Attached files
| file | filename |
|---|---|
| EX-3.1 - AMENDED AND RESTATED CERTIFICATE OF INCORPORATION - AUTHENTEC INC | ex3-1.htm |
| 8-K - CURRENT REPORT - AUTHENTEC INC | authentec_8k-021810.htm |
Exhibit
99.1
Press Release
AuthenTec
Reports Fourth Quarter
2009
Financial Results
MELBOURNE, Fla., February 18,
2010 -- AuthenTec (NASDAQ:AUTH), the world’s leading provider of smart
fingerprint sensors and solutions, today reported financial results for the
fourth quarter and full fiscal year 2009 ended January 1, 2010.
Financial
and Business Highlights:
|
·
|
Fourth
quarter revenue of $8.3 million, in line with previously increased
guidance
|
|
·
|
GAAP
net loss of $3.0 million, or $0.10 per diluted
share
|
|
·
|
Non-GAAP
net loss of $1.7 million, or $0.06 per diluted
share
|
|
·
|
Announced
launch of the LG eXpo from AT&T, first fingerprint-enabled U.S.
smartphone
|
|
·
|
Expanded
smart sensor offering with two new products for the PC and mobile
markets
|
|
·
|
Elected
investor and banking veteran, Bob Grady, as Chairman of the
Board
|
Revenue
for the fourth quarter of 2009 was $8.3 million, exceeding AuthenTec’s initial
guidance of $7.5 million to $8.0 million and in line with the revised guidance
of $8.2 million to $8.4 million provided by the Company on December 21,
2009. The better-than-expected fourth quarter revenue was due
primarily to strong demand for PC products across many of its OEM customers.
Revenue declined as compared to $10.3 million reported in the third quarter of
2009 and $11.6 million in the fourth quarter of 2008 due to the anticipated
reductions related to transitions of certain OEM notebooks and, consistent with
the prior years, a cell phone product transition at a key account.
GAAP
Results:
Under
Generally Accepted Accounting Principles (GAAP), net loss for the fourth quarter
of 2009 was $3.0 million, or $0.10 per diluted share. This compares
to a GAAP net loss of $4.2 million, or $0.14 per diluted share, in the third
quarter of 2009 and a GAAP net loss of $1.3 million, or $0.05 per diluted share
in the fourth quarter of 2008.
GAAP
gross margin in the fourth quarter improved slightly to 45.5 percent, compared
to 45.3 percent in the third quarter of 2009 and 45.5 percent in the year-ago
period.
Total
operating expenses on a GAAP basis were $6.8 million, compared to $8.9 million
in the third quarter of 2009 and $6.8 million in the fourth quarter of
2008. A reconciliation of GAAP to non-GAAP results is provided in
Table 2 following the text of this press release.
Non-GAAP
Results:
On a
non-GAAP basis, net loss for the fourth quarter of 2009 was $1.7 million, or
$0.06 per diluted share, surpassing the prior guidance projecting a loss between
$.07 and $.08 per share. The non-GAAP results excluded expenses
primarily related to M&A activity and stock-based
compensation. This compares to a non-GAAP net loss of $1.5 million,
or $0.05 per diluted share, in the third quarter of 2009 and a non-GAAP loss of
$493,000, or $0.02 per diluted share, in the fourth quarter of
2008.
Non-GAAP
gross margin in the fourth quarter was 46.2 percent, compared to 46.0 percent in
the third quarter of 2009 and 45.8 percent in the fourth quarter of
2008. The increase in gross margin was due primarily to lower
inventory provisions during the quarter, as well as the continued focus by the
company on reducing new product costs.
Total
operating expenses on a non-GAAP basis declined to $5.6 million, compared to
$6.3 million in the third quarter of 2009 and $6.2 million in the fourth quarter
of 2008. The decrease in operating expenses compared to the third
quarter of 2009 was primarily due to continued cost reduction actions including
lower personnel-related and outside service expenses. Operating
expenses have been reduced by more than 30 percent since reaching a peak in the
second quarter of 2008.
AuthenTec
ended the fourth quarter of 2009 with approximately $55.6 million in cash and
investments. This compares to $57.4 million in cash and investments
at the end of the third quarter of 2009.
Business
Update:
“While we
are pleased to have exceeded our initial revenue and earnings guidance, our
focus remains on expanding the available market for our sensors and broadening
our customer base in order to increase total revenue and accelerate our return
to profitability. We are making excellent progress on our new product
roadmap, evidence of our success in transitioning from a component
supplier to a provider of security, identity management and touch control
solutions,” said AuthenTec CEO Scott Moody. “The fourth quarter
marked a milestone for AuthenTec and our industry with the launch of the first
smartphone in the U.S. to incorporate a fingerprint sensor, the LG eXpo from
AT&T. While we believe this marks a significant achievement, we
are even more excited about the global opportunities for our AES1750 sensor
introduced earlier this week, the first smart sensor to take advantage of our
TouchStone™ packaging technology. The AES1750 delivers the
combination of features and aesthetic appeal needed for high-visibility
integration in today’s feature phones and smartphones.”
“We have
also achieved meaningful success in the development of TrueSuite™, which has now
been designed in by five PC OEMs for integration into multiple laptop models
over the course of the next two quarters,” added Moody. “We expect
TrueSuite to drive incremental and recurring revenue through multiple channels
beginning later this year. Along with our TrueSuite initiatives, we
also recently announced our new AES2660 smart sensor for the PC
market. This 192-pixel-wide sensor complements our AES1660 128-pixel
wide smart sensor introduced six months ago, providing PC customers the ability
to choose the best sensor for their particular platform. Finally, we
plan to introduce our first TouchStone-packaged product for the PC market in the
coming months.”
Business
Outlook:
Mr. Moody
concluded, “Looking ahead to the first quarter of 2010, we expect revenue to
range between $8.0 million and $8.4 million, in line with our fourth quarter
2009 performance. The midpoint of this guidance represents an
increase of 16 percent over the year-ago quarter and reflects strong growth in
our wireless products and market acceptance of our newer PC products during a
historically soft seasonal quarter. Operating expenses are expected
to moderately increase sequentially due to legal expenses resulting in an
expected non-GAAP net loss per diluted share of between $0.07 and
$0.09.”
Fourth
Quarter 2009 Financial Results Webcast and Conference Call:
AuthenTec
will host a conference call to discuss its fourth quarter 2009 financial results
and other information that may be material to investors at 5:00 p.m. Eastern
Time (ET) today, February 18, 2010. Investors and analysts may join the
conference call by dialing 800-291-5365 and providing the participant pass code
92147905. International callers may join the teleconference by
dialing 617-614-3922 and using the same pass code. A replay of the
conference call will be available beginning at 8:00 p.m. ET and will remain
available until midnight ET on Thursday, February 25, 2010. The U.S. replay
number is 888-286-8010, with a confirmation code of 31088781.
International callers should dial 617-801-6888, with the same confirmation
code. A live web cast of the conference call will be accessible from the
Investor section of the Company's web site at http://investors.authentec.com.
Following the live web cast, an archived version will be made available on
AuthenTec’s web site.
Use of GAAP and Non-GAAP Financial
Metrics:
To
supplement AuthenTec’s consolidated financial statements presented in accordance
with GAAP, the Company uses non-GAAP financial measures that exclude from the
statement of operations the effects of stock-based compensation, certain
acquisition-related charges, amortization of certain intangible assets,
impairments on investments, and costs related to a reduction in workforce.
AuthenTec uses the above non-GAAP financial measures internally to understand,
manage and evaluate the business. Management believes it is useful for itself
and investors to review, as applicable, both GAAP information and the non-GAAP
measures in order to assess the performance of continuing operations and for
planning and forecasting in future periods. The presentation of these non-GAAP
measures is intended to provide investors with an understanding of the Company’s
operational results and trends that enables them to analyze the base financial
and operating performance and facilitate period-to-period comparisons and
analysis of operational trends. AuthenTec believes the presentation of these
non-GAAP financial measures is useful to investors in allowing for greater
transparency with respect to supplemental information used by management in its
financial and operational decision-making. Non-GAAP financial
measures should be considered in addition to results prepared in accordance with
GAAP, but should not be considered substitutes for or superior to GAAP results.
In addition, our non-GAAP financial measures may not be comparable to similarly
titled measures utilized by other companies since such other companies may not
calculate such measures in the same manner as we do.
Investors
are encouraged to review the reconciliation of these non-GAAP financial measures
to the comparable GAAP results, which are provided in Table 2 after the text of
this release. For additional information regarding these non-GAAP financial
measures, and management's explanation of why it considers such measures to be
useful, refer to the filings made from time to time with the Securities and
Exchange Commission.
Forward
Looking Statements:
This
press release contains statements that may relate to expected future results and
business trends that are based upon AuthenTec’s current estimate, expectations,
and projections about the industry, and upon management’s beliefs, and certain
assumptions it has made that are “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Words such as “anticipates,”
“guidance,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
“may,” “will,” “prospects,” “outlook,” “forecast,” and variations of these words
or similar expressions are intended to identify “forward-looking statements.” In
addition, any statements that refer to expectations, projections, or other
characterizations of future events or circumstances, including any underlying
assumptions, are “forward-looking statements.” Such statements are not
guarantees of future performance and are subject to certain risks,
uncertainties, and assumptions that are difficult to predict. Therefore, the
Company’s actual results may differ materially and adversely from those
expressed in any “forward-looking statement” as a result of various factors.
These factors include, but are not limited to: demand for, and market acceptance
of, new and existing fingerprint sensors in the PC and wireless markets, general
market and macroeconomic conditions, the Company’s ability to secure design wins
for enterprise and consumer laptops and wireless devices, customer design wins
materializing into production programs, the timely introduction of new products,
the rate at which the Company increases its activity and opportunities in the
wireless market, and additional opportunities in various markets for
applications that might use AuthenTec’s products, and changes in product mix, as
well as other risks detailed from time to time in its SEC filings, including
those described in AuthenTec’s annual report on Form 10-K filed with the SEC on
March 18, 2009. These “forward-looking statements” are made only as of the date
hereof, and the Company undertakes no obligation to update or revise the
“forward-looking statements,” whether as a result of new information, future
events or otherwise.
About
AuthenTec
AuthenTec
brings multiple touch-powered features including navigation, personalization,
convenience and security to 50 million PCs and peripherals, cell phones and
other products. The Company’s newest generation of smart sensors, software and
TrueSuite™ client applications give users secure one-touch access to their
favorite websites, online social networks and digital identity. AuthenTec has
the broadest product and patent portfolio in the industry today, and helps
enable the Power of Touch® for
millions of people at home, at work or on the move. For more information,
visit www.authentec.com or
follow us at twitter.com/authentecnews.
#
# #
Investor
Contact:
Leanne K.
Sievers
Executive
Vice President, Investor Relations
Shelton
Group Investor Relations
949-224-3874
lsievers@sheltongroup.com
Media
Contact:
Brent
Dietz
Director
of Communications
AuthenTec
321-308-1320
brent.dietz@authentec.com
|
AuthenTec,
Inc.
|
||||||||||||
|
Consolidated
Statements of Operations
|
||||||||||||
|
(In
thousands, except per share amounts)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
Table
1
|
||||||||||||
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||||||
|
January
1,
|
October
2,
|
January
2,
|
January
1,
|
January
2,
|
||||||||||||||||
|
2010
|
2009
|
2009
|
2010
|
2009
|
||||||||||||||||
|
Revenue
|
$ | 8,315 | $ | 10,267 | $ | 11,615 | $ | 34,066 | $ | 63,948 | ||||||||||
|
Cost
of revenue
|
4,533 | 5,616 | 6,325 | 18,369 | 33,397 | |||||||||||||||
|
Gross
profit
|
3,782 | 4,651 | 5,290 | 15,697 | 30,551 | |||||||||||||||
| 45.5 | % | 45.3 | % | 45.5 | % | 46.1 | % | 47.8 | % | |||||||||||
|
Operating
expenses:
|
||||||||||||||||||||
| 3,400 | 3,644 | 3,546 | 14,491 | 16,459 | ||||||||||||||||
| 1,815 | 2,028 | 1,692 | 7,649 | 9,466 | ||||||||||||||||
| 1,570 | 3,186 | 1,526 | 11,278 | 6,580 | ||||||||||||||||
|
Total
operating expenses
|
6,785 | 8,858 | 6,764 | 33,418 | 32,505 | |||||||||||||||
|
Operating
loss
|
(3,003 | ) | (4,207 | ) | (1,474 | ) | (17,721 | ) | (1,954 | ) | ||||||||||
|
Other
income (expense):
|
||||||||||||||||||||
|
Impairment
on investments
|
(19 | ) | — | (266 | ) | (47 | ) | (266 | ) | |||||||||||
|
Interest
income
|
49 | 52 | 396 | 365 | 2,265 | |||||||||||||||
|
Total
other income (expense), net
|
30 | 52 | 130 | 318 | 1,999 | |||||||||||||||
|
Net
Income (loss)
|
$ | (2,973 | ) | $ | (4,155 | ) | $ | (1,344 | ) | $ | (17,403 | ) | $ | 45 | ||||||
|
Net
income (loss) per share:
|
||||||||||||||||||||
|
Basic
|
$ | (0.10 | ) | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | 0.00 | ||||||
|
Diluted
|
$ | (0.10 | ) | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.61 | ) | $ | 0.00 | ||||||
|
Shares
used in computing net income (loss) per common share:
|
||||||||||||||||||||
|
Basic
|
28,685 | 28,668 | 28,622 | 28,663 | 28,339 | |||||||||||||||
|
Diluted
|
28,685 | 28,668 | 28,622 | 28,663 | 30,308 | |||||||||||||||
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||||||
|
January
1,
|
October
2,
|
January
2,
|
January
1,
|
January
2,
|
||||||||||||||||
|
2010
|
2009
|
2009
|
2010
|
2009
|
||||||||||||||||
|
Other
Financial Metrics:
|
||||||||||||||||||||
|
Stock-based
compensation expense:
|
||||||||||||||||||||
|
Cost
of revenue
|
55 | 68 | 24 | 254 | 109 | |||||||||||||||
|
Research
and development
|
254 | 231 | 208 | 954 | 773 | |||||||||||||||
|
Selling
and marketing
|
216 | 255 | 148 | 957 | 665 | |||||||||||||||
|
General
and administrative
|
209 | 261 | 205 | 1,034 | 871 | |||||||||||||||
|
Costs
related to reduction in workforce:
|
||||||||||||||||||||
|
Cost
of revenue
|
- | - | - | - | - | |||||||||||||||
|
Research
and development
|
- | - | - | 141 | - | |||||||||||||||
|
Selling
and marketing
|
38 | 50 | - | 178 | - | |||||||||||||||
|
General
and administrative
|
- | - | - | 3 | - | |||||||||||||||
|
Legal
and acquisition related costs
|
||||||||||||||||||||
|
General
and administrative
|
468 | 1,747 | - | 4,816 | - | |||||||||||||||
|
Amortization
of patents
|
||||||||||||||||||||
|
Research
and development
|
24 | 23 | - | 46 | - | |||||||||||||||
|
Impairment
on investments
|
19 | - | 266 | 47 | 266 | |||||||||||||||
|
AuthenTec,
Inc.
|
||||||||||||
|
Non-GAAP
Financial Information
|
||||||||||||
|
(In
thousands, except per share amounts)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
Table
2
|
||||||||||||
|
Three
months ended
|
Twelve
months ended
|
|||||||||||||||||||
|
January
1,
|
October
2,
|
January
2,
|
January
1,
|
January
2,
|
||||||||||||||||
|
2010
|
2009
|
2009
|
2010
|
2009
|
||||||||||||||||
|
Net
income (loss) on GAAP basis:
|
$ | (2,973 | ) | $ | (4,155 | ) | $ | (1,344 | ) | $ | (17,403 | ) | $ | 45 | ||||||
|
Stock-based
compensation expense
|
734 | 815 | 585 | 3,199 | 2,418 | |||||||||||||||
|
Costs
related to reduction in workforce
|
38 | 50 | - | 322 | - | |||||||||||||||
|
Legal
and acquisition related costs
|
468 | 1,747 | - | 4,816 | - | |||||||||||||||
|
Amortization
of patents
|
24 | 23 | - | 46 | - | |||||||||||||||
|
Impairment
on investments
|
19 | - | 266 | 47 | 266 | |||||||||||||||
|
Net
income (loss) on non-GAAP basis:
|
$ | (1,690 | ) | $ | (1,520 | ) | $ | (493 | ) | $ | (8,973 | ) | $ | 2,729 | ||||||
|
Non-GAAP
basic earnings per share
|
$ | (0.06 | ) | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.31 | ) | $ | 0.10 | ||||||
|
Non-GAAP
diluted earnings per share
|
$ | (0.06 | ) | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.31 | ) | $ | 0.09 | ||||||
|
AuthenTec,
Inc.
|
||||||
|
Consolidated
Balance Sheets
|
||||||
|
(In
thousands)
|
||||||
|
(Unaudited)
|
||||||
|
Table
3
|
||||||
|
January
1,
|
January
2,
|
|||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 27,482 | $ | 45,193 | ||||
|
Short-term
investments
|
24,893 | 18,132 | ||||||
|
Accounts
receivable, net
|
3,208 | 3,985 | ||||||
|
Inventory
|
2,245 | 5,770 | ||||||
|
Other
current assets
|
1,123 | 839 | ||||||
|
Total
current assets
|
58,951 | 73,919 | ||||||
|
Long-term
investments
|
3,173 | 5,334 | ||||||
|
Other
long-term assets
|
1,007 | 494 | ||||||
|
Property
and equipment, net
|
3,048 | 3,716 | ||||||
|
Total
assets
|
$ | 66,179 | $ | 83,463 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities
|
||||||||
|
Accounts
payable
|
$ | 2,458 | $ | 4,050 | ||||
|
Other
accrued liabilities
|
3,380 | 4,927 | ||||||
|
Total
current liabilities
|
5,838 | 8,977 | ||||||
|
Deferred
rent
|
514 | 417 | ||||||
|
Total liabilities
|
6,352 | 9,394 | ||||||
|
Stockholders'
equity
|
||||||||
|
Common
stock and additional paid in capital
|
153,350 | 150,123 | ||||||
|
Other
comprehensive income (loss)
|
(195 | ) | (129 | ) | ||||
|
Accumulated
deficit
|
(93,328 | ) | (75,925 | ) | ||||
|
Total
stockholders' equity
|
59,827 | 74,069 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 66,179 | $ | 83,463 | ||||