MCLEAN, Va., May 16, 2017 /PRNewswire/ -- Cyren (NASDAQ: CYRN)
today announced its first quarter 2017 financial results for the
period ending March 31, 2017.
"Cyren posted another good sales quarter with revenues of
$8.0 million, up 8% year over year,"
said Lior Samuelson, CEO and
Chairman of the Board at Cyren. "We signed more new Security as a
Service customers than in any previous quarter and successfully
launched Cyren Cloud Security 4.0. This release makes it easy for
customers to access and manage Cyren's suite of Internet Security
services via a single integrated platform."
Cyren Cloud Security is the industry's first and only solution
that can deliver web security, email security, DNS-based security,
cloud sandboxing and cloud access security all from a single
unified SaaS platform. The solution is targeted at both SMB/SME and
larger enterprise customers who seek to simplify and integrate the
management of multiple security platforms, and benefit from Cyren's
fastest time-to-protection in the security industry.
First Quarter 2017 Financial Highlights:
- Revenues for the first quarter of 2017 were $8.0 million, up 8% from $7.4 million for the first quarter of 2016.
- GAAP net loss for the first quarter of 2017 was $2.5 million, compared to a net loss of
$1.5 million in the first quarter of
2016 and $2.9 million in the fourth
quarter of 2016.
- GAAP loss per basic and diluted share for the first quarter of
2017 was $0.06, compared to a loss of
$0.04 per basic and diluted share for
the first quarter of 2016 and $0.07
per share in the fourth quarter of 2016.
- Non-GAAP net loss for the first quarter of 2017 was
$2.4 million, compared to a Non-GAAP
net loss of $1.9 million for the
first quarter of 2016 and $1.9
million in the fourth quarter of 2016.
- Non-GAAP loss per basic and diluted share was $0.06 for the first quarter of 2017, compared to
a Non-GAAP loss of $0.05 per share in
first quarter of 2016.
- Operating cash usage during the first quarter was $1.9 million, compared to operating cash flow of
$2.9 million in the first quarter of
2016.
- Net cash flow during the first quarter was $2.9 million, compared to net cash usage of
$2.4 million during the first quarter
of 2016. This includes $6.3 million
aggregate proceeds from financing activies resulting from a
convertible note offering that closed March
27, 2017.
- Cash balance as of March 31, 2017
was $13.5 million, compared to
$10.6 million as of December 31, 2016. The company now has
$6.3 million long-term debt on its
balance sheet as a result of the convertible note offering.
For information regarding the non-GAAP financial measures
discussed in this release, please see "Use of Non-GAAP Financial
Measures" and "Reconciliation of Selected GAAP Measures to Non-GAAP
Measures."
Recent Business Highlights:
- During the first quarter, Cyren added over 60 new Enterprise
SaaS customers using either Cyren WebSecurity (CWS) or Cyren
EmailSecurity (CES). The rate of new customer acquisition for
Cyren's Enterprise solutions is higher than any other single
quarter, and includes competitive wins against Forcepoint, Cisco
(OpenDNS), McAfee and Mimecast.
- Cyren's pipeline for Enterprise SaaS platform customers has
grown over 45% in the last quarter, and the company is targeting to
accelerate new customer acquisition in its Enterprise business over
future quarters.
- The company won a multi-year, multi-million dollar contract
with a large tier 1 managed cloud computing service provider using
Cyren's Threat Intelligence Services, displacing another well-known
security vendor who was the incumbent. The contract will have a
positive revenue impact beginning in the fourth quarter of
2017.
- Cyren renewed and expanded several large Threat Intelligence
Service contracts in the United
States, Europe and
Asia. These include well known
cloud security vendors who are heavily dependent on Cyren's
superior detection technology in order to deliver service to their
enterprise customers.
- Cyren issued $6.3 million
aggregate principal amount of convertible notes with a conversion
price of $2.50 per share,
representing a 25% premium to the $2.00 per share closing price prior to the
offering. The notes are unsecured, unsubordinated obligations and
carry a 5.0% interest rate for a 2.5 year term, payable
semi-annually in 50% cash and 50% cash or ordinary shares at
Cyren's election. Cyren still maintains the ability to sell an
additional $3.7 million of these
convertible notes on the same terms.
- On April 1, 2017 John Becker
formally began his term with Cyren's Board of Directors after being
approved by shareholders in December
2016. John brings over 30 years of security and technology
industry experience to Cyren, including serving as the CEO of
Sourcefire prior to its $2.7 billion
sale to Cisco. John also served as the CEO of ScienceLogic,
Approva, Cybertrust, Trusecure and Axent Technologies.
Financial Results Conference Call:
The company will host a conference call at 10 a.m. Eastern Time (5
p.m. Israel Time) on Tuesday, May 16,
2017.
U.S. Dial-in
Number:
|
1-877-397-0298
|
Israel Dial-in
Number:
|
1-80-925-8243
|
International
Dial-in Number:
|
1-719-325-4853
|
The call will be simultaneously webcast live on the investor
relations section of Cyren's website at www.cyren.com/ir.html, or
by using the following link:
http://public.viavid.com/index.php?id=124284.
For those unable to participate in the live conference call, a
replay will be available until June 30,
2017. To access the replay, the U.S. dial in number is
1-844-512-2921 and the non-U.S. dial in number is 1-412-317-6671.
Callers will be prompted for replay conference ID number 3848253.
An archived version of the webcast will also be available on the
investor relations section of the company's website.
About Cyren:
Cyren (NASDAQ and TASE: CYRN) protects more than 600 million
users against cyber attacks and data breaches through its
cloud-based web security, email security, DNS security and cloud
sandboxing solutions. Relied upon by many of the world's largest
technology companies such as Dell, Google, McAfee and Microsoft,
Cyren offers enterprise-focused security-as-a-service solutions as
well as embedded solutions for software and security providers.
Cyren's global cloud security platform processes more than 17
billion daily transactions and uses innovative zero-day protection
technology to proactively block over 130 million threats each day.
Learn more at www.cyren.com. To test the effectiveness of your
current web security solution, go to
www.cyren.com/security-test.html.
Blog: http://blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc or
www.twitter.com/cyren_ir
Use of Non-GAAP Financial Measures:
Non-GAAP financial measures consist of GAAP financial
measures adjusted to exclude: stock-based compensation expenses,
amortization of acquired intangible assets, executive termination
costs, deferred taxes and deferred revenues related to
acquisitions, one-time settlement agreements, adjustments to
earn-out obligations and capitalization of technology. The purpose
of such adjustments is to give an indication of the company's
performance exclusive of non-cash charges and other items that are
considered by management to be outside of the company's core
operating results. The company's non-GAAP financial measures are
not meant to be considered in isolation or as a substitute for
comparable GAAP measures, and should be read only in conjunction
with the company's consolidated financial statements prepared in
accordance with GAAP.
Company management regularly uses supplemental non-GAAP
financial measures internally to understand, manage and evaluate
the business and make operating decisions.
These non-GAAP measures are among the primary factors
management uses in planning for and forecasting future periods. The
company believes this adjustment is useful to investors as a
measure of the ongoing performance of the business. The company
believes these non-GAAP financial measures provide consistent and
comparable measures to help investors understand the company's
current and future operating cash flow performance. These non-GAAP
financial measures may differ materially from the non-GAAP
financial measures used by other companies. Reconciliation between
results on a GAAP and non-GAAP basis is provided in a table
immediately following the Consolidated Statements of Income. The
presentation of this non-GAAP financial information is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
Management uses both GAAP and non-GAAP measures when evaluating the
business internally and therefore felt it important to make these
non-GAAP adjustments available to investors.
This press release contains forward-looking statements,
including projections about the company's business, within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. For example, statements
in the future tense, and statements including words such as
"expect," "plan," "estimate," "anticipate," or "believe" are
forward-looking statements. These statements are based on
information available at the time of the press release and the
company assumes no obligation to update any of them. The statements
in this press release are not guarantees of future performance and
actual results could differ materially from current expectations as
a result of numerous factors, including business conditions and
growth or deterioration in the internet security market,
technological developments, products offered by competitors,
availability of qualified staff, and technological difficulties and
resource constraints encountered in developing new products, as
well as those risks described in the company's Annual Reports on
Form 20-F and reports on Form 6-K, which are available through
www.sec.gov.
Company Contact
Mike Myshrall, CFO
Cyren
+1.703.760.3320
mike.myshrall@cyren.com
Israel Investor Contact
Iris Lubitch
SmarTeam
+972.54.2528007
iris@smartteam.co.il
Media Contact
Matthew Zintel
Zintel Public
Relations
+1.281.444.1590
matthew.zintel@zintelpr.com
CYREN
LTD.
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
(in thousands
of U.S. dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
March
31
|
|
2017
|
|
2016
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Revenues
|
$
7,959
|
|
$
7,411
|
|
|
|
|
Cost of
revenues
|
3,032
|
|
2,051
|
|
|
|
|
Gross
profit
|
4,927
|
|
5,360
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development, net
|
2,290
|
|
2,278
|
|
|
|
|
Sales and
marketing
|
3,573
|
|
2,743
|
|
|
|
|
General and
administrative
|
1,563
|
|
1,697
|
|
|
|
|
Total operating
expenses
|
7,426
|
|
6,718
|
|
|
|
|
Operating
loss
|
(2,499)
|
|
(1,358)
|
|
|
|
|
Other
income
|
1
|
|
7
|
|
|
|
|
Financial expense,
net
|
(75)
|
|
(93)
|
|
|
|
|
Loss before
taxes
|
(2,573)
|
|
(1,444)
|
|
|
|
|
Tax benefit
(expense)
|
55
|
|
(51)
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(2,518)
|
|
$
(1,495)
|
|
|
|
|
|
|
|
|
Loss per share -
basic
|
$
(0.06)
|
|
$
(0.04)
|
|
|
|
|
Loss per share -
diluted
|
$
(0.06)
|
|
$
(0.04)
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
Basic
|
39,179
|
|
39,121
|
|
|
|
|
Diluted
|
39,179
|
|
39,121
|
|
|
|
|
CYREN
LTD.
|
|
|
|
|
RECONCILIATION OF
SELECTED GAAP MEASURES TO NON-GAAP MEASURES
|
|
|
|
|
(in thousands
of U.S.dollars, except per share amounts)
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2017
|
|
2016
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
GAAP operating
loss
|
$
(2,499)
|
|
$
(1,358)
|
Stock-based
compensation (1)
|
280
|
|
247
|
Amortization of
intangible assets (2)
|
1,040
|
|
394
|
Adjustment to
deferred revenues (5)
|
-
|
|
42
|
Capitalization of
technology (6)
|
(1,126)
|
|
(947)
|
|
|
|
-
|
Non-GAAP operating
loss
|
$
(2,305)
|
|
$
(1,622)
|
|
|
|
|
GAAP net
loss
|
$
(2,518)
|
|
$
(1,495)
|
Stock-based
compensation (1)
|
280
|
|
247
|
Amortization of
intangible assets (2)
|
1,040
|
|
394
|
Adjustment to
earn-out liabilities and related expenses (3)
|
31
|
|
-
|
Amortization of
deferred tax assets (4)
|
(60)
|
|
(77)
|
Adjustment to
deferred revenues (5)
|
-
|
|
42
|
Capitalization of
technology (6)
|
(1,126)
|
|
(978)
|
|
|
|
|
Non-GAAP net
loss
|
$
(2,353)
|
|
$
(1,867)
|
|
|
|
|
GAAP loss per share
(diluted)
|
$
(0.06)
|
|
$
(0.04)
|
Stock-based
compensation (1)
|
0.00
|
|
0.01
|
Amortization of
intangible assets (2)
|
0.03
|
|
0.01
|
Adjustment to
earn-out liabilities and related expenses (3)
|
0.00
|
|
0.00
|
Amortization of
deferred tax assets (4)
|
(0.00)
|
|
(0.00)
|
Adjustment to
deferred revenues (5)
|
0.00
|
|
0.00
|
Capitalization of
technology (6)
|
(0.03)
|
|
(0.03)
|
|
|
|
|
Non-GAAP loss per
share (diluted)
|
$
(0.06)
|
|
$
(0.05)
|
|
|
|
|
Numbers of shares
used in computing non-GAAP loss per share (diluted)
|
39,179
|
|
39,121
|
|
|
|
|
(1) Stock-based
compensation
|
|
|
|
Cost of
revenues
|
$
33
|
|
$
12
|
Research and
development
|
82
|
|
83
|
Sales and
marketing
|
55
|
|
52
|
General and
administrative
|
110
|
|
100
|
|
|
|
|
|
$
280
|
|
$
247
|
(2) Amortization
of intangible assets
|
|
|
|
Cost of
revenues
|
$
874
|
|
$
206
|
Sales and
marketing
|
166
|
|
188
|
|
|
|
|
|
$
1,040
|
|
$
394
|
(3) Adjustment to
earn-out liabilities and related expenses
|
|
|
|
Financial expenses,
net
|
31
|
|
-
|
|
|
|
|
|
$
31
|
|
$
-
|
(4) Amortization
of deferred tax assets
|
|
|
|
Tax benefit
(expense)
|
$
(60)
|
|
$
(77)
|
|
|
|
|
|
$
(60)
|
|
$
(77)
|
(5) Adjustment to
deferred revenues
|
|
|
|
Revenues
|
$
-
|
|
$
42
|
|
|
|
|
|
$
-
|
|
$
42
|
(6) Capitalization
of technology
|
|
|
|
Research and
development
|
$
(1,126)
|
|
$
(947)
|
Financial expenses,
net
|
-
|
|
(31)
|
|
|
|
|
|
$
(1,126)
|
|
$
(978)
|
|
|
|
|
CYREN
LTD.
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
March
31
|
|
December
31
|
|
2017
|
|
2016
|
|
Unaudited
|
|
Audited
|
|
|
|
|
Assets
|
|
|
|
Current Assets:
|
|
|
|
Cash and cash
equivalents
|
$
13,538
|
|
$
10,621
|
Trade receivables,
net
|
3,024
|
|
3,061
|
Prepaid expenses and
other receivables
|
1,321
|
|
918
|
Total current
assets
|
17,883
|
|
14,600
|
|
|
|
|
Property and
equipment, net
|
2,185
|
|
2,081
|
Goodwill and
intangible assets, net
|
30,216
|
|
29,867
|
Severance pay
fund
|
564
|
|
604
|
Lease
deposits
|
402
|
|
380
|
Total long-term
assets
|
33,367
|
|
32,932
|
Total
assets
|
$
51,250
|
|
$
47,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
Current Liabilities:
|
|
|
|
Trade
payables
|
$
876
|
|
$
764
|
Employees and payroll
accruals
|
2,377
|
|
2,528
|
Accrued expenses and
other liabilities
|
692
|
|
755
|
Earn-out
consideration
|
3,122
|
|
3,041
|
Deferred
revenues
|
4,377
|
|
4,609
|
Total current
liabilities
|
11,444
|
|
11,697
|
|
|
|
|
Long term Convertible
Note
|
4,286
|
|
-
|
Embedded conversion
feature on Convertible Note
|
2,014
|
|
-
|
Deferred
revenues
|
1,531
|
|
1,788
|
Deferred tax
liability
|
1,343
|
|
1,374
|
Accrued severance
pay
|
806
|
|
816
|
Other
liabilities
|
121
|
|
119
|
Total long-term
liabilities
|
10,101
|
|
4,097
|
|
|
|
|
Shareholders'
equity
|
29,705
|
|
31,738
|
Total liabilities and
shareholders' equity
|
$
51,250
|
|
$
47,532
|
|
|
|
|
CYREN
LTD.
|
|
|
|
|
CONDENSED
CONSOLIDATED CASH FLOW DATA
|
|
|
|
|
(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
March
31
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
Unaudited
|
|
Unaudited
|
|
|
|
|
Net loss
|
$
(2,518)
|
|
$
(1,495)
|
|
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Loss on disposal of
property and equipment
|
-
|
|
2
|
Depreciation
|
275
|
|
323
|
Stock-based
compensation
|
280
|
|
247
|
Amortization of
intangible assets
|
1,040
|
|
394
|
Accrued interest,
accretion of discount and exchange rate differences on credit
line
|
-
|
|
(19)
|
Other expenses
related to the earn-out consideration
|
31
|
|
-
|
Deferred
taxes
|
(53)
|
|
(73)
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
Trade
receivables
|
25
|
|
129
|
Prepaid expenses and
other receivables
|
(396)
|
|
(192)
|
Change in long-term
lease deposits
|
(22)
|
|
(14)
|
Trade
payables
|
90
|
|
(209)
|
Employees and payroll
accruals, accrued expenses and other liabilities
|
(218)
|
|
(40)
|
Deferred
revenues
|
(489)
|
|
3,827
|
Accrued severance
pay, net
|
30
|
|
60
|
Other long-term
liabilities
|
-
|
|
(1)
|
Net cash provided
by (used in) operating activities
|
(1,925)
|
|
2,939
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Capitalization of
technology, net of grants received
|
(1,126)
|
|
(978)
|
Purchase of property
and equipment
|
(354)
|
|
(263)
|
Net cash used in
investing activities
|
(1,480)
|
|
(1,241)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
convertible note
|
6,300
|
|
-
|
Payment of credit
line
|
-
|
|
(4,150)
|
Proceeds from options
exercised
|
6
|
|
-
|
Net cash provided
by (used in) financing activities
|
6,306
|
|
(4,150)
|
Effect of exchange
rate changes on cash
|
16
|
|
99
|
Increase
(decrease) in cash and cash equivalents
|
2,917
|
|
(2,353)
|
Cash and cash
equivalents at the beginning of the period
|
10,621
|
|
16,379
|
Cash and cash
equivalents at the end of the period
|
$
13,538
|
|
$
14,026
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cyren-reports-first-quarter-2017-results-300457371.html
SOURCE Cyren