Rainbow Technologies First Quarter 2001 Earnings to Be Below Expectations

Conference Call Scheduled for 2:00 p.m. PDT Via Rainbow's Website



Apr 02, 2001, 01:00 ET from Rainbow Technologies, Inc.

    IRVINE, Calif., April 2 /PRNewswire/ --
 Rainbow Technologies, Inc. (Nasdaq:   RNBO) today announced that the company's
 first quarter 2001 earnings are anticipated to fall below the company's
 previous expectations partially due to the continued slowdown in the Internet
 infrastructure industry.  Unrealized losses on marketable trading securities,
 one-time charges, and a restructuring charge will total approximately
 $3.6 million.
     The company anticipates reporting an earnings per share loss in the range
 of $0.07 to $0.10.  The company had previously set earnings estimates for the
 quarter at $0.06 per share.  Full details on earnings will be announced
 May 2, 2001.  Rainbow will hold a conference call at 5:00 p.m. EDT or
 2:00 p.m. PDT today via the company's web site at www.rainbow.com to provide
 additional detail.
     The current economic slowdown continues to impact sales of Rainbow's
 Internet performance enhancement solutions and secure software distribution
 products, as major customers have delayed orders.  Rainbow's secure
 communications business segment is on track to record strong results for the
 quarter due to the continued record backlog of products.
     The company has implemented a reduction in its global workforce and is
 closely managing all expenses while continuing to invest in the research and
 development of new products and technology to serve the company's core
 markets.  The company is confident that its actions will result in improved
 profitability for the remainder of the year.
 
     About Rainbow Technologies, Inc.
     Founded in 1984, Rainbow Technologies is a leading provider of security
 solutions for the Internet and eCommerce.  Rainbow applies its core technology
 to a variety of Internet applications -- from securing software, to the
 acceleration of secure communication for eCommerce and Virtual Private
 Networks (VPNs).  Rainbow's products include secure Web server and VPN
 acceleration boards; anti-piracy and Internet software distribution solutions;
 PKI security solutions; voice, data and satellite security systems; and
 USB-based authentication tokens.  The company is headquartered in Irvine,
 California, and maintains offices throughout the United States, United
 Kingdom, France, Germany, Australia, China, India, The Netherlands, Brazil,
 and Taiwan.  A network of nearly 80 authorized distributors sells Rainbow
 products worldwide.  For more information, visit our Web site at
 www.rainbow.com.
 
     The Private Securities Litigation Reform Act of 1995 provides a
 "safe harbor" for forward-looking statements.  Certain information included in
 our Annual Report on Form 10-K and other materials filed with the Securities
 and Exchange Commission ("SEC") (as well as information included in oral
 statements or other written statements made or to be made by the Company)
 contain statements relating to the following:  current macroeconomic market
 conditions, dependence upon existing and new product offerings, competition,
 future growth, manufacturing and sourcing risks, and international operations,
 among others.  These conditions involve important factors that could cause
 actual results to differ materially from those expressed in any
 forward-looking statements made by or on behalf of the Company.  Any
 forward-looking statements are made pursuant to the Private Securities
 Litigation Reform Act of 1995 and, as such, speak only as of the date made.
 Statements made in this document that are not purely historical are
 forward-looking statements, including any statements as to beliefs, plans,
 expectations, or intentions regarding the future.  The Company assumes no
 obligation to update information concerning its expectations.
 
     For further information please contact:  Donna Smith, Manager Investor
 Relations, 949-450-7350, or fax, 949-753-9507, dsmith@rainbow.com, or
 Dan Chmielewski, 949-450-7377, dchm@rainbow.com, both of Rainbow Technologies,
 Inc.
 
 

SOURCE Rainbow Technologies, Inc.
    IRVINE, Calif., April 2 /PRNewswire/ --
 Rainbow Technologies, Inc. (Nasdaq:   RNBO) today announced that the company's
 first quarter 2001 earnings are anticipated to fall below the company's
 previous expectations partially due to the continued slowdown in the Internet
 infrastructure industry.  Unrealized losses on marketable trading securities,
 one-time charges, and a restructuring charge will total approximately
 $3.6 million.
     The company anticipates reporting an earnings per share loss in the range
 of $0.07 to $0.10.  The company had previously set earnings estimates for the
 quarter at $0.06 per share.  Full details on earnings will be announced
 May 2, 2001.  Rainbow will hold a conference call at 5:00 p.m. EDT or
 2:00 p.m. PDT today via the company's web site at www.rainbow.com to provide
 additional detail.
     The current economic slowdown continues to impact sales of Rainbow's
 Internet performance enhancement solutions and secure software distribution
 products, as major customers have delayed orders.  Rainbow's secure
 communications business segment is on track to record strong results for the
 quarter due to the continued record backlog of products.
     The company has implemented a reduction in its global workforce and is
 closely managing all expenses while continuing to invest in the research and
 development of new products and technology to serve the company's core
 markets.  The company is confident that its actions will result in improved
 profitability for the remainder of the year.
 
     About Rainbow Technologies, Inc.
     Founded in 1984, Rainbow Technologies is a leading provider of security
 solutions for the Internet and eCommerce.  Rainbow applies its core technology
 to a variety of Internet applications -- from securing software, to the
 acceleration of secure communication for eCommerce and Virtual Private
 Networks (VPNs).  Rainbow's products include secure Web server and VPN
 acceleration boards; anti-piracy and Internet software distribution solutions;
 PKI security solutions; voice, data and satellite security systems; and
 USB-based authentication tokens.  The company is headquartered in Irvine,
 California, and maintains offices throughout the United States, United
 Kingdom, France, Germany, Australia, China, India, The Netherlands, Brazil,
 and Taiwan.  A network of nearly 80 authorized distributors sells Rainbow
 products worldwide.  For more information, visit our Web site at
 www.rainbow.com.
 
     The Private Securities Litigation Reform Act of 1995 provides a
 "safe harbor" for forward-looking statements.  Certain information included in
 our Annual Report on Form 10-K and other materials filed with the Securities
 and Exchange Commission ("SEC") (as well as information included in oral
 statements or other written statements made or to be made by the Company)
 contain statements relating to the following:  current macroeconomic market
 conditions, dependence upon existing and new product offerings, competition,
 future growth, manufacturing and sourcing risks, and international operations,
 among others.  These conditions involve important factors that could cause
 actual results to differ materially from those expressed in any
 forward-looking statements made by or on behalf of the Company.  Any
 forward-looking statements are made pursuant to the Private Securities
 Litigation Reform Act of 1995 and, as such, speak only as of the date made.
 Statements made in this document that are not purely historical are
 forward-looking statements, including any statements as to beliefs, plans,
 expectations, or intentions regarding the future.  The Company assumes no
 obligation to update information concerning its expectations.
 
     For further information please contact:  Donna Smith, Manager Investor
 Relations, 949-450-7350, or fax, 949-753-9507, dsmith@rainbow.com, or
 Dan Chmielewski, 949-450-7377, dchm@rainbow.com, both of Rainbow Technologies,
 Inc.
 
 SOURCE  Rainbow Technologies, Inc.