Absolute Software Announces Intent to Divest Absolute Manage and Absolute Service
Jul 16, 2015, 07:00 ET
Company provides update on fiscal 2015 results
VANCOUVER, July 16, 2015 /CNW/ - Absolute® Software Corporation (TSX: ABT) the industry standard for persistent endpoint security and data risk management solutions for computers, laptops, tablets and smartphones, today announced its intention to divest Absolute Manage® and Absolute Service, its enterprise mobility management and IT service management products.
"The Absolute management team and its Board of Directors are unified in our belief that this planned divestiture will strengthen Absolute," said Geoff Haydon, Absolute's chief executive officer. "The divestiture will enable us to focus on our core information security business, which constitutes more than 95 percent of our customers. It will also favorably position us to expand and strengthen our market leadership in this important segment."
Plans to divest Absolute Manage and Absolute Service are consistent with the Company's stated strategy to place a stronger emphasis on Absolute's adaptive endpoint security solutions. With the ability to focus management and financial resources on this product line, Absolute will be in a position to accelerate its technology roadmap, extend its unique persistence platform, and deliver additional value to its customers.
Absolute Manage and Absolute Service represented approximately 11% of Absolute's total Sales Contracts in the nine months ended March 31, 2015, and these product lines are estimated to be approximately break-even after direct expenses and the application of indirect expenses and overheads.
Absolute intends to operate Absolute Manage and Absolute Service as a separate business unit. Absolute remains committed to supporting these products and providing its customers with continued best-in-class support and service.
Absolute is also providing an update on its expected fiscal 2015 performance. For the fiscal year ended June 30, 2015 Absolute expects Sales Contracts of $101.1 - $101.5 million, revenue of $93.4 - $93.8 million and cash from operating activities of $22.9 - $23.3 million. Sales Contracts are expected to grow year-over-year in line with the Company's outlook. Absolute's fourth quarter results are expected to reflect a slight year-over-year decline in Sales Contracts as the Company continued to progress initiatives around refining its technology, geographic and vertical market focus, and restructuring its sales organization to maximize new and existing customer opportunities. Management remains confident this focused strategy will drive long-term growth in the information security market, and believes the Company has a unique opportunity to leverage its proven persistence platform to drive significant customer and shareholder value.
All dollar figures are unaudited and stated in U.S. dollars, unless otherwise indicated.
About Absolute Software
Absolute Software Corporation (TSX: ABT) is the industry standard in persistent endpoint security and data risk management solutions for computers, laptops, tablets and smartphones. Persistence® technology from Absolute provides organizations with visibility and control over all of their devices, regardless of user or location. If an Absolute software client is removed from an endpoint, it will automatically reinstall so IT can secure each device and the sensitive data it contains. No other technology can do this. Persistence technology is embedded in the firmware of computers, netbooks, tablets and smartphones by global leaders, including Acer, ASUS, Dell, Fujitsu, HP, Lenovo, Microsoft, Motion, Panasonic, Samsung, and Toshiba, and the Company has reselling partnerships with these OEMs and others, including Apple. For more information about Absolute Software, visit www.absolute.com.
This press release contains forward-looking statements and financial outlook that involve risks and uncertainties. These forward-looking statements and financial outlook relate to, among other things, the expected performance, functionality and availability of our services and products, and other expectations, intentions and plans contained in this press release that are not historical facts. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and general market conditions. In light of the many risks and uncertainties you should understand that we cannot assure you that the forward-looking statements and financial outlook contained in this press release will be realized. Furthermore, the forward-looking statements and financial outlook contained in this press release are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
©2015 Absolute Software Corporation. All rights reserved. Computrace and Absolute are registered trademarks of Absolute Software Corporation. For patent information, visit www.absolute.com/patents. The Toronto Stock Exchange has neither approved nor disapproved of the information contained in this news release.
SOURCE Absolute Software Corporation
For further information: Public Relations: Becky Obbema, Interprose, [email protected] or 1 408 778 2024; or Toru Levinson, Absolute Software, [email protected] or 1 604 730 9851 x208; Investor Relations: Kristen Dickson, TMX|Equicom, [email protected] or 1 416 815 0700 x273
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