Cyren Announces Third Quarter 2018 Financial Results

MCLEAN, Va., Nov. 14, 2018 /PRNewswire/ -- Cyren (NASDAQ: CYRN) today announced its third quarter 2018 financial results for the period ending September 30, 2018.

During the third quarter, Cyren reported quarterly revenues of $9.6 million – an increase of 26% over the third quarter of 2017.  During the quarter, enterprise bookings were up 189% over the third quarter of 2017, and year-to-date, enterprise bookings are up 223% over the same period during the prior year.

"We are delighted with our financial results and continued success during the third quarter," said Lior Samuelson, CEO and Chairman of the Board at Cyren. "This is the second straight quarter of record quarterly revenues, driven primarily by the growth in demand for our anti-phishing technology and enterprise email security on our Cyren Cloud Security platform."

Third Quarter 2018 Financial Highlights:

• Revenues for the third quarter of 2018 were $9.6 million, compared to $7.6 million during the third quarter of 2017, and $9.2 million last quarter.  This translates to an increase of 26% year-over-year, and 4% quarterly sequential revenue growth.
• GAAP net loss for the third quarter of 2018 was $4.4 million, compared to a net loss of $3.4 million in the third quarter of 2017, and $4.2 million last quarter.
• GAAP loss per basic and diluted share for the third quarter of 2018 was $0.08, compared to a loss of $0.09 per basic and diluted share for the third quarter of 2017, and $0.08 last quarter.
• Non-GAAP net loss for the third quarter of 2018 was $3.3 million, compared to a Non-GAAP net loss of $3.3 million for the third quarter of 2017, and $3.5 million last quarter.
• Non-GAAP loss per basic and diluted share was $0.06 for the third quarter of 2018, compared to a Non-GAAP loss of $0.09 per share in third quarter of 2017, and $0.07 last quarter.
• Operating cash usage during the third quarter of 2018 was $2.6 million, compared to operating cash usage of $0.5 million during the third quarter of 2017.
• Net cash flow for the third quarter of 2018 was negative $3.1 million, compared to negative $1.7 million during the third quarter of 2017.
• Total cash, cash equivalents and restricted cash as of September 30, 2018 was $14.1 million, compared to $10.2 million as of September 30, 2017.

For information regarding the non-GAAP financial measures discussed in this release, please see "Use of Non-GAAP Financial Measures" and "Reconciliation of Selected GAAP Measures to Non-GAAP Measures."

Recent Business Highlights:

• In August Cyren signed its largest enterprise deal to date – a multi-year, multi-million dollar contract to provide managed email security to a multi-national industrial conglomerate with over 80,000 employees. Cyren's CCS platform was chosen in a competitive bake-off RFP process over other leading email security vendors.
• In September, Cyren launched its GoCloud Partner Program, which is the company's new global channel program that provides resellers, managed service providers, and distributors with the opportunity to predictably grow recurring revenue streams through 100% cloud security products. The company also announced the program's first major distributor, Arrow Electronics, will partner to enable resellers to sell Cyren cloud security products throughout the US and Canada.
• During the third quarter, Cyren added over 60 new enterprise customers onto its CCS email and web security platform. Average new order size and annual contract value for new customers grew over 190% compared to the third quarter of 2017.
• Since the beginning of the third quarter, Cyren renewed and expanded four of its top ten Threat Intelligence Services contracts for extensions ranging up to three years. These companies have been customers of Cyren for an average of 12 years, and together represent annual contract value of over $6.6 million.

In September Cyren filed a shelf registration statement on Form F-3.  Cyren intends to continue to make investments to support its business growth and will likely require additional funds to respond to business challenges, including the need to develop new features to enhance our services and products and improve our operating infrastructure.  Accordingly, Cyren may need to engage in equity or debt financings to secure additional funds.  The registration statement is intended to give Cyren additional flexibility to access the capital markets on a timely and cost effective basis and enables the company to raise up to $50 million in equity or debt over the next three years.

Financial Results Conference Call:

The company will host a conference call at 10 a.m. Eastern Time (5 p.m. Israel Time) on Wednesday, November 14, 2018 to discuss third quarter results.

The call will be simultaneously webcast live on the investor relations section of Cyren's website at www.cyren.com/ir.html, or by using the following link: http://public.viavid.com/index.php?id=132021.

For those unable to participate in the live conference call, a replay will be available until November 28, 2018. To access the replay, the U.S. dial in number is 1-844-512-2921 and the non-U.S. dial in number is 1-412-317-6671. Callers will be prompted for replay conference ID number 8958782. An archived version of the webcast will also be available on the investor relations section of the company's website at http://ir.cyren.com/events.

About Cyren:

More than 1.3 billion users around the world rely on Cyren's 100% cloud internet security solutions to protect them against cyber attacks and data loss every day. Powered by the world's largest security cloud, Cyren (NASDAQ and TASE: CYRN) delivers fast time to protection from cyber threats with award-winning security as a service for web, email, sandboxing, and DNS for enterprises, and embedded threat intelligence solutions for security vendors and service providers. Customers like Google, Microsoft and Check Point are just a few of the businesses that depend on Cyren every day to power their security. Learn more at www.cyren.com.

Blog: http://blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc

Use of Non-GAAP Financial Measures:

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: stock-based compensation expenses, amortization of acquired intangible assets, and deferred taxes related to acquisitions, one-time gain from sale of investment in affiliate, adjustments to earn-out obligations, capitalization of technology, accretion of discount on convertible note and change in fair value of the embedded conversion feature. The purpose of such adjustments is to give an indication of the company's performance exclusive of non-cash charges and other items that are considered by management to be outside of the company's core operating results. The company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.

Company management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate the business and make operating decisions.

These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. The company believes this adjustment is useful to investors as a measure of the ongoing performance of the business. The company believes these non-GAAP financial measures provide consistent and comparable measures to help investors understand the company's current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it important to make these non-GAAP adjustments available to investors.

This press release contains forward-looking statements, including projections about the company's business, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, and statements including words such as "expect," "plan," "estimate," "anticipate," or "believe" are forward-looking statements. These statements are based on information available at the time of the press release and the company assumes no obligation to update any of them. The statements in this press release are not guarantees of future performance and actual results could differ materially from current expectations as a result of numerous factors, including business conditions and growth or deterioration in the internet security market, technological developments, products offered by competitors, availability of qualified staff, and technological difficulties and resource constraints encountered in developing new products, as well as those risks described in the company's Annual Reports on Form 20-F and reports on Form 6-K, which are available through www.sec.gov.

Company Contact
Mike Myshrall, CFO
Cyren
+1.703.760.3320
[email protected]

Media Contact
Matthew Zintel
Zintel Public Relations
+1.281.444.1590
[email protected]

SOURCE Cyren

Related Links

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