CyberGuard announces results of first quarter of fiscal year 2006

This represents an increase of US$ 1.8 million, or 11.2 per cent, over revenues of US$ 15.6 million for the quarter ended September 30, 2004, and is the thirteenth consecutive quarter of sequential revenue growth for the company.

On a GAAP basis the company reported net income of US$ 341,000 for the first quarter of fiscal year 2006 or US$ 0.01 earnings per diluted share to common stock shareholders. That compares to net loss of US$ 59,000 for the same quarter a year earlier or US$ 0.00 earnings per diluted share.

On a non-GAAP or pro forma basis (exclusive of acquisition-related costs and option expense) net income for the first quarter of fiscal year 2006 was US$ 2.5 million compared to US$ 1.0 million for the first quarter of the fiscal year ending September 30, 2004. On a pro forma basis, the net income to common stock shareholders for the first quarter of fiscal year 2006 was US$ 0.08 per diluted share compared to US$ 0.03 per diluted share for the quarter ending September 30, 2004.

"By any measure, the first quarter of FY '06 was an outstanding quarter for CyberGuard,"

said Sami Mulla, Vice President, Middle East & North Africa, CyberGuard. "Revenues were at record levels, and, through a combination of improved operating efficiencies and our ability to fully leverage previous acquisitions, we were able to post exceptionally strong results."

"CyberGuard's impressive performance in the Middle East markets has also contributed to the overall profits of the company. We have consolidated our position in the Middle East by working closely with our partners and effectively tapping the security solutions market," added Mulla.

Mulla added that CyberGuard's services revenue doubled from last year's levels and that the company has also seen a 100 per cent increase in its SG Appliance revenue from Q4 '05 levels.