The company posted operating income of 7,028 million Yen (or US $74 million) and net income of 4,821 million Yen (or US $51 million) for the quarter. These figures reflect a 5 percent increase in net income compared to the same period a year ago.

Japan region continued to experience flat sales growth at a zero percent rate compared with the same period last year. Even though North American sales achieved healthy, year-by-year growth, it was negatively affected by the Japanese Yen this quarter, which resulted in a four percent sales revenue decrease. In Europe, Asia Pacific, and Latin America regions, the sales growth ratio decreased by double digits compared to the same period last year mainly because of foreign currency impact.

"We made some important strategic alliances this quarter that further our ability to bring to market innovative products and solutions," said Eva Chen, CEO. "The combination of the BigFix Platform with Trend Micro endpoint security positions us not only to capture market share from some of our biggest competitors, but to set a new standard for endpoint protection. We also teamed with Cisco to deliver the Home Network Defender, one of the first Internet software security and parental controls solution to be embedded on a wireless home router. Moving forward, we will continue to build upon these relationships to expand our security product offerings--our recent acquisition of Third Brigade is another example."

Based on information currently available to the company, consolidated net sales for the second quarter ending June 30, 2009 is expected to be 23,800 million Yen (or US $250 million, based on an exchange rate of 95 JPY = 1USD). Operating income and net income are expected to be 7,200 million Yen (or US $75 million) and 4,600 million Yen (or US $48 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.

First Quarter Business Highlights

In January, Trend Micro teamed with BigFix to deliver a comprehensive and modular Trend Micro endpoint security management solution that scales to the requirements of very large enterprises with more than 10,000 endpoints. The first in a series of new endpoint modules available was the Trend Micro Web Protection Module, designed to proactively protect endpoints against Web threats and provide security enhancements to the BigFix platform.

In February, Trend Micro and Cisco helped revolutionize home internet security with the announcement of Home Network Defender -- Trend Micro's Internet security software integrated into Linksys by Cisco wireless routers. This spring, Trend Micro launched its first Russian office in Moscow. With the third largest IT market in EMEA, Russia has been within Trend Micro's long-term strategic vision in taking the Trend Micro Smart Protection Network to a new market with unmet security needs.