ValiCert, Inc. a leading provider of secure solutions for paperless e-Business, announced financial results for the fourth quarter and year ended December 31, 2001. Total revenues for the quarter were $6.3 million, which is consistent with the Company’s revised projections, and represented a 51% increase over revenues of $4.1 million in the quarter ended December 31, 2000. For the year ended December 31, 2001, total revenues were $24.2 million, a 105% increase over revenues of $11.8 million for the prior year.
The pro forma loss for the quarter ended December 31, 2001, excluding amortization of intangibles and stock compensation, was $3.8 million, or $0.16 per pro forma share, as compared with a pro forma loss of $6.6 million or $0.27 per share in the fourth quarter a year ago. The net loss for the quarter, including the amortization of intangibles and stock compensation, was $5.0 million or $0.22 per share as compared to a net loss of $8.4 million or $0.40 per share in the year ago quarter.
The pro forma loss for the year ended December 31, 2001, excluding amortization of intangibles and stock compensation, was $23.2 million or $0.99 per pro forma share. The net loss for the year ended December 31, 2001, including the amortization of intangibles and stock compensation, was $28.4 million, or $1.27 per share. For all periods presented, pro forma share information assumes conversion of preferred stock into common and the exercise of options and warrants using the treasury stock method. The company reported cash and equivalents of $23.6 million at the end of the fourth quarter of 2001.
“While we are disappointed by our fourth quarter revenue shortfall we are pleased that we again reduced our operating losses and met our bottom-line guidance,” said Yosi Amram, president and chief executive officer of ValiCert, Inc. “Despite difficult economic conditions we were successful in signing up 13 new users across several of our key verticals. Following the preliminary announcement of our results we moved swiftly to implement our restructuring initiatives, and now with a leaner and more focused organization, we feel we are better positioned to deliver on our plan and continue our growth moving forward.”
ValiCert e-Pay Secure(TM) — October 15, ValiCert announced ValiCert e-Pay Secure, a new solution designed specifically for banks, payment networks and payment processors to allow them to develop secure payment solutions for trusted business-to-business and consumer e-Payments. ValiCert e-Pay Secure helps banks, financial institutions and payment networks, streamline payment processes, improve productivity and reduce overall costs associated with manual payment methods. Customers utilizing this solution include Bank of Tokyo Mitsubishi, Industrial Bank of Japan, Sanwa Bank and Sumitomo Mitsui Banking Corporation. Partners announced in conjunction with this new offering included IBM, Unisys and SWIFT.
During the quarter, ValiCert announced Andersen (formerly Arthur Andersen) of Spain as a new member of the ValiCert Affiliate Network(TM). This newest member of the ValiCert Affiliate Network will now offer ValiCert trusted transaction solutions as part of their e-Business security infrastructure.
Arcot — November 7, ValiCert and Arcot Systems, Inc., a leading provider of solutions for securing e-Business, announced that their products are interoperable and they are jointly promoting them to member banks participating in the Visa Authenticated Payment Program. Authenticated payments and digital receipts enable Visa International’s 21,000 issuing financial institutions and merchants to ensure safe and secure Internet payments, reduce online fraud and boost consumer confidence in e-Commerce.
Microsoft — October 25, ValiCert announced that it is collaborating with Microsoft on delivering the Trusted Community Solution (TCS), a packaged solution of an Identrus compliant architecture for the Microsoft(R) Windows(R) 2000 platform. The Trusted Community Solution was developed in an alliance among Unisys, Microsoft and Baltimore Technologies and will enable financial institutions to rapidly create a secure environment for high-value transactions on the Windows 2000 server family.
XRT — October 3, ValiCert announced that it has formed a partnership with XRT that will incorporate ValiCert e-Treasury Secure(TM) into its XRT’s Pilot V Enterprise Applications to enable the delivery of secure financial transaction capabilities to the desks of corporate treasurers. This integration of complementary technologies is expected to allow enterprises to safely and securely exchange financial information via electronic messaging across multiple conduits and platforms.
Tradenable Acquisition — December 24, ValiCert announced a definitive agreement to acquire business payments and settlement intellectual property, key personnel and other assets from privately held Tradenable Inc., of Redwood Shores, Calif., a leader in online financial settlement services. The payments-related intellectual property includes, but is not limited to, software code, trademarks and technical expertise. The acquisition of these assets builds on ValiCert’s strategy of providing leading solutions to specific industries including the financial services and healthcare insurance markets.
Palo Alto Investors — November 15, ValiCert announced that it completed a $5,000,000 equity investment from Palo Alto Investors, a private investment firm. This deal strengthened the ValiCert corporate balance sheet and provided flexibility for future opportunities.
ValiCert is a leading provider of secure solutions for paperless e-Business. ValiCert Global 2000 customers in financial services, healthcare, manufacturing and government sectors realize significant ROI from deploying ValiCert solutions to help migrate costly or inefficient business processes to the Internet, without losing any trust and security in the process. ValiCert’s family of products conforms to the guidelines of the e-Sign legislation and provides a secure, legal-grade environment for conducting online commerce.
ValiCert has technology and marketing alliances with a range of security, e-Commerce, systems integrators and application specific companies. With its products and services available through a worldwide direct sales force, resellers and global affiliate network, ValiCert is headquartered in Mountain View, California and has operations throughout the Americas, Europe and Asia. More information about ValiCert’s 4Q/01 performance is available at CardData ([www.carddata.com]).