Revenues for the three-month period were $3.5 million, compared to $6.5 million for the same period in 2000. Pro forma net loss for the three-month period which excludes the effect of additional reserves for excess inventory and development cost write-offs in the second quarter of 2001 was $(896,000) or $(0.13) per share, assuming the recognition of a tax benefit on pre-tax losses, compared to a net income of $546,000, or $0.08 per diluted share assuming the recognition of tax expense on pre-tax earnings in 2000.
During the second quarter, the company recorded special charges aggregating $1.4 million or $(0.20) per share related to reserves for excess inventory and capitalized development costs. All charges, with the exception of $116,000 are noncash charges.
The reported net loss for the second quarter of 2001 was $(2,775,000) or $(0.39) per share, compared with actual net income of $841,000 or $0.12 per diluted share for the same period last year.
Revenues for the six months ended June 30, 2001 were $9.5 million compared to $12.3 million for the six months ended June 30, 2000. Pro forma net loss for the six-month period which excludes the effect of inventory reserves and development cost write-offs in the second quarter of 2001 for the six month period ended June 30, 2001 was $(616,000) or $(0.09) per share, assuming the recognition of a tax benefit on pre-tax losses, compared to net income for the six months ended June 30, 2000 of $783,000 or $0.11 per diluted share assuming the recognition of tax expense on pre-tax earnings.
The reported net loss for the first six months of 2001 was $(2,344,000) or $(0.33) per share, compared with actual net income of $1,198,000 or $0.17 per diluted share for the first six months of fiscal 2000.
During the quarter, we saw continued pressure on capital spending, and expect to see only gradual improvements in the second half of the year. We’ve taken the necessary steps to reduce expenses and made the appropriate charges based on current expectations, commented Anthony Caputo, SafeNet’s Chairman and CEO. We are continuing to implement new development and marketing programs aimed at expanding our revenue base beyond the networking industry.
During the quarter, SafeNet signed an additional significant license of SecureIP Technology with another large semiconductor company. SecureIP Technology provides OEM customers the building blocks for security implementations. The revenue stream from SecureIP licenses includes an upfront license fee and recurring revenue through royalty payments and annual maintenance fees.
Our End User VPN business performed well during the quarter with continued interest from several government and financial institutions. Several organizations placed large orders for SafeNet products including Lockheed Martin, Social Security Administration, and Citicorp.
SOURCE: COMPANY PRESS RELEASE
