Certicom Corp. says revenue outlook is healthy
Certicom Corp. (OTC: CERTF) expects revenue growth over the next fiscal year, but net income will depend in part on an ongoing lawsuit, executives said on a Thursday morning earnings call.
“Management anticipates healthy annual revenue growth on a year-to-year basis,” CFO Herve Seguin said on the call.
Last week, the cryptographic software maker announced a patent infringement lawsuit against Sony Corp. (NYSE: SNE). Crotty said the legal process will govern the case’s progress.
“If it goes to trial, it will be 20 months,” CEO Bernard Crotty said. “We don’t have any indication at this point that we should expect anything different.”
Before Thursday’s opening bell, the software maker reported a net loss of $1.2 million, or $0.03 a share, for the fourth quarter ended April 30, down from a $0.2 loss, or $0.00 per share, a year earlier. Analysts polled by Reuters were expecting a $0.01 loss per share. Certicom recorded quarterly revenue of $6.5 million, up from $5.1 in the year-ago period.
“The fourth quarter revenue reflects the timing of contract closings for several large, multi-year contracts,” Crotty said. “We are committed to more rapid and steady progress going forward.”
An increase in operating costs in the fourth quarter – to $6.3 million, from $4.5 million – reflected more spending on product development, sales commissions and legal expenses, the company said.
Crotty announced on the call that the Canada-based company was successful in securing several recurring revenue contracts with large companies covering a broad range of sectors.
“The significant increase in commitments from multinationals indicates the growing global adoption of [Certicom’s encryption technology],” Crotty said.
The growing value of content sent across wireless networks demands a reliable security solution, Crotty said on the call. He said the company recently signed a deal with Visto Corp. to provide cryptography for mobile e-mail and messaging applications.
