Secure Computing reports record billings, revenues and cash from operations

This represents a 29% increase in revenue compared to $51.6m in the same quarter last year. Fourth quarter non-GAAP revenue was a record $69.9m, representing an 11 per cent increase compared to the same quarter last year.

On a GAAP basis, net loss was $3.5m or $0.07 per share. Fourth quarter non-GAAP net income was $7.2m or $0.10 per fully-diluted share. The company also generated a record $15.7m of cash from operations and reduced the long term debt balance by $12.0m. Billings for the quarter were a record $82.2m, a 6% increase compared to the same quarter last year.

Nimer Ghazal, Regional Sales Manager, Secure Computing, said,

"Secure Computing delivered a record quarter, based on good execution across the company. Our momentum is clearly building - the threat environment on the Internet is only increasing, especially in growth areas such as the Middle East whose internet use has increased by a phenomenal 920% from 2000 to 2007. As our comprehensive product portfolio uniquely protects individuals and companies from online threats, we are optimistic about the outlook for the company and expect to deliver consistent growth and profitability going forward."

GAAP gross profit in the fourth quarter was 70 per cent of revenue or $46.6m. Non-GAAP gross profit in the fourth quarter was 73 per cent of revenue or $51.1m. These non-GAAP results compare to 75 per cent of non-GAAP revenue, or $47.2m, in the year ago quarter and 77% of non-GAAP revenue, or $50.0m, in the prior quarter.

Fourth quarter GAAP operating expenses were $50.2m, or 76% of revenue. Non-GAAP operating expenses for the quarter were $42.6m or 61 per cent of non-GAAP revenue. These non-GAAP results compare to 61% of non-GAAP revenue in the year ago quarter and 63% in the prior quarter.

GAAP operating loss for the fourth quarter was $3.6m. Fourth quarter non-GAAP operating income was $8.5m or 12% of non-GAAP revenue, compared to 14% in the same quarter last year and 13% in the prior quarter.

In the fourth quarter, deferred revenue increased $14.4m, or 9%, bringing the total deferred revenue balance to a record $168.2m at the end of December.

Total cash and restricted cash was $12.6m at December 31, 2007. Cash generated from operations in the quarter was a record $15.7m.

"In today's market, we view billings and cash generated from operations as two key metrics," said Tim Steinkopf, Senior Vice President of Operations and Chief Financial Officer. "Specific to these metrics, our financial results for the fourth quarter produced record billings, up 11 per cent sequentially, and record cash generated from operations. For the full year 2007, we generated $0.72 per fully diluted share in cash from operations."