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10.5 million loss.....

By: faul in ALEA | Recommend this post (0)
Sat, 17 Mar 12 1:24 AM | 77 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06871 of 54959
(This msg. is a reply to 06870 by DigSpace)
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Was this expected?

The Company expects to report significant changes in the results of its operations in 2011 from its results of operations in 2010. These changes relate to a combination of (i) the Company’s acquisition of Safend in September of 2011, (ii) the completion of the consolidation and purchase accounting for the Safend acquisition and (iii) the Company’s operating performance in 2011. However, the Company is still in the process of assessing the errors in the Safend financial statements and completing the consolidation and related purchase accounting for Safend.

Based on the Company’s current estimates and depending on the completion of the accounting error assessment for its Safend subsidiary, the Company expects to report a net loss for the year ended December 31, 2011 of approximately $10.5 million as compared to a net loss of approximately $4.1 million for the year ended December 31, 2010. Factors contributing to this estimated increase in net loss include (i) an increase in non-Safend stock based compensation of approximately $2.6 million as a result of increased estimated fair values for the 2011 stock-based payment awards, (ii) an increase in non-Safend salaries and related benefits totaling approximately $5.7 million in support of its growing customer base, (iii) an increase of approximately $1.8 million in non-Safend professional services expenses, consisting primarily of acquisition costs, recruitment fees and outsourced engineering services and (iv) the net loss of Safend, a wholly-owned subsidiary acquired on September 22, 2011, the sum of which are expected to be partially offset by an increase in non-Safend net revenues of approximately $8.3 million, primarily as the result of revenue recognized on its large class customer license upgrades which were recognized ratably during 2011 and for which the Company had not achieved vendor-specific objective evidence.

All of the foregoing estimates are subject to the completion of the Company’s 2011 financial statements as well as the Company’s continuing review and assessment of the above referenced accounting errors for Safend and their impact on the accounting for the purchase business combination. Accordingly, the estimates above could change. The Company expects to report on its final results of operations promptly following the completion of its 2011 annual financial statements.


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The above is a reply to the following message:
Re: Credant
By: DigSpace in ALEA
Sat, 17 Mar 12 1:04 AM 		Msg. 06870 of 54959

The employ a lot of engineers, but were largely a file/folder encryption vendor with products I believe that were home grown. The needed FDE and licensed from Mobile Armor (who was dying, and I think MA had some of the same VCs) and then Protector from Safend for removable media (who had the same VCs ...). The VCs let MA fall into Trend and Safend to fall into Wave, but it looks like Credant has pulled of casf-flow+ or even profitability, but they do have engineers, and I would consider them an engineering firm that did what they had to do as things advanced. I suspect that the royalties for MA and Safend may be less than stellar (the whole thing being the VCs selling their products to themselves). Bitlocker management is likely part of the MA IP. MA is to them (even though it is Trend) as N*able was to Wave in some ways, except Wave *bought* Nable, and Credant is in the odd spot of having two products owned by their now public competitors).

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