Trend Micro Reports Second Quarter Results

PRESS RELEASE

TOKYO, Aug. 9, 2012 /PRNewswire/ -- Trend Micro Incorporated (TSE: 4704; TYO 4704), the global cloud security leader, announced earnings results for the second quarter 2012, ending June 30, 2012.

For the second quarter, Trend Micro posted consolidated net sales of 23,058 million Yen (or US $287 million, 80.10JPY = 1USD). The company posted operating income of 4,934 million Yen (or US $61 million) and net income of 3,285 million Yen (or US $41 million) for the quarter.

"To fully deliver on our customer promise of 'Securing Your Journey to the Cloud' we need to ensure that all Trend Micro products and services provide the best security across physical, virtual, and cloud environments and different usage models," said Eva Chen, CEO. "At our core, Trend Micro offers services, software, appliances, and SaaS designed to solve our customer's security problems."

Based on information currently available to the company, consolidated net sales for the third quarter ending September 30, 2012 is expected to be 23,700million Yen (or US $303 million, based on an exchange rate of 78 JPY = 1USD). Operating income and net income are expected to be 5,700 million Yen (or US $73 million) and 4,000 million Yen (or US $51 million), respectively.

Growth rate figures are calculated from Japanese Yen results. Some discrepancy may therefore be noted in US Dollar comparisons owing to fluctuations in currency conversion rates.

Q2 2012 Business Highlights

Trend Micro announced it is now part of the VCE independent software vendors (ISV) program and that Trend Micro Deep Security has been certified on the VCE (TM) Vblock(TM) infrastructure platform.

Trend Micro joined the NCSA Board of Directors with Tom Kellermann, U.S. vice president of cybersecurity, serving as the company's representative.

A strategic partnership between Trend Micro and Facebook was announced to help educate and protect users' digital life against malicious sites and malware. Facebook will support integration of the Trend Micro(TM) Smart Protection Network(TM) infrastructure, which uses cloud technology, threat correlation, and a global network of threat intelligence sensors to proactively stop malware and web threats before they reach the computer.

Trend Micro announced integration of data-loss prevention across the enterprise in conjunction with the new Trend Micro Control Manager release for delivering innovative central management.

Awards and Recognition for Q2 2012

Corporate

Trend Micro was named the major player leading the fast-growing Global Cloud Security Software market, according to TechNavio's Global Cloud Security Software Market report.

Trend Micro holds the largest share in the global virtualization security management solutions market, according to The Global Virtualization Security Management Solutions Market 2011-2015, published by independent market research company TechNavio.

Products and Innovation

SC Magazine named Trend Micro as the company with the best secure virtualization solution, Trend Micro Deep Security. The announcement was made on the 24th April at the annual SC Magazine Europe Awards, held in conjunction with the Infosecurity Europe conference in London.

Trend Micro received "Best Privacy technology Award" for Deep Security from www.patientprivacyrights.com.

Info-Tech recognized Trend Micro as a Champion in the DLP market noting that Trend Micro has the best value and flexible deployment options.

Trend Micro Mobile Security won the mobile security software category for 'next-generation network products and services' of "the 2012 MM Research Institute Awards" given out by MM Research Institute Ltd., a research organization in Japan.

Patents

Trend Micro was awarded the following patents in Q2 2012:

8156234 Multicast Distribution of Computer Virus Pattern Files with Fail Over Mechanism

8161552 White List Creation in Behavior Monitoring System

8171552 Simultaneous Execution of Multiple Anti-Virus Programs

8171467 Updating of Malicious Code Patterns Using Public DNS Servers

8171002 Matching Engine with Signature Generation

8171547 Method and System Using Designated Template Hosts For Real Time Classification of Events in a Computer Integrity System

8171002 Matching Engine with Signature Generation

8171467 Updating of Malicious Code Patterns Using Public DNS Servers

8175387 Image Similarity Detection by Approximate Pattern Matching

8180917 Packet Threshold-Mix Batching Dispatcher to Counter Traffic Analysis

8191143 Anti-pharming in wireless network at pre-IP state

8195816 Computer system protect user against Phishing and Pharming Scam

8195953 Computer Program with Built-In Malware Protection

8201246 Preventing Malicious Codes from Performing Malicious Actions in a Computer System

8201247 Method and Apparatus for Providing Computer Security Service via Instant Messaging

8205258 Web threat infection chain detection

Notice Regarding Forward-looking Statements

Certain statements that we make in this release are forward-looking statements. These forward-looking statements are based upon management's current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and uncertainties. Many important factors could cause our actual results to differ materially from those expressed in our forward-looking statements. These factors include:

-- Difficulties in addressing new virus and other computer security problems -- Timing of new product introductions and lack of market acceptance for our new products -- The level of continuing demand for, and timing of sales of, our existing products -- Rapid technological change within the antivirus software industry -- Changes in customer needs for antivirus software -- Existing products and new product introductions by our competitors and the pricing of those products -- Declining prices for products and services -- The effect of future acquisitions on our financial condition and results of operations -- The effect of adverse economic trends on our principal markets -- The effect of foreign exchange fluctuations on our results of operations -- An increase in the incidence of product returns -- The potential lack of attractive investment targets and -- Difficulties in successfully executing our investment strategy About Trend Micro:

Trend Micro Incorporated (TYO: 4704;TSE: 4704), the global cloud security leader, creates a world safe for exchanging digital information with its Internet content security and threat management solutions for businesses and consumers. A pioneer in server security with over 20 years' experience, we deliver top-ranked client, server and cloud-based security that fits our customers' and partners' needs, stops new threats faster, and protects data in physical, virtualized and cloud environments. Powered by the industry-leading Trend Micro Smart Protection Network cloud computing security infrastructure, our products and services stop threats where they emerge - from the Internet. They are supported by 1,000+ threat intelligence experts around the globe.