ActivIdentity cuts Q3 losses

Source: ActivIdentity

ActivIdentity Corporation (NASDAQ:ACTI), a global leader in digital identity assurance, today announced its financial results for the third quarter ended June 30, 2007.

Revenues for the quarter ended June 30, 2007 were $16.3 million, compared to $12.9 million for the quarter ended June 30, 2006 and $14.9 million for the quarter ended March 31, 2007, representing year-over year revenue growth of 26% and a sequential quarterly growth of 9%.

Net loss for the quarter ended June 30, 2007 was $2.7 million, or a loss of $0.06 per diluted share, including charges taken for an accrual of approximately $900K related to a final settlement with the former stockholders of Protocom Development Systems Pty. Ltd. (Protocom), compared to a net loss of $5.3 million, or a loss of $0.12 per diluted share for the three months ended June 30, 2006. Net loss for the quarter ended March 31, 2007 was $3.4 million or a loss of $0.08 per diluted share.

Third Quarter Financial Highlights:
  • Gross profit was $10.3 million compared to $7.1 million for the same quarter of 2006.
  • Net loss decreased to $2.7 million compared to a loss of $5.3 million reported for the same quarter of 2006.
  • The company settled its dispute with the former stockholders of Protocom, pursuant to which ActivIdentity will pay certain former Protocom stockholders approximately $900K along with a mutual release of all claims relating to the transaction.
  • Cash and cash equivalents (including short-term investments) were $129.8 million at June 30, 2007.


"We continue to work diligently to increase revenue and Q307 revenue was above our previously stated guidance reflecting sequential as well as annual growth. During the quarter, we expanded our existing relationships with HP and EDS which contributed to our revenue upside and expanded our customer base. Further, we increased our market penetration in the Government Smart Employee segment with additional wins in the United States and the United Kingdom. We continue to see positive market trends and the uptake of our Smart Employee Identification solutions," said Jason Hart, ActivIdentity's CEO.

Third Quarter Business Highlights
  • ActivIdentity strengthened its relationship with HP, its OEM partner in the United States, as the company's Smart Employee ID offerings continue to be embedded into various applications in the enterprise.
  • The company successfully secured sales to large non-US police organizations and various non-US government defense organizations.


Fourth Quarter Business Outlook

ActivIdentity anticipates that revenues for its fourth quarter of fiscal 2007 ending September 30, 2007 will range from $17.0 to $18.5 million, with a loss of between $0.01 and $0.04 per basic and diluted share. Cash, including short term investments, is expected to decrease to between $126 million and $128 million.

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