MISSISSAUGA, ON, Nov. 5 /CNW/ - Certicom Corp. (TSX: CIC) ("Certicom" or
the "Company") today announced that revenue for the second quarter of fiscal
2008, ended October 31, 2007, is expected to be lower than what management
believes are market expectations. Second quarter revenue is expected to be in
the range of US$3.1 million to $3.5 million.
"This quarter's revenue fell short of expectations due to a combination
of factors, including the complexity of the strategic deals we focus on and
our product development shift towards more complete security solutions in
response to changes in market demand. We may encounter revenue variability
over the next few quarters as we adapt to changing market dynamics, progress
through the Sony patent litigation case, and proceed with executing our growth
strategy," said Bernard Crotty, Certicom's President and Chief Executive
Mr. Crotty continued, "While we are disappointed with this quarter's
revenue, it is important to note that we have not lost any second quarter
prospective deals and our pipeline of opportunities remains robust.
Furthermore, our outlook remains bright based on several encouraging factors:
our growing portfolio of design wins provides a strong base for building
recurring revenue, the evidence of global adoption of Certicom's technology
continues to accumulate, and our product development strategy is making
The expected range for the Company's operating expenses in the second
quarter of fiscal 2008 is US$6.1 million to $6.5 million, consistent with the
expense guidance given last quarter.
The Company expects to make an announcement about Certicom's new Chief
Executive Officer by December 31, 2007.
Certicom's complete second quarter results will be released after market
close on December 4, 2007.
Management will host a conference call to discuss the pre-earnings
announcement at 11 a.m. ET (8 a.m. PT) on Tuesday, November 6, 2007.
Participants can access the call by dialing 416-644-3427 or 1-800-590-1508.
The live audio webcast can be accessed by visiting www.certicom.com. A
question and answer session for analysts and institutional investors will
follow the call. An archived recording of the call will be available from
12 p.m. (ET) on November 6 until 12 a.m. (ET) on November 13, 2007.
Participants can access the archive by dialing 416-640-1917 or 1-877-289-8525
and entering passcode 21252544 followed by the number sign. The archived
webcast can be accessed by visiting www.certicom.com.
Certicom protects the value of content, applications and devices with
government-approved security. Adopted by the National Security Agency (NSA)
for government communications, Elliptic Curve Cryptography (ECC) provides the
most security per bit of any known public-key scheme. As the global leader in
ECC, Certicom security offerings are currently licensed to more than 300
customers including General Dynamics, Motorola, Oracle, Research In Motion and
Unisys. Founded in 1985, Certicom's corporate offices are in Mississauga,
Ontario, Canada with worldwide sales and marketing headquarters in Reston,
Virginia and offices in the U.S., Canada, Europe and China. Visit
Certicom, Certicom Security Architecture, Certicom Trust Infrastructure,
Certicom CodeSign, Certicom KeyInject, Security Builder, Security Builder API,
Security Builder BSP, Security Builder Crypto, Security Builder ETS, Security
Builder GSE, Security Builder IPSec, Security Builder NSE, Security Builder
PKI and Security Builder SSL are trademarks or registered trademarks of
Certicom Corp. All other companies and products listed herein are trademarks
or registered trademarks of their respective holders. Information subject to
Except for historical information contained herein, this news release
contains forward-looking statements that involve risks and uncertainties.
Forward-looking information includes information concerning the Company's
future financial performance, business strategy, plans, goals and objectives.
When used in such documents, the words "plans", "expects", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", "will",
"believes" or variations of such words and phrases often, but not always,
identify forward looking statements. Factors which could cause actual results
or events to differ materially from current expectations include, among other
things: the ability of the Company to successfully implement its strategic
initiatives and whether such strategic initiatives will yield the expected
benefits; the ability of the Company to develop, promote and protect its
proprietary technology security breaches or defects in the Company's products;
competitive conditions in the businesses in which the Company participates;
changes in consumer spending; the outcome of legal proceedings as they arise;
general economic conditions and normal business uncertainty; consolidation in
the Company's industry and by its customers; customer preferences towards
product offerings; the risk that customers may cancel their contracts with the
Company; reliance on a limited number of customers; demand for ECC-based
technology; performance of the Company's management team and the Company's
ability to attract and retain skilled employees; operating the Company's
business profitably; fluctuations in revenue and foreign currency exchange
rates; interest rate fluctuations and other changes in borrowing costs; the
ability to develop and maintain strategic relationships; and other factors
identified under the heading "Risk Factors" in the Company's annual
information form dated July 26, 2007 and filed on SEDAR at www.sedar.com.
While the Company believes that its forecasts and assumptions are
reasonable, results or events predicted in this forward-looking information
may differ materially from actual results or events. In particular but without
limitation, there is no assurance that the Company will achieve all or a
portion of the goals outlined in its fiscal 2008 business plan within the time
limits specified therein or at all.
For further information:
For further information: Investors and Financial Analysts: Hervé Séguin,
Chief Financial Officer, Certicom Corp., (905) 501-3827, firstname.lastname@example.org;
Media: John Callahan, Director, Public Relations & Marketing Communications,
Certicom Corp., (703) 234-2357, email@example.com