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Qualys Announces First Quarter 2013 Financial Results

Revenue Growth of 17% Year-Over-Year

GAAP EPS Loss of $0.02, Non-GAAP EPS of $0.01

 

REDWOOD CITY, Calif, May 6, 2013 (GLOBE NEWSWIRE) -- Qualys, Inc. (Nasdaq:QLYS), a pioneer and leading provider of cloud security and compliance solutions, today announced financial results for the first quarter ended March 31, 2013. For the quarter, the Company reported revenues of $24.9 million, GAAP net loss of $0.6 million, non-GAAP net income of $0.3 million, adjusted EBITDA of $2.8 million, GAAP loss per diluted share of $0.02, and non-GAAP earnings per diluted share of $0.01.

Philippe Courtot, Chairman and Chief Executive Officer of Qualys, said, "We have kicked off 2013 with a solid first quarter performance, driving revenue growth from expanded relationships with existing customers, as well as from the continued addition of new customers and partners. In particular, we saw continued strong adoption of our high-growth Web Application Scanning (WAS) and Policy Compliance solutions by both existing and new customers in the quarter, demonstrating Qualys' ability to continue to diversify our revenues. At the RSA Conference this year, we introduced key updates to our highly scalable cloud platform, including the release of version 3.0 of WAS. We remain confident in our outlook for 2013 as we continue to focus on innovation to drive revenue growth and to generate value for our shareholders." 

First Quarter 2013 Financial Highlights

Revenues: Revenues for the first quarter of 2013 increased by 17% to $24.9 million compared to $21.2 million in the same quarter last year. Revenue growth was driven by a combination of increased sales of subscriptions for additional solutions to existing customers, as well as sales of subscriptions to new customers. 

Bookings: Four-Quarter Bookings (a non-GAAP financial measure) were $105.1 million for the four-quarter period ended March 31, 2013, an increase of $14.8 million, or 16%, compared to $90.3 million for the four-quarter period ended March 31, 2012. The increase in Four-Quarter Bookings was primarily due to sales of subscriptions for additional solutions to our existing customer base, as well as sales of subscriptions to new customers. 

Gross Profit: GAAP gross profit for the first quarter of 2013 increased by 12% to $19.1 million compared to $17.0 million in the same quarter last year. GAAP gross margin was 77% for the first quarter of 2013 compared to 80% in the same quarter last year. Non-GAAP gross profit for the first quarter of 2013 increased by 12% to $19.2 million compared to $17.1 million in the same quarter last year. Non-GAAP gross margin was 77% for the first quarter of 2013, compared to 81% in the same quarter last year.  The decrease in gross margin is related to increased depreciation resulting from higher levels of capital expenditures, which started in the second half of 2011 and continued through the first quarter of 2013 to support the growth of our business, including the deployment of new solutions and the expansion of our data center infrastructure.

Operating Income (Loss): GAAP operating loss for the first quarter of 2013 increased to $0.3 million compared to an operating loss of $0.1 million in the same quarter last year.  GAAP operating margin remained constant at (1%) in the first quarter of 2013 and in the same quarter last year. Non-GAAP operating income for the first quarter of 2013 increased to $0.7 million compared to $0.5 million in the same quarter last year. Non-GAAP operating margin remained constant at 3% in the first quarter of 2013 and in the same quarter last year.

Net Income (Loss): GAAP net loss for the first quarter of 2013 was $0.6 million, or a net loss of $0.02 per diluted share, compared to a net loss of $0.3 million, or a $0.05 net loss per diluted share, in the same quarter last year.  Non-GAAP net income for the first quarter of 2013 was $0.3 million, or $0.01 per diluted share, compared to a non-GAAP net income of $0.4 million, or a $0.02 net income per diluted share, in the same quarter last year.

Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2013 increased by 22% to $2.8 million compared to $2.3 million in the same quarter last year. As a percentage of revenues, adjusted EBITDA remained constant at 11% in the first quarter of 2013 compared to the same quarter last year.

First Quarter 2013 Business Highlights

Customers:

  • New customers include:  Bank of Tokyo, Fair Isaac, HSH Nordbank, Limelight Networks, MAN Diesel & Turbo Brazil, Nationwide Insurance, Rovi, Sony Computer Entertainment, Universal Music Group, Verizon, Volkswagen Brazil, and Wellington Management.
  • Participated in the RSA Conference USA 2013 releasing new and updated solutions and meeting with more than one thousand current and prospective customers and partners.

New Products and Functionalities:

  • Released QualysGuard Vulnerability Management Connector for Amazon Web Services, which allows customers to perform continuous asset discovery and automated vulnerability scanning of their Amazon EC2 and Amazon VPC instances.
  • Announced QualysGuard Web Application Scanning (WAS) 3.0, which includes malware detection for websites and integration with Burp Suite for attack simulation, along with advanced scanning configurations and reporting enhancements.
  • Expanded free BrowserCheck service to help businesses and individuals continuously monitor browsers' software, operating system settings and security patches on users' PCs.
  • Enhanced popular FreeScan service with new comprehensive audits for Patch Tuesday vulnerabilities, OWASP threats and SCAP configuration for both internal and external systems.

Industry Recognition and Customer Validation:

  • Recognized by SC Magazine readers for the sixth time as best vulnerability management tool for QualysGuard VM.
  • The Microsoft Information Security & Risk Management team recently published a case study on their use of WAS to efficiently evaluate the security of hundreds of web applications that come online every year around the world.  To read more, please visit:   https://www.qualys.com/customers/microsoft .

Channel Partners:

  • Joined forces with Verizon to deliver cloud-based IT security and compliance solutions to the Consulting Practice of Verizon's Managed Security Services, leveraging the full suite of QualysGuard solutions.
  • Partnered with FireMon to deliver real-time network risk visibility and remediation through proactive attack simulation and threat detection.

Financial Performance Outlook

Second Quarter 2013 Guidance: Management expects revenues to be in the range of $25.9 million to $26.4 million. GAAP net income (loss) per diluted share is expected to be in the range of a loss of $0.01 to an income of $0.01 and non-GAAP net income per diluted share is expected to be in the range of $0.02 to $0.04 based on approximately 35.4 million weighted average diluted shares outstanding for the quarter.

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