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Cyren Announces First Quarter 2021 Financial Results

·10-min read


McLean, VA, 05/17/2021 / 16:01, EST/EDT - EQS Newswire - Cyren Ltd


Cyren Continues to Gain Traction in the Anti-Phishing Market with Cyren Inbox Security

MCLEAN, VA / ACCESSWIRE / May 17, 2021 / Cyren (NASDAQ:CYRN) today announced its first quarter 2021 financial results for the period ending March 31, 2021.

During the first quarter, Cyren reported quarterly revenues of $8.8 million, compared to $9.6 million during the first quarter of 2020. GAAP net loss for the quarter was $4.2 million, compared to the $2.8 million net loss reported during the first quarter of 2020, due to lower revenues and higher R&D expenses compared to the prior year.

"Cyren continues to advance on our best growth opportunity - helping enterprise customers using Microsoft 365 mitigate phishing attacks", said Brett Jackson, CEO of Cyren. "While Q1 revenues were down year-over-year, they were inline with our plan and expectations and the variance is largely due to churn associated with our legacy products. We continue to make progress executing our plan to build a high-growth revenue stream with Cyren Inbox Security and develop a market-leading position in the anti-phishing space with the opportunity to significantly impact Cyren's revenues in the future."

First Quarter 2021 Financial Highlights:

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."

Recent Business Highlights:

Financial Results Conference Call:

The company will host a conference call at 4:30 p.m. a.m. Eastern Time (11:30 p.m. Israel Time) on Monday, May 17, 2021 to discuss first quarter 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 following link: https://www.webcast-eqs.com/cyren05172021/en.

For those unable to participate in the live conference call, a replay will be available until May 31, 2021. 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 13719133. An archived version of the webcast will also be available on the investor relations section of the company's website at https://ir.cyren.com/events.

About Cyren:
More than 1.3 billion users around the world rely on Cyren's cloud security solutions to protect them against cyber attacks and data loss every day. Powered by GlobalView, Cyren's global security cloud that identifies emerging threats on a global basis in real-time, Cyren (NASDAQ: CYRN) delivers fast time-to-protection with threat detection services, threat intelligence and enterprise email security products for leading email providers, cybersecurity vendors, service providers and enterprises. Learn more at www.cyren.com.

Blog: http://blog.cyren.com
Facebook: www.facebook.com/CyrenWeb
LinkedIn: www.linkedin.com/company/cyren
Twitter: www.twitter.com/CyrenInc

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 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 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.

Company Contact
Kenneth Tarpey, CFO
Cyren
+1.703.760.3435
kenneth.tarpey@cyren.com

CYREN LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands of U.S. dollars, except per share amounts)

Three months ended

March 31

2021

2020

Unaudited

Unaudited

Revenues

$

8,757

$

9,649

Cost of revenues

3,795

3,598

Gross profit

4,962

6,051

Operating expenses:

Research and development, net

4,250

3,344

Sales and marketing

2,638

3,036

General and administrative

2,160

2,214

Total operating expenses

9,048

8,594

Operating loss

(4,086

)

(2,543

)

Other income (expense), net

(18

)

6

Financial expenses, net

(214

)

(231

)

Loss before taxes

(4,318

)

(2,768

)

Tax benefit (provision)

121

17

Net loss

$

(4,197

)

$

(2,751

)

Net loss per share - basic and diluted

$

(0.06

)

$

(0.05

)

Weighted average number of shares outstanding:

Basic and Diluted

68,469

59,684

CYREN LTD.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(in thousands of U.S. dollars, except per share amounts)

Three months ended

March 31

2021

2020

Unaudited

Unaudited

GAAP gross profit

$

4,962

$

6,051

GAAP gross margin

57%

63%

Plus:

Stock-based compensation expense

21

44

Amortization of intangible assets

667

431

Non-GAAP gross profit

5,650

6,526

Non-GAAP gross margin

65%

68%

GAAP operating loss

(4,086

)

(2,543

)

Plus:

Stock-based compensation expense

458

645

Amortization of intangible assets

742

560

Expense (Capitalization) of technology

(151

)

(1,213

)

Non-GAAP operating loss

(3,037

)

(2,551

)

GAAP net loss

(4,197

)

(2,751

)

Plus:

Stock-based compensation expense

458

645

Amortization of intangible assets

742

560

Amortization of deferred tax assets

(54

)

(48

)

Expense (Capitalization) of technology

(163

)

(1,244

)

Non-GAAP net loss

(3,214

)

$

(2,838

)

Numerator for non-GAAP EPS calculation

(3,214

)

$

(2,838

)

Non-GAAP net loss per share

$

(0.05

)

$

(0.05

)

GAAP weighted-average shares used to

compute net loss per share

68,469

59,684

CYREN LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. dollars)

March 31

December 31

2021

2020

Unaudited

Assets

Current Assets:

Cash and cash equivalents

$

16,455

$

9,296

Trade receivables, net

721

960

Deferred commissions

953

980

Prepaid expenses and other receivables

820

779

Total current assets

18,949

12,015

Long-term deferred commissions

1,036

1,125

Long-term lease deposits and prepaids

861

937

Operating lease right-of-use assets

10,275

10,900

Severance pay fund

767

745

Property and equipment, net

3,360

3,948

Intangible assets, net

7,153

7,797

Goodwill

20,860

21,476

Total long-term assets

44,312

46,928

Total assets

$

63,261

$

58,943

Liabilities and Shareholders' Equity

Current Liabilities:

Trade payables

$

882

$

799

Convertible notes

10,000

10,000

Employees and payroll accruals

3,811

3,813

Accrued expenses and other liabilities

1,236

1,420

Operating lease liabilities

1,863

1,983

Deferred revenues

4,106

6,934

Total current liabilities

21,898

24,949

Deferred revenues

583

644

Convertible Debentures

8,456

9,248

Long-term operating lease liabilities

9,107

9,866

Deferred tax liability, net

513

655

Accrued severance pay

839

838

Other liabilities

521

706

Total long-term liabilities

20,019

21,957

Shareholders' equity

21,344

12,037

Total liabilities and shareholders' equity

$

63,261

$

58,943

CYREN LTD.

CONDENSED CONSOLIDATED CASH FLOW DATA

(in thousands of U.S. dollars)

Three months ended

March 31

2021

2020

Cash flows from operating activities:

Unaudited

Unaudited

Net loss

$

(4,197

)

$

(2,751

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

(Gain) / loss on disposal of property and equipment

18

(13

)

Depreciation

563

618

Stock-based compensation

457

645

Amortization of intangible assets

742

560

Amortization of deferred commissions

325

350

Non-cash operating lease expense

466

389

Interest on convertible notes

142

141

Interest and amortization of debt issuance costs on Convertible Debentures

176

24

Deferred taxes, net

(124

)

(64

)

Changes in assets and liabilities:

Trade receivables

211

(652

)

Prepaid expenses and other receivables

2

(326

)

Deferred commissions

(208

)

(388

)

Change in long-term lease deposits

2

(114

)

Trade payables

62

45

Employees and payroll accruals, accrued expenses and other liabilities

(176

)

(491

)

Deferred revenues

(2,774

)

(2,073

)

Accrued severance pay, net

(21

)

(23

)

Operating lease liabilities

(731

)

(420

)

Other long-term liabilities

(186

)

153

Net cash used in operating activities

(5,251

)

(4,390

)

Cash flows from investing activities:

Proceeds from sale of property and equipment

2

2

Capitalization of technology

(152

)

(1,001

)

Purchase of property and equipment

(18

)

(558

)

Net cash used in investing activities

(168

)

(1,557

)

Cash flows from financing activities:

Proceeds from rights offering, net

-

-

Proceeds from Convertible Debenture, net of debt issuance costs

-

9,442

Proceeds from stock issuance, net of costs

12,588

-

Net cash provided by financing activities

12,588

9,442

Effect of exchange rate changes on cash

(30

)

(6

)

Increase in cash, cash equivalents and restricted cash

7,139

3,489

Cash, cash equivalents and restricted cash at the beginning of the period

9,914

12,127

Cash, cash equivalents and restricted cash at the end of the period

$

17,053

$

15,616

Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statements of cash flow:

Cash and cash equivalents

$

16,455

$

15,061

Restricted cash included in long-term restricted lease deposits

598

555

Total cash, cash equivalents and restricted cash

$

17,053

$

15,616

SOURCE: Cyren Ltd


Attachment

File: Q1_2021_CYRN_Tables__Financials_Summary_5.17.2021_-_8-K


05/17/2021 EQS Newswire / EQS Group AG



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