Trend Micro Reports Third Quarter 2013 Results

PRESS RELEASE

TOKYO, Nov. 13, 2013 /PRNewswire/ -- Trend Micro Incorporated (TSE: 4704; TYO 4704), a global leader in security software and solutions, announced earnings results for the third quarter 2013, ending September 30, 2013.

For the third quarter, Trend Micro posted consolidated net sales of 27,069 million Yen (or US $273 million, 98.96 JPY = 1USD). The company posted operating income of 14,161 million Yen (or US $143 million) and net income of 5,363 million Yen (or US $54 million) for the quarter.

As of now, the company will not revise consolidated results for the full fiscal year ending December 31, 2013 (released on May 9, 2013). Based on information currently available to the company, consolidated net sales for the year ending December 31, 2013 is expected to be 107,200 million Yen (or US $1,105 million, based on the FY2013 annual assumed exchange rate of 97 JPY = 1USD). Operating income and net income are expected to be 26,400 million Yen (or US $272 million) and 17,100 million Yen (or US $176 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.

"During the third quarter, Trend Micro has significantly strengthened its collaborative relationships with key partners," said Eva Chen, CEO, Trend Micro. "These collaborations, along with our enhanced product and service offerings, continue to expand and fortify our ability to provide simple and effective security solutions for our customers."

Q3 2013 Business Highlights

Trend Micro opened its new Global Operations Headquarters in Irving/Las Colinas, Texas, near Dallas. The location houses business units including: threat research, finance, legal, customer support, commercial sales and marketing, and human resources.

The company's position as the number one provider of server security[1] was advanced with the announcement of its collaboration with VMware to integrate Trend Micro(TM) Deep Security with VMware NSX(TM), the platform for network virtualization. The collaboration creates a best-of-breed security framework for joint customers that increases protection and automates security deployment in virtualized data centers.

Trend Micro announced more than 20 leading cloud service providers, including Amazon Web Services, HP Cloud Services and Dell, have been certified in its "Trend Ready" initiative. The first-of-its-kind cloud security verification program validates a cloud infrastructure to support and operate Trend Micro's comprehensive Cloud and Data Center Security Solution. By participating in the program, cloud service providers confirm to their customers that their cloud infrastructures will work with Trend Micro security products.

Expanding its unique social network privacy technology, Trend Micro introduced a robust personal privacy management tool that dramatically simplifies privacy settings on Twitter, Google+ and Facebook - for both Mac and PC. The management tool, featured in Trend Micro(TM) Titanium(TM) 2014 family of consumer security products, identifies privacy settings that may leave personal or inappropriate information publicly available or vulnerable to identity theft.

Trend Micro announced channel program enhancements to streamline access to Trend Micro Cloud and Data Center Security. The program enhancements are designed to support channel partners' customer outreach and sales enablement, and include improvements to Deal Registration and Specialization Programs, as well as a new On-Demand Marketing platform.

The company announced a new global internship program that will offer students a behind-the-scenes look at Trend Micro's product development of security and privacy solutions, as well as the latest developments in cyber threats. The interns - known as "TrendTerns" - will also have the opportunity to earn academic scholarships and other performance incentives while gaining real-world experience.

Awards and Recognitions for Q3 2013

Trend Micro(TM) Enterprise Security for Endpoints scored a 5-star rating from SC Magazine.

Nikkei Communications' "Enterprise Internet/ICT Use and Application Factual Investigation 2013" found Trend Micro to have the highest rate of utilization among ATP solution vendors.

Patents

Trend Micro was awarded the following patents in Q3 2013:

Patent 8479294 Anti-malware scan management in high- availability virtualization environments

Patent 8484734 Application programming interface for antivirus applications

Patent 8484732 Protecting computers against virtual machine exploits

Patent 8490203 Fingerprinting based entity extraction

Patent 8495144 Techniques for identifying spam e-mail

Patent 8495733 Content fingerprinting technology by using context offset sequence and suffix automata

Patent 8495060 Prioritization of reports using content data change from baseline

Patent 8499170 SQL injection prevention

Patent 8499152 Data positioning and alerting system

Patent 8499349 Detection and restoration of files by malware

Patent 8498965 Methods and apparatus for generating difference files

Patent 8505092 Dynamic provisioning of protection software in a host intrusion prevention system

Patent 8505094 Detection of malicious URLs in a Web page

Patent 8505101 Thin client for computer security applications

Patent 8510838 Malware protection using file input/output virtualization

Patent 8510835 Techniques for protecting data in cloud computing environments

Patent 8510791 Method and system for dynamic protocol decoding and analysis

Patent 8516592 Wireless hotspot with lightweight anti-malware

Patent 8516586 Classification of unknown computer network traffic

Patent 8516582 Method and system using designated template hosts for real time classification of events in a computer integrity system

Patent 8520848 Secure password management using keyboard layout

Patent 8527631 Web site reputation service using proxy auto- configuration

Notice Regarding Forward-Looking Statements

Certain statements that are made in this release are forward-looking statements. These forward-looking statements are based on 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 actual results to differ materially from those expressed in 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 new products -- The level of continuing demand for, and timing of sales of, existing products -- Rapid technological change within the antivirus software industry -- Changes in customer needs for antivirus software -- Existing products and new product introductions by competitors and 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 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, a global leader in security software, strives to make the world safe for exchanging digital information. Our solutions for consumers, businesses and governments provide layered data security to protect information on mobile devices, endpoints, gateways, servers and the cloud. Trend Micro enables the smart protection of information, with innovative security technology that is simple to deploy and manage, and fits an evolving ecosystem. All of our solutions are powered by cloud-based global threat intelligence, the Trend Micro (TM) Smart Protection Network(TM) infrastructure, and are supported by over 1,200 threat experts around the globe. For more information, visit TrendMicro.com.