Mississauga, Ontario (November 5, 2007) – Certicom Corp. (TSX: CIC) (“Certicom” or the “Company”) today announced that revenue for the second quarter of fiscal 2008, ended October 31, 2007, is expected to be lower than what management believes are market expectations. Second quarter revenue is expected to be in the range of US$3.1 million to $3.5 million.
“This quarter’s revenue fell short of expectations due to a combination of factors, including the complexity of the strategic deals we focus on and our product development shift towards more complete security solutions in response to changes in market demand. We may encounter revenue variability over the next few quarters as we adapt to changing market dynamics, progress through the Sony patent litigation case, and proceed with executing our growth strategy,” said Bernard Crotty, Certicom’s President and Chief Executive Officer.
Mr. Crotty continued, “While we are disappointed with this quarter’s revenue, it is important to note that we have not lost any second quarter prospective deals and our pipeline of opportunities remains robust. Furthermore, our outlook remains bright based on several encouraging factors: our growing portfolio of design wins provides a strong base for building recurring revenue, the evidence of global adoption of Certicom’s technology continues to accumulate, and our product development strategy is making excellent progress.”
The expected range for the Company’s operating expenses in the second quarter of fiscal 2008 is US$6.1 million to $6.5 million, consistent with the expense guidance given last quarter.
The Company expects to make an announcement about Certicom’s new Chief Executive Officer by December 31, 2007.
Certicom’s complete second quarter results will be released after market close on December 4, 2007.
Management will host a conference call to discuss the pre-earnings announcement at 11a.m. ET (8 a.m. PT) on Tuesday, November 6, 2007. Participants can access the call by dialing
416-644-3427 or 1-800-590-1508. The live audio webcast can be accessed by visiting www.certicom.com. A question and answer session for analysts and institutional investors will follow the call. An archived recording of the call will be available from 12 p.m. (ET) on November 6 until 12 a.m. (ET) on November 13, 2007. Participants can access the archive by dialing 416-640-1917 or 1-877-289-8525 and entering passcode 21252544#. The archived webcast can be accessed by visiting www.certicom.com.
Certicom protects the value of content, applications and devices with government-approved security. Adopted by the National Security Agency (NSA) for government communications, Elliptic Curve Cryptography (ECC) provides the most security per bit of any known public-key scheme. As the global leader in ECC, Certicom security offerings are currently licensed to more than 300 customers including General Dynamics, Motorola, Oracle, Research In Motion and Unisys. Founded in 1985, Certicom’s corporate offices are in Mississauga, Ontario, Canada with worldwide sales and marketing headquarters in Reston, Virginia and offices in the U.S., Canada, Europe and China. Visit www.certicom.com.
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