SurfControl, the world leading Internet security company providing enterprise Web and e-mail filtering, reported financial results for the second fiscal quarter of 2005, ending 31 December 2004.
Revenue for the second fiscal quarter of 2005 increased 17% to $24.7 million from $21.2 million for the second quarter of 2004. Revenues for the half-year to 31 December 2004 increased 15% to $47.1 million compared to $40.8 million for the same period last year.
Free cash flow remained strong, the company has no debt, and ended the quarter with $89.9 million in cash. Full details of the second quarter financial results are available on the "Financial Information" page in the Investor section of the company`s Web site at www.surfcontrol.com.
"Enterprises recognise that Internet threats can come from any access point or through any connected system, and security solutions must provide a layered defence capable of stopping an evolving mix of threats that may be known or unknown, internal to a company or even targeted specifically at their business. These are the types of Internet threats that SurfControl`s products stop," said Steve Purdham, chief executive officer at SurfControl.
Market drivers
* Unrelenting attacks on corporate e-mail systems: Spam volume is at an all time high and the threats are becoming increasingly malicious. Phishing attacks designed to lure users to disclose confidential information are accelerating, and denial-of-service attacks, dictionary harvest attacks, and mail floods are more widely used by hackers and spammers.
* Disappearing perimeter/P2P applications: Enterprise perimeters have disappeared as a result of the proliferation of wireless LANs, wireless hotspots, and peer-to-peer applications such as instant messaging (IM). One in six organisations has successfully had a virus, worm or other malicious content enter through IM according to Osterman Research.
* New threats drive demand for multi-layered security: IDC estimates the Secure Content Market will grow to $7.5 billion by 2008 with the Web and e-mail filtering segments growing by 23% and 34% CAGR respectively, driven by emerging threats such as spyware and phishing.
Company highlights
* Customers: During the quarter, SurfControl added more than 1 100 new customers, including significant growth in enterprise renewal sales. Reflecting the company`s enterprise growth, new customers included Premier Medical, Brinks, Inc, Suzuki, China Southern Airlines Co Ltd, United Broadcasting Corporation Thailand, Daimler Chrysler, British Olympic Association, British Nuclear Group, and NSW Attorney Generals Department.
* Launch of RiskFilter appliance: SurfControl`s market strategy is focused on delivering new products and platforms that provide layered content security. This quarter represents the first full quarter in which RiskFilter has been available and the market reaction has been positive from both end customers and the reseller channel. A building pipeline and a demonstrably shorter sales cycle than software indicates good sequential growth in following quarters. Feedback from customers and resellers indicates ease-of-deployment, scalability, performance, value, an expanded range of models and broader availability through a growing reseller channel as the primary drivers for RiskFilter`s early success.
* Industry recognition: SurfControl received the 2004 Product Line Strategy Leadership Award for Total Content Filtering from Frost & Sullivan, a leading technology research firm. The company was selected due to the completeness and robustness of its product and service offering, recognising the company`s vision for extending its expertise beyond traditional Web filtering to provide multi-layered content protection. SurfControl Web Filter was honoured in the "Best Web Usage Monitor" category in Redmond Magazine`s 2005 Reader Survey. In addition, SurfControl E-mail Filter was recognised as a preferred product in the "Best Secure Messaging Tool or Service" category. Both SurfControl Web and E-mail Filters are finalists in the Secure Computing Awards to be announced at the 2005 RSA Conference.
View quarterly statement with financials
Networks Unlimited is the local distributor of SurfControl in southern Africa and can be contacted on 021 531 6000 for more information.
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Networks Unlimited provides product solutions in the areas where efficient networking communications is the key to success. Our solutions are focused on providing tangible results to our clients through network management, productivity and security solutions.
SurfControl
SurfControl is the world`s number one Web and e-mail filtering company, offering a total content security solution. SurfControl combines Web and e-mail filtering technology with the industry`s largest, most accurate and relevant content database and adaptive reasoning tools to automate content recognition.
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