NCipher plc (LSE:NCH), a global leader in protecting critical enterprise data, announces its financial results for the three months and full year to 31 December 2005.
Financial Highlights
Financial summary (US GAAP) for the twelve months ended 31 December 2005
- Revenue up 22% to £17.4 million (2004: £14.2 million)
- Operating profit increased to £2.0 million (2004: £0.4 million)
- Net profit after taxation increased to £3.1 million (2004: £2.2 million)
- Strong closing cash balance of £40.6 million (2004: £42.3 million)
Financial summary (US GAAP) for the quarter ended 31 December 2005
- Revenue up 21% to £5.2 million (Q3 2005: £4.3 million)
- Operating profit increased to £0.8 million (Q3 2005: £0.5 million profit)
- Net cash outflow of £3.7 million (Q3 2005: inflow £1.2 million) after acquisition of majority stake in Abridean (US) Inc.
Operational Highlights
- nCipher acquires a majority stake in Abridean (US) Inc. to enter identity management market
- nCipher launches keyAuthority enterprise key management solution
Financial summary (IFRS) for the twelve months ended 31 December 2005
- Profit from operations £1.9m (2004: £0.6m)
- Net profit for the period £3.0m (2004: £2.4m)
- EPS 10.97 pence (2004: 8.91 pence)
Commenting on the results Alex van Someren, Chief Executive Officer, said: "In 2005 we once again achieved sequential growth in sales revenues in all four quarters. Furthermore, our operating profits grew significantly and we made our first acquisition, a majority stake in Abridean (US) Inc., as the year drew to a close."
2005 was a year of strong growth for nCipher and we believe that the combination of market conditions and our growing portfolio of products and services put us in an excellent position to exploit further opportunities for growth during 2006."
Subsequent development
Recommended cash Offer at 300p per Ordinary share received from SafeNet, Inc. announced on 8 February 2006.
Commenting on the Offer from SafeNet, Inc. Alex van Someren added: "nCipher has built a strong business both organically and through strategic acquisition. This proposed merger with SafeNet will accelerate our growth as we leverage SafeNet's distribution channels, global footprint and comprehensive product portfolio. We believe that this merger will create a strong and successful presence in the IT security industry and is in the best interests of our shareholders, customers and employees. Accordingly, the Board is pleased to recommend this offer which recognises the premium value of nCipher."
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