CyberDefender 2009 Q2 Revenues Grew 400% Compared With Same Period Last Year Ahead...
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CyberDefender 2009 Q2 Revenues Grew 400% Compared With Same Period Last Year
Ahead of Planned Major Marketing Initiatives
Improved Financials, Important New Partnerships and Multiple Marketing
Initiatives Keyed To Consumer Internet Safety Concerns Marked 2009 Second
Quarter
LOS ANGELES, Aug. 17 /PRNewswire-FirstCall/ -- CyberDefender Corporation
("CyberDefender") (OTC Bulletin Board: CYDE), a provider of award-winning PC
security, Antispyware/ Antivirus Software, PC Optimization, PC Support, and
Identity Theft Prevention solutions, which earlier this year reported a
doubling in sales in 2008, announced today that revenues through the first
half of 2009 have increased at an even higher rate as CyberDefender proceeds
with its "invest in scale" growth strategy.
CyberDefender reported that revenues in its second quarter and first half
ended June 30, 2009 each grew approximately 400% compared with the same
periods last year--from $742,862 to $3,686,644 in the comparative quarters and
from $1,217,908 to $6,878,274 in the comparative six month periods. With a
16% gain over the first quarter this year, revenues also continued their
quarter over quarter increase.
"What makes these results even more exciting," stated Gary Guseinov,
CyberDefender CEO, "is that while they developed largely as a consequence of
our increased marketing initiatives -- primarily on the Internet and on radio
-- they precede the full roll-out of our planned DRTV marketing campaigns
produced by Guthy-Renker and our planned retail distribution campaign with
over 195,000 participating U.S. and international retail outlets through our
strategic partner Allianex."
Year Over Year Cash Receipts Up 800%; New Licensees (Paying Customers) Grew
61%
CyberDefender noted that in the first six months of 2009 cash receipts from
the sales of new licenses, which become deferred income on its books over the
12 to 36 month terms of each license, increased to $11.1 million from $1.2
million in the first six months of 2008. It added that the growth in new
licensees has continued and reached 197,155 for the six months ended June 30,
2009, a 61% gain over the first six months of 2008.
Gross Profits Grew As Did Profitability of Marketing Expenditures; Net Loss
Declined From First Quarter
Gross profit in the 2009 second quarter grew significantly from $549,633 in
the same quarter last year to $2,933,320, indicating the potential for future
bottom line profitability. In line with our strategic plans, our decision to
invest significantly in marketing generated a loss from operations in the
quarter of about $3.76 million, representing an improvement from the first
quarter loss. Another indication of the initial push toward future
profitability was the decrease in the quarter of advertising expenditures as a
percentage of revenues. In the second quarter of 2009 our advertising
expenditures constituted 92% of revenues compared with 117% of revenues in the
first quarter this year.
$5.6 Million in New Growth Capital
During the first six months of 2009, as CyberDefender aggressively accelerated
customer acquisitions, it continued to seek outside financing to rapidly build
a critical mass in its customer base.
Mr. Kevin Harris, CFO of CyberDefender, commented, "I am pleased to report
that over the past six months we have successfully raised over $5.6M in growth
capital, with only a small amount representing unsecured convertible debt.
This infusion of capital helped to strengthen CyberDefender's balance sheet
with over $5.3M in current assets including $2M+ in cash. In addition, we
have reduced our overall net debt by approximately $0.7 million."
Other Developments
During the second quarter and more recently, CyberDefender made several key
announcements regarding its progress. These included:
-- Preparing for anticipated growth, CyberDefender added several highly
accomplished executives to its senior management team in marketing and
finance positions;
-- Guthy-Renker Co-CEO Bennet Van de Bunt joined the CyberDefender Board
of
Directors;
-- Partnering with industry leader InComm, CyberDefender expanded its
international retail distribution campaign to another 145,000 stores,
bringing total stores in the campaign to 185,000. Planned roll out of
"My Tech Card" prepaid cards in time for "Back to
School";
-- CyberDefender proceeded with several test TV ads ahead of expanded
national launch of its direct response TV campaign.
Outlook
"Looking ahead," Mr. Guseinov said, "we remain confident that the investment
of significant resources we are making mainly in wide reaching multichannel
marketing initiatives, will increasingly move us closer to our goal of 1
million+ paying customers. Our management is greatly strengthened and we have
developed partnerships with media, marketing and retail industry leaders. We
believe we are in the earliest stage of moving toward profitability and
further believe our focus on customer renewals and expansion of sales will
permit us to continue to deliver exciting results."
Conference Call Information
CyberDefender will host a conference call to discuss second quarter 2009
results on Monday, August 17, 2009 at 4:15pm ET.
Interested participants should call (877) 407-8035 at least five minutes
before the call is to begin when calling within the United States or
201-689-8035 when calling internationally. Please ask for the CyberDefender
conference call. A telephone replay will also be available for one week
beginning two hours after the completion of the live call, and can be accessed
by dialing 1-877-660-6853 or 201-612-7415 for international callers and
entering access number 286 and conference id 330499 when prompted.
The results will also be available via live and a 12 month archived webcast at
http://www.investorcalendar.com/IC/CEPage.asp?ID=148643
Southern California Investor Conference
CyberDefender will be presenting at the Southern California Investor
Conference on Tuesday, August 18, 2009 at 9am at the Island Hotel, Newport
Beach, CA. For those unable to attend, the presentation will be webcast at
http://events.powerstream.net/002/00271/20090818SCIC-T3/ .
The conference also will be broadcast live on www.CaliforniaStocks.com.
About CyberDefender Corporation
CyberDefender Corporation, based in Los Angeles, believes that its Internet
security technology offers the earliest possible detection and most aggressive
defense against Internet security attacks. CyberDefender uses a patent pending
secure peer-to-peer collaborative threat protection network (the
earlyNETWORK), to combat spyware, viruses and identity theft. Products
employing the earlyNETWORK include CyberDefender Early Detection Center and
MyIdentityDefender. CyberDefender also offers PC optimization utilities and
Live Premium Technical Support services. CyberDefender products are fully
compatible with Microsoft's Vista Operating system and available at
http://www.cyberdefender.com. To date, more than 15 million consumers have
used CyberDefender products.
Forward Looking Statements
Statements in this press release that are not statements of historical or
current fact, such as CyberDefender's expectation of future revenue growth and
profitability, constitute "forward-looking statements". Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause CyberDefender's actual results to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements. Factors that could cause
CyberDefender's results to be materially different from the forward-looking
statements include whether CyberDefender will be able to find financing when
and as it needs it and whether CyberDefender's revenues will eventually exceed
its expenses. The forward-looking statements contained herein are also subject
generally to other risks and uncertainties that are described from time to
time in CyberDefender's reports and registration statements filed with the
Securities and Exchange Commission, which are available for review at
http://www.sec.gov/.
CONTACTS-:
Web Site: http://www.cyberdefender.com/
Kevin Harris
Chief Financial Officer
CyberDefender
Kevin@cyberdefender.com
Tel: 213-689-8631 X127
Fax: 213-689-8640
Ken Donenfeld
DGI Investor Relations
donfgroup@aol.com
Tel: 212-425-5700
Fax: 646-381-9727
SOURCE CyberDefender Corporation
Kevin Harris, Chief Financial Officer, CyberDefender, +1-213-689-8631 X127,
Fax, +1-213-689-8640, Kevin@cyberdefender.com; or Ken Donenfeld, DGI Investor
Relations, +1-212-425-5700, Fax, +1-646-381-9727, donfgroup@aol.com
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