AMSTERDAM, May 12, 2015 /PRNewswire/ -- AVG® Technologies N.V. (NYSE: AVG), the online security company™ for more than 200 million monthly active users, announced today it is updating financial guidance for its fiscal year ended December 31, 2015.
Based on information currently available and in connection with AVG's recently announced acquisition of Privax, a leading provider of desktop and mobile privacy services for consumers, AVG has increased its financial guidance for the full year 2015 as follows:
Revenue for the year is now expected to be in the range of $420 to $440 million, up from previous guidance of $410 to $430 million. |
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Non-GAAP adjusted net income[1] is expected to remain in the range of $94.2 million to $99.2 million, or diluted EPS of $1.80 to $1.90. |
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GAAP net income is expected to remain in the range of $48.9 million to $53.9 million, or $0.93 and $1.03 per diluted ordinary share. |
"The acquisition of Privax gives us the ability to immediately provide new and innovative privacy subscription services to our existing world-wide base of more than 200 million users and drive incremental revenues this year," said Gary Kovacs, AVG's Chief Executive Officer. "Given our solid track record of quickly accelerating revenue growth through successfully leveraging our acquisitions, we are confident in this improved financial outlook for 2015. As we continue to look at new ways to grow through innovation, collaboration and M&A activities, we remain focused on the bottom line and cash flow, and expect operating margins to remain in line with our longer term model of 30 percent."
AVG will provide more detail on its recent acquisition of Privax, including updated financial targets, together with executive presentations on the Company's strategy, product plans, M&A activity and business segment updates at its Analyst Day to be held today, May 12, from 9:55 a.m. to 3:00 p.m. ET.
The event will be available to the public via a live audio webcast at http://investors.avg.com. To listen to the live event and view the corresponding presentations, please go to the website at least 15 minutes early to register, download and install any necessary audio software.
Presentations will begin promptly at 9:55 am ET. A replay of the event, including presentation materials, will be available within 2 hours after the event at the same link.
Use of Non-GAAP Financial Information
This press release contains supplemental non-GAAP financial measures that are not calculated in accordance with U.S. GAAP. These non-GAAP measures provide additional information on the performance or liquidity of our business that we believe are useful for investors.
Adjusted net income, free cash flow and their related ratios are non-GAAP measures and should not be considered alternatives to the applicable U.S. GAAP measures. In particular, adjusted net income and free cash flow, and their related ratios, should not be considered as measurements of our financial performance or liquidity under U.S. GAAP, as alternatives to income, operating income or any other performance measures derived in accordance with U.S. GAAP or as alternatives to cash flow from operating activities as a measure of our liquidity.
Adjusted net income and free cash flow are measures of financial performance and liquidity, respectively, and have limitations as analytical tools, and should not be considered in isolation from, or as substitutes for, analysis of our results of operations, including our operating income and cash flows, as reported under U.S. GAAP. We provide these non-GAAP financial measures because we believe that such measures provide important supplemental information to management and investors about the Company's core operating results and liquidity, primarily because the non-GAAP financial measures exclude certain expenses and other amounts that management does not consider to be indicative of the Company's core operating results or business outlook or liquidity. Management uses these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, in evaluating the Company's operating performance, in planning and forecasting future periods, in making decisions regarding business operations and allocation of resources, and in comparing the Company's performance against its historical performance
They do not reflect our cash expenditure or future requirements for capital expenditure or contractual commitments, nor do they reflect the actual cash contributions received from customers; they do not reflect changes in, or cash requirements for, our working capital needs; although amortization and share-based compensation are non-cash charges, the assets being amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, investors should rely on AVG's consolidated financial statements prepared in accordance with U.S. GAAP and treat the Company's non-GAAP financial measures as supplemental information only.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to an expected range of revenue, net income, EPS, non-GAAP adjusted net income and non-GAAP EPS for the fiscal year ending December 31, 2015 and/or future periods, as well as those relating to the future prospects of AVG. Words such as "expects," "expectation," "intends," "assumes," "believes" and "estimates," variations of such words and similar expressions are also intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to: changes in our growth strategies; changes in our future prospects, business development, results of operations and financial condition; the anticipated costs and benefits of our Location Labs acquisition and other acquisitions; our ability to remediate the material weaknesses and other deficiencies identified in our internal controls or IT systems; our ability to comply with our credit agreements; changes to the online and computer threat environment and the endpoint security industry; competition from local and international companies, new entrants in the market and changes to the competitive landscape; the adoption of new, or changes to existing, laws and regulations; changes in international or national tax regulations and related proposals; the assumptions underlying the calculation of our key metrics, including the number of our active users, revenue per average active user, subscription revenue per subscriber and platform-derived revenue per thousand searches; potential effects of changes in the applicable search guidelines of our search partners; the status of or changes to our relationships with our partners, including Yahoo!, Google and other third parties; changes in our and our partners' responses to privacy concerns; our ability to successfully exit the third party search distribution business; our plans to launch new products and online services and monetize our full user base; the performance of our products, including AVG Zen; our ability to attract and retain active and subscription users; our ability to retain key personnel and attract new talent; our ability to adequately protect our intellectual property; our geographic expansion plans; the outcome of ongoing or any future litigation or arbitration, including litigation or arbitration relating to intellectual property rights; our legal and regulatory compliance efforts, including with respect to PCI compliance; and worldwide economic conditions and their impact on demand for our products and services. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements.
Further information on these factors and other risks that may affect the Company's business is included in filings AVG makes with the U.S. Securities and Exchange Commission (SEC) from time to time, including its Annual Report on Form 20-F, particularly under the heading "Risk Factors".
The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto to be included in the Company's reports on Form 6-K and Form 20-F. The Company's results of operations for the first quarter, ended March 31, 2015 are not necessarily indicative of the Company's operating results for any future periods.
These documents are available online from the SEC or in the Investor Relations section of the Company's website at http://investors.avg.com. Information on the AVG website is not part of this release. All forward-looking statements in this press release are based on information currently available to the Company, and AVG assumes no obligation to update these forward-looking statements in light of new information or future events.
About AVG Technologies (NYSE: AVG)
AVG is the online security company providing leading software and services to secure devices, data and people. AVG's award winning technology is delivered to over 200 million monthly active users world-wide. AVG's Consumer portfolio includes internet security, performance optimization, and personal privacy and identity protection for mobile devices and desktops. The AVG Business portfolio - delivered by managed service providers, VARs and resellers - offers IT administration, control and reporting, integrated security, and mobile device management that simplify and protect businesses.
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[1] AVG's expectation of non-GAAP adjusted net income excludes share-based compensation expense, acquisition amortization and certain other adjustments, and assumes a normalized tax rate of 12.5 percent. For the purpose of calculating GAAP diluted EPS and non-GAAP diluted EPS, the Company assumes approximately 52.6 million weighted-average diluted ordinary shares outstanding for the full year.
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SOURCE AVG Technologies N.V.
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