Entrust Q4 Revenue of $26.7 Million Returns Company to Profitability



    DALLAS, Jan. 7 /CNW/ -- Entrust, Inc. (Nasdaq:   ENTU), a world leader in
securing digital identities and information, today announced preliminary
financial results for its fiscal quarter and fiscal year that ended December
31, 2007 that are in line with guidance.
    Revenue for the fourth quarter increased to approximately $26.7 million.
Revenue in the fourth quarter was driven by increased product revenue, which
accounted for approximately 38% ($10.2 million) of total revenue in the
quarter.  Services accounted for approximately 62% ($16.5 million) of total
revenue in the quarter, which is the highest in three years.  Record support
and maintenance revenue was the main driver.  Total revenue for the full year
ending December 31, 2007 is expected to be approximately $99.7 million, an
increase of approximately 5% from 2006.
    Entrust expects to record a Q4, 2007 net income, calculated in accordance
with GAAP, of approximately  $0.02 per share, compared to Q4, 2006 net loss of
$0.03 per share. For the full year ended December 31, 2007, Entrust expects to
record a net loss, calculated in accordance with GAAP, of approximately $0.10
per share, compared to 2006 net loss of $0.26 per share.
    Entrust expects to record a Q4, 2007 non-GAAP income of approximately
$0.04 per share, compared to Q4, 2006 non-GAAP income of $0.00 per share.  For
the full year ended December 31, 2007, the company expects to record non-GAAP
income of approximately $0.00 per share or breakeven, compared to 2006 non-
GAAP loss of $0.08 per share.  The non-GAAP figures exclude amortization of
purchased intangibles and stock-option based compensation expense. See the
financial table below reconciling these non-GAAP figures to GAAP.
    "We are extremely pleased with our financial performance for the fourth
quarter and the year," said Bill Conner, Entrust chairman, president and chief
executive officer.  "In 2007, we achieved record customer transactions and new
customers, gained momentum in our target markets of strong authentication and
information protection, dramatically grew our PKI business, solidified our
position as the leader in global governments, and we returned the company to
full year non-GAAP profitability."
    Deferred revenue increased in the quarter to approximately $27.8 million,
an increase of approximately $4.2 million, from $23.6 million at year-end
2006.  Entrust ended the quarter with cash and marketable securities of over
$20.0 million and no debt.
    Conner added, "As we enter 2008, we are well positioned to grow our
products and services businesses, increase our profitability and deliver
shareholder value."
    The following charges for the fourth quarter and full year of 2007,
reconcile the GAAP and non-GAAP earnings per share:

    
    -- Stock-based compensation charge in accordance with SFAS 123R of
       approximately $600 thousand, or $(0.01) per share for the fourth
       quarter of 2007 and approximately $3.8 million, or $(0.06) per share
       for the full year of 2007.
    -- Amortization charges of intangible assets primarily associated with the
       acquisition of Business Signatures, Orion and AmikaNow of approximately
       $600 thousand, or $(0.01) per share for the fourth quarter of 2007 and
       approximately $2.4 million, or $(0.04) per share for the full year of
       2007.
    
    Entrust will announce its full fourth quarter and full-year 2007 results
before the open of the NASDAQ market on Tuesday, January 29, 2008.  The
Company also will host a conference call Tuesday, January 29, 2008, at 8:30
a.m. EST to further discuss the fourth quarter and full year 2007 results.
    Entrust will host a live teleconference and Webcast on Tuesday, January
29, 2008 at 8:30 a.m. EST, featuring Chairman, President and CEO Bill Conner
and Chief Financial Officer David Wagner to discuss the company's fiscal
fourth quarter and fiscal year-end 2007 results. The conference call audio
will be available live via dial-in at 1-800-732-9307 and via the Internet at
http://phx.corporate-ir.net/playerlink.zhtml?c=73119&s=wm&e=1735442.  Please
log on approximately 15 minutes before the Webcast begins in order to register
and to download and install any necessary audio software. An archive of the
Webcast will be available for 90 days at the above Internet address.
    For those unable to attend the live conference call, an audio replay will
be available beginning at 10:30 a.m. EST, Tuesday, January 29, 2008 through
Tuesday, February 5, 2008 at 11:59 p.m. EST.  The North American replay number
is 1-877-289-8525 and the International replay number is 416-640-1917. Both
numbers have a pass code of 21258622#.
    
    Use of Non-GAAP Financial Measures
    
    To supplement the financial results that are prepared and presented in
accordance with accounting principles generally accepted in the United States,
Entrust's management prepares and uses non-GAAP financial measures for many of
its internal financial, operating and planning reports. The company's
management believes that by excluding charges such as the purchased
intangibles amortization in cost of goods sold, the amortization of purchased
intangible assets in operating expenses, stock compensation expense,
restructuring charges and write down of strategic investments from its
GAAP-based results, these non-GAAP financial measures are more likely to
facilitate investors' understanding of the company's ongoing business
operating results. These non-GAAP financial measures also facilitate
comparisons to the operating results of the company's competitors and provide
investors with greater transparency with respect to the supplemental
information used by management in its operational and financial decision
making.
    The non-GAAP measures are included to provide investors with supplemental
information to facilitate their understanding of Entrust's operating results
and future prospects. Management uses these non-GAAP measures to assess its
success in reducing the company's cost structure, to measure its ongoing cash
operating costs, and to establish budgets and operational goals. The
presentation of this additional information should not be considered in
isolation or as a substitute for financial and operating results prepared in
accordance with accounting principles generally accepted in the United States,
as non-GAAP measures are susceptible to varying calculations and they may not
be comparable, as presented, to other similarly titled measures of other
companies.
    This press release contains forward-looking statements relating to
Entrust's projected revenue, net income and net loss per share and non-GAAP
income per share for the fourth quarter and full year 2007.  Such statements
are based upon preliminary estimates which involve a number of risks and
uncertainties. Among the important factors that could cause actual results to
differ materially from those indicated by such forward-looking statements are
unforeseen operating expenses ,inaccuracy in preliminary estimates issues
associated with revenue recognition, issues raised in connection with the
review of quarterly financial results, and the risk factors detailed from time
to time in Entrust's periodic reports and registration statements filed with
the Securities and Exchange Commission, including without limitation Entrust's
Annual Report on Form 10-K for the fiscal year ended December 31, 2006. While
Entrust may elect to update forward-looking statements in the future, Entrust
specifically disclaims any obligation to do so, even if its estimates change.
    
    About Entrust
    
    Entrust, Inc. [NASDAQ:   ENTU] is a world leader in securing digital
identities and information. Over 1,650 enterprises and government agencies in
more than 50 countries use Entrust solutions to help secure the digital lives
of their citizens, customers, employees and partners. Our proven software and
services can help customers in achieving regulatory and corporate compliance,
while helping to turn security challenges such as identity theft and email
security into business opportunities. For more information on how Entrust can
help secure your digital life, please visit: http://www.entrust.com


    Entrust is a registered trademark of Entrust, Inc. in the United States
and certain other countries.  In Canada, Entrust is a registered trademark of
Entrust Limited.  All Entrust product names are trademarks of Entrust.  All
other company and product names are trademarks or registered trademarks of
their respective owners.



    
                             Preliminary Results
                              Earnings Per Share
    

    
                                         Fourth Quarter       Full Year
                                               2007              2007
    U.S. GAAP measure                         $0.02             ($0.10)
    

    
    Adjustments to exclude the effects of
     amortization of purchased intangible
     assets                                   $0.01              $0.04
    

    
    Adjustments to exclude the
     effects of expenses related to stock-
     based compensation                       $0.01              $0.06
    

    Non-GAAP figures                          $0.04              $0.00




For further information:

For further information: Investor Relations, David Rockvam, 
+1-972-713-5824, david.rockvam@entrust.com, or Media Relations, Michelle 
Metzger, +1-972-713-5866, michelle.metzger@entrust.com, both of Entrust,  Inc.
Web Site: http://www.entrust.com

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