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Entrust Announces Financial Results for Fourth-Quarter and Fiscal 2008
Date:1/29/2009

from $26.7 million in Q4 2007, and an increase of 2 percent from $24.5 million in Q3 2008. Revenues were impacted by a strong U.S. dollar in Q4 2008. As a result, adjusted for currency total revenues were $27.9 million, an increase of 5 percent over Q4 2007 and 14 percent over Q3 2008. Product revenue increased to $10.2 million in the quarter, an increase of 1 percent from $10.1 million in Q4 2007, and 8 percent from $9.4 million in Q3, 2008. Product revenues adjusted for currency were $11.6 million, an increase of 15 percent over Q4 2007 and 23 percent over Q3 2008. The revenue figures, as adjusted for currency, are calculated based upon the actual currency rates in the comparable period.

Deferred revenue increased in the quarter to approximately $27.8 million, roughly flat to year-end 2007 and an increase of 1 percent from Q3 2008. Deferred revenues adjusted for currency were $31.1 million, an increase of 11 percent from year-end 2007 and an increase of 13 percent from Q3 2008. Services accounted for approximately 59 percent ($14.7 million) of total revenue in the quarter, a decrease of 11 percent from $16.5 million in Q4 2007 and a decrease of 2 percent from $15.0 million in Q3 2008. Services revenues, adjusted for currency, were $16.3 million, a decrease of 1 percent over Q4 2007 and an increase of 9 percent over Q3 2008.

"Entrust concluded a successful 2008. We increased our earnings by $4.3 million, generated $12 million of cash flow (excluding restructuring charges), and increased our subscription based product bookings by 48 percent to $17.5 million," said Entrust President and Chief Executive Officer Bill Conner. "2008 was a very difficult selling environment. The continued success of our IdentityGuard and TransactionGuard products, which were up 70 percent; our subscription-based product revenues, which increased 22 percent; and our focus on cost containment in the business helped deliver our strong earnings and cash flow
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SOURCE Entrust, Inc.
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