Annual revenue increased 7% over prior year
MCLEAN, VA / ACCESSWIRE / March 25, 2020 / Cyren (NASDAQ:CYRN) today announced its fourth quarter and full year 2019 financial results for the period ending December 31, 2019.
During the fourth quarter, Cyren reported quarterly revenues of $9.5 million, compared to $9.5 million during the fourth quarter of 2018. For the full year ended 2019, revenues were $38.4 million compared to $35.9 million in the prior year, which represents a 7% annual increase over 2018.
GAAP net loss for the fourth quarter was $5.3 million, and for the full year 2019, net loss was $18.0 million. Non-GAAP net loss for the quarter improved to $3.3 million and $15.3 million for the full year ended 2019.
'2019 was a transition year for Cyren with new leadership, a revised strategy and more focus on increasing ARR growth, especially in the enterprise market,' said Brett Jackson, CEO of Cyren. 'We launched several strategy initiatives in Q4 that we believe will drive more aggressive growth and our team is fully engaged in execution. Despite the current uncertain economic conditions, we believe security will remain a top corporate priority and we are confident that our growth initiatives will positively impact our results over the coming quarters.'
Fourth Quarter and Full Year 2019 Financial Highlights:
Revenues for the fourth quarter of 2019 were $9.5 million, compared to $9.5 million during the fourth quarter of 2018. Revenues for the full year were $38.4 million compared to $35.9 million in 2018.
GAAP net loss for the fourth quarter of 2019 was $5.3 million, compared to a net loss of $5.6 million in the fourth quarter of 2018. GAAP net loss for the full year ended 2019 was $18.0 million compared to $19.4 million for the full year 2018.
GAAP loss per basic and diluted share for the fourth quarter of 2019 was $0.09, compared to a loss of $0.10 per basic and diluted share for the fourth quarter of 2018. GAAP loss per share was $0.33 in 2019 compared to $0.36 in 2018.
Non-GAAP net loss for the fourth quarter of 2019 was $3.3 million, compared to a Non-GAAP net loss of $4.4 million for the fourth quarter of 2018. Non-GAAP net loss for the full year 2019 was $15.2 million, a decrease compared to $16.1 million during 2018.
Non-GAAP loss per basic and diluted share was $0.06 for the fourth quarter of 2019, compared to a Non-GAAP loss of $0.08 per share in fourth quarter of 2018. Non-GAAP loss per basic and diluted share was $0.28 for 2019 compared to $0.30 per share in 2018.
Cash used in operating activities during the fourth quarter of 2019 was $4.6 million, compared to operating cash usage of $5.6 million during the fourth quarter of 2018.
Net cash flow for the fourth quarter of 2019 was $2.0 million, compared to $4.0 million during the fourth quarter of 2018.
Cash balance as of December 31, 2019, was $11.6 million, compared to $17.6 million as of December 31, 2018. This includes the proceeds of the Rights Offering which closed in November 2019.
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.'
Subsequent to the end of the quarter, on March 17, 2020, Cyren announced a private placement with a select group of accredited and institutional investors for the purchase of $10.25 million aggregate principal amount of convertible debentures. The debentures are unsecured, subordinated obligations of Cyren and carry a 5.75% interest rate per annum, payable semi-annually in cash or ordinary shares at Cyren's election. The debentures have a four year term and mature in March 2024, unless converted in accordance with their terms prior to maturity. The debentures have a conversion price of $0.75 per share and are convertible into 1,333 ordinary shares per $1,000 principal amount of debentures. The closing of the sale of the debentures was completed on March 19, 2020 and therefore the proceeds of the transaction are not included in the cash balance on the balance sheet as of December 31, 2019.
Financial Results Conference Call:
The company will host a conference call at 10 a.m. Eastern Time (4 p.m. Israel Time) on Wednesday, March 25, 2020 to discuss fourth quarter and full year 2019 results.
U.S. Dial-in Number: 1-877-407-0312
Israel Dial-in Number: 1-80-940-6247
International Dial-in Number: 1-201-389-0899
The call will be simultaneously webcast live on the investor relations section of Cyren's website at https://ir.cyren.com, or by using the link: https://webcasts.eqs.com/register/cyren2020032510_en/.
For those unable to participate in the live conference call, a replay will be available until April 8, 2020. To access the replay, the U.S. dial in number is 1-877-660-6853 and the non-U.S. dial in number is 1-201-612-7415. Callers will be prompted for replay conference ID number 13699898. An archived version of the webcast will also be available on the investor relations section of the company's website at https://ir.cyren.com/events.
More than 1.3 billion users around the world rely on Cyren's 100% cloud security solutions to protect them against cyber attacks and data loss every day. Powered by the world's largest security cloud, Cyren (NASDAQ: CYRN) delivers fast time-to-protection with award-winning email security, cloud sandboxing and DNS filtering services for business, and threat intelligence solutions for service providers and security vendors like Microsoft, Google and Check Point. Learn more at www.cyren.com.
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, adjustments to earn-out obligations and legal settlements, and capitalization of technology. 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 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 our CEO transition, 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 publicly filed reports, which are available through www.sec.gov.
Mike Myshrall, CFO
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of U.S. dollars, except per share amounts)
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(in thousands of U.S.dollars, except per share amounts)
(1) 2019 amount includes $224 of impairment related to R&D, an acquired intangible asset from a prior acquisition.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
CONDENSED CONSOLIDATED CASH FLOW DATA
(in thousands of U.S. dollars)
SOURCE: Cyren Ltd via EQS Newswire
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