Entrust Shows Momentum with Strong Financial Results, Product Platforms

DALLAS, Feb. 14, 2011 /PRNewswire/ -- Entrust, Inc., a world leader in securing digital identities and information, posted a record 2010, surpassing all financial goals during the first full year as a private company.

"With strong momentum in product platforms, new technologies, key customer wins and the strength of recurring revenue, Entrust topped all financial objectives for 2010," said Entrust President and Chief Executive Officer Bill Conner. "We finished the year with more than $105.6 million in total order bookings and overall product growth was up 24 percent. This allowed us to drive a 27 percent EBITDA margin and total cash flow from operations of $21.3 million. This momentum positions us for continued success in 2011."

Acquired by private equity firm Thoma Bravo in July 2009, Entrust credited the strong bookings to identity-based security products, SSL, managed services and the continued strength in support renewals. Total revenue increased 8 percent for the year to $98.9 million. Entrust's total product revenue increased 24 percent for the year to $44.1 million. The strong revenue performance allowed Entrust to grow EBITDA by 59 percent in 2010.

In 2010, 62 percent of Entrust's total revenue was recurring, and 47 percent of product revenue was subscription-based — an increase of 28 percent over 2009. This demonstrates the strength of Entrust's software-as-a-service (SaaS) offerings and the continued value delivered to customers.  Strong order bookings helped drive company-record-high deferred revenue and a year-over-year increase of 20 percent.

"In just a short time with the Thoma Bravo family, Entrust has already surpassed our early expectations — both from a financial standpoint and as a collection of talented, hard-working security experts," said Scott Crabill, Thoma Bravo managing partner and Chairman of Entrust's Board of Directors. "Thoma Bravo was drawn to Entrust's portfolio of security products and a global staff who are true leaders in the security space. We look forward to the continued success of the company in 2011."

Driven by the strong growth of Entrust IdentityGuard and Entrust PKI, the Dallas-based security firm landed a record number of new customers in 2010. In fact, Entrust IdentityGuard sales jumped 33 percent in 2010, led by the financial vertical and expansion outside North America. Overall transactions for Entrust IdentityGuard were up 23 percent for the year and up 33 percent in the fourth quarter.

Entrust PKI strength was underpinned by the financial and government verticals for eID projects and the continued strength of the company's managed service (SaaS) PKI. Entrust Certificate Services (SSL) had another record year with 33 percent growth in bookings.

"Being a private company helped us regain focus on what's important — our customers," said Conner. "Public companies face many distractions — from differing agendas across the board to the short-term focus of investors. As a private company, Entrust's Board of Directors, investors and employees are aligned on adding value for our customers. With the patience and support of a long-term shareholder like Thoma Bravo, Entrust has the opportunity to execute a plan that allows us to invest and strengthen our position as a leader in the identity-based security market."

During the first full year as a private company under Thoma Bravo, Entrust executed the necessary personnel and product shifts to unify the company and return to strong growth. With primary offices in Chicago and San Francisco, Thoma Bravo currently manages more than $2.5 billion of equity capital. Thoma Bravo, founded in 1980, employs more than 2,000 people and has invested in more than 175 companies. As a standalone software investor, the firm's combined companies would have more than $2.7 billion of revenue, which would make it amongst the largest software players in the industry.

"On top of these financial results, we also developed tremendous agility and innovation in our security products and services," said Conner. "In the past 12 months we launched mobile security capabilities, delivered a comprehensive credentialing service, and built an innovative certificate discovery and management solution. These capabilities extend our leadership in addressing key security issues facing our customers and the marketplace."

Key Technology & Product Highlights Included:

• Partnered with INTERPOL to deliver the world's first multipurpose smartcard travel credential for their officers
• Entrust IdentityGuard awarded SC Magazine's "Best Buy" with five-star rating in 2010 and 2011
• Entrust Managed Services PKI a finalist in SC Magazine's 'Best Managed Security Services' category for 2011 SC Magazine Awards
• Launched Entrust IdentityGuard Mobile, a family of identity applications that leverage existing mobile devices for greater authentication security; the solution provides proven transaction verification, one-time-passcode (OTP) authentication and Entrust's advanced software development kits (SDK) as powerful tools in the fight against online and mobile fraud
• Introduced Entrust Discovery as a comprehensive solution that helps find, inventory and manage digital certificates across diverse systems and environments — whether from Entrust or any other digital certificate provider
• Placed in "Leaders" quadrant of the Gartner, Inc., 2010 Magic Quadrant for Web Fraud Detection
• Announced availability of SPOC ePassport solution and expanded managed border solution to include integration to ICAO repository
• Entrust's PKI is now in half of all existing ePassports and half of all Extended Access Control (EAC) ePassports
• Entrust Certificate Services (SSL) added secure e-mail certificates to the company's line of digital certificates as well as additional functionality and capability to its industry leading Certificate Management System, which now boasts more than 2,400 customers

For more information about Entrust and the company's identity-based security solutions, please visit entrust.com. For details on Entrust's full line of SSL products and services, visit entrust.net.

About Entrust

Entrust provides identity-based security solutions that empower enterprises, consumers, citizens and websites in more than 4,000 organizations spanning 60 countries. Entrust's identity-based approach offers the right balance between affordability, expertise and service. For strong authentication, fraud detection, digital certificates, SSL and PKI, call 888-690-2424, e-mail [email protected] or visit www.entrust.com.

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Bill Conner

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SOURCE Entrust, Inc.